Managing Debts You Owe & Loans Owed to You

The Debts & Loans Hub

Keeping track of debts—both those you owe and those owed to you—is essential for financial planning and estate management. Whether it’s a mortgage, personal loan, or money you’ve lent to others, maintaining clear records ensures obligations are settled, payments are made on time, and assets aren’t lost. Proper documentation also helps executors and heirs understand outstanding liabilities and recover debts owed to your estate, preventing unnecessary financial complications.

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Table of Contents

Key Things To Know

Tracking both debts you owe and loans owed to you helps ensure financial clarity and a smooth estate transition. Here’s what to keep in mind.

  • All outstanding debts should be documented: Keep a list of mortgages, personal loans, auto loans, student loans, and credit lines to prevent overlooked obligations.
  • Some debts may be discharged after death: Certain debts, like federal student loans, may be forgiven, while others, such as mortgages, may transfer to heirs or the estate.
  • Loans owed to you should be clearly recorded: If someone owes you money, document the terms, amounts, and repayment agreements to help your heirs recover these funds.
  • Co-signed and joint debts remain active: If you co-signed a loan, the co-borrower remains responsible for repayment even after your passing.
  • Estate planning should include debt settlement instructions: Clearly outline how debts should be handled and ensure that your executor has access to necessary loan records.

Checklists, Guides, & Resources

Buried in Work offers a variety of checklists, guides, and other resources. Below are some of the most popular ones related to this information hub.

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Frequently Asked Questions

Have questions about documenting and managing debts and loans? Here are answers to common concerns.

Record all personal debts, including mortgages, car loans, student loans, credit cards, and any outstanding personal or business loans. Also document any money owed to you.

Without clear records, your heirs may not be aware of debts owed to your estate, and those funds could go uncollected. Keeping written agreements and payment records helps ensure repayment.

Most debts must be paid from your estate before assets are distributed to heirs. However, some debts, like federally-backed student loans, may be forgiven, while joint debts remain the responsibility of the co-borrower.

In most cases, debts do not transfer directly to family members unless they co-signed or are joint account holders. Instead, debts are settled through your estate.

Store your information in a secure location and consider utilizing an estate organization system like the CLEAR Kit to ensure your records are protected and accessible when needed.

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Disclaimer: The information provided on this website and by Buried in Work is for general informational purposes only and should not be considered legal advice. Please consult with a qualified attorney or subject matter expert for advice specific to your situation.