What happens to your debt after death?

DEBT follows us to the grave, and understanding what happens to it after death is a key part of sound estate planning.

- SHERRY TAPFUMA

How your debt is handled depends on several factors, including your estate's solvency, the type of debt, whether it's co-signed or guaranteed, your marital contract, and the provisions in your will. Here's what you need to know.

The role of the executor: Once your death is reported to the Master of the High Court, an executor is appointed to administer your estate. This person becomes your estate's legal representative, responsible for settling all debts before any assets are distributed to heirs or beneficiaries. Your executor will begin by meeting with your family and preparing an inventory of your assets and liabilities.

Advertising for creditors: One of the executor’s first duties is to place notices in a local newspaper and the government gazette, calling on creditors to submit claims, and these adverts remain open for 30 days. It's important to remember that death does not extinguish debt, and creditors retain the right to claim from the deceased's estate.