Will my children have to pay my debts?

Not usually, unless they guaranteed or share the debt. Debts are normally paid from your estate.

What if my debts are more than what I own?

Your executor must deal with creditors in the right order, and beneficiaries may receive less or nothing. A lawyer can advise your executor.

Property, money and business

Debts and your estate

Your debts are usually paid out of your estate before your beneficiaries receive their gifts.

In 30 seconds

Debts come first

Debts and costs are usually paid from your estate before gifts are passed on.

Gifts can shrink

If debts are large, some gifts may be reduced or may not be paid in full.

Secured loans are linked

A mortgage or car loan is tied to the asset. It may affect what the beneficiary receives.

Record them

Note each loan or debt and where the paperwork is kept, so nothing is missed.

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When you die, your executor normally pays your debts, funeral costs and the costs of dealing with the estate first. What's left goes to your beneficiaries. Recording your debts helps your executor deal with them quickly.

How debts are paid

Your executor gathers what you owned and uses it to pay what you owed. Only then are gifts passed on. Your family doesn't usually become personally responsible for your debts just because they are related to you, unless they guaranteed or shared the debt.

What to record

List each debt with:

The type of debt, such as a mortgage, car loan, business loan or personal loan
Who you owe, in general terms
Any asset it is secured against
Where the paperwork is kept

Key points

Debts are usually paid before gifts.
Secured debts are linked to the asset.
Recording debts helps your executor.

Common mistakes

Leaving large gifts without allowing for debts.

Questions people ask

Will my children have to pay my debts?: Not usually, unless they guaranteed or share the debt. Debts are normally paid from your estate.
What if my debts are more than what I own?: Your executor must deal with creditors in the right order, and beneficiaries may receive less or nothing. A lawyer can advise your executor.

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This guide is general information, not legal advice about your circumstances. A qualified lawyer reviews your will before you sign it.

Last updated 24 September 2026.