Dealing with the Debts of a Deceased Family Member

Grief following the death of a family member can affect people in many different ways. 

One practical consequence may be a reduction in household income, which can add financial strain to an already difficult time.

In the midst of bereavement, it can be hard to focus on practical matters—especially if the deceased was the one who managed the family finances. Dealing with outstanding debts may feel overwhelming, but the following guidance is designed to simplify the process and offer practical support.

Understanding Probate and Estate Management

When someone dies, their estate enters a legal process called probate. This process is managed by a representative:

• An executor (if there is a will)
• An administrator (if there is no will – known as intestate)

This person is responsible for preparing an inventory of the deceased’s assets and debts.

Identifying the Estate and Gathering Financial Documents

An estate includes:

• All monies, bank accounts, investments, pensions, policies, and properties (solely or jointly owned)
• Liabilities such as mortgages, loans, and household bills (e.g. utilities in the deceased’s name)

If utility bills or tenancy agreements were solely in the deceased’s name, addressing these promptly helps ensure continuity of supply and the family’s right to remain in the home.

Support is available:
The Money Advice & Budgeting Service (MABS) offers free and confidential guidance: www.MABS.ie

Requesting Information on the Deceased’s Assets and Liabilities

Creditors must be informed of the death. They may request:

• A copy of the death certificate
• Proof of relationship to the deceased

Important note:
GDPR does not apply to the records of a deceased person, so access cannot be granted under this legislation.

However, the Data Protection Commissioner may accept requests under Freedom of Information (FOI). These must be:

• Made in writing
• Accompanied by proof of relationship to the deceased

More information: Freedom of Information – Citizens Information

Paying Debts from the Estate

The estate is responsible for settling the deceased’s debts. Typically, the following are paid first:

• Funeral expenses
• Testamentary and related costs

If the estate has sufficient funds or assets, debts are paid before any inheritance is distributed.

Special considerations:

• Credit Union deposits under €27,000 can pass to a nominated person without forming part of the estate.
• Joint accounts may also bypass the estate.
• Credit Union debts may be covered under their insurance scheme.

If the estate is solvent but insufficient, a legal hierarchy determines which debts are paid first.

If there are no assets, the estate is considered insolvent, and the debts may go unpaid.

Types of Debts

Secured Debts (e.g. Mortgage on the Family Home)

Mortgage repayments must continue unless mortgage protection insurance or life cover is in place.

A mortgaged property may need to be sold if:

• No mortgage protection/life cover exists
• The estate lacks sufficient funds
• The family cannot afford repayments
• The mortgage cannot be paid off in full
• The family cannot refinance the mortgage

Preferential Debts

These include:

• Taxes
• Social insurance
• Debts owed to the state at the time of death

Secondary or Unsecured Debts

Examples include:

• Credit cards
• Personal loans
• Medical bills

If the estate lacks sufficient funds:

• These debts may go unpaid
• Creditors may write off the debts or attempt to collect from the estate
• Creditors cannot pursue family members unless the debts were co-signed or guaranteed

Joint or Guaranteed Debts

Debts in joint names or those that were guaranteed remain the responsibility of the surviving party or guarantor. They may be liable for the full balance.

Inheritance and Creditors

If a family member receives an inheritance, creditors may attempt to claim against it to settle outstanding debts.

Inheriting Debts

If the inheritance is less than the value of the deceased’s debts:

• You may not be responsible for those debts
• This applies if the debts were solely in the deceased’s name and not co-signed or guaranteed

Legal Advice

Legal advice is essential—especially in complex cases. Professional guidance can help ensure the estate is managed correctly and fairly.

Conclusion

The deceased’s estate is responsible for paying their debts, unless those debts were co-signed or guaranteed by someone else.

If the estate can cover the debts, they are paid. If not, creditors may not be able to collect, and the debts may go unpaid.

Links and Resources

• www.MABS.ie
• www.CIC.ie
• www.FLAC.ie