In most cases when a person with debt dies, it is their estate and not their children or heirs that are legally responsible. Here is what you should know.

Debt After Death

When you die, your estate – which consists of the assets you owned such as real property, investments and cash – will be responsible for paying your debts. If you do not have enough cash to pay your debts, your heirs will have to sell your assets and pay off your creditors with the proceeds.

Any remaining assets left after debts are paid off will be distributed to your heirs as directed by the terms of your will or trust. If you do not have a will or trust, the intestacy laws of the state you resided in will determine how your estate will be distributed.

If you pass away without enough assets to cover your unsecured debts, such as credit cards, medical bills, and personal loans, then your estate is considered insolvent, and your creditors may have to write off some or all of the remaining debt.

Secured debts, which refer to loans attached to an asset such as a house or a car, are handled differently. If you have a mortgage or car loan when you die, those monthly payments will need to be made by your estate or heirs. If the loans are not paid, the lender can seize the property.

There are some exceptions that would make your heirs legally responsible for your debt after you pass away. If the heir is a joint holder on an account that you owe money on, the heir is legally responsible for the debt. Similarly, if your heir co-signed a loan with you, the heir is liable for the loan.

Spouses Beware

If you are married, the debt inheritance rules discussed above also apply to surviving spouses unless you reside in a community property state. Community property states, which include Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin have different rules. In these states, any debt that one spouse acquires during the marriage belongs to the other spouse too. Therefore, spouses in community property states are usually responsible for their deceased spouses’ debts.

Protected Assets

Assets such as IRAs, 401(k)s, brokerage accounts, life insurance policies or employer-based pension plans are usually protected from creditors. These types of accounts have designated beneficiaries, and the money goes directly to the beneficiaries without passing through the estate.

Settling the Estate

If you pass away with outstanding debts and no assets, settling your estate will be relatively simple. Your executor should notify your creditors by sending a letter that explains the situation and includes a copy of your death certificate. If a debt collector becomes aggressive with your heirs or tries to guilt them into paying, they should remember they are not legally responsible.

If you have some assets but not enough to pay all your debts, your state’s probate law has a list of the order of priority for paying debt. While the specifics can vary by state, estate administration fees, funeral expenses, taxes and end-of-life medical expenses are usually paid first, followed by secured debts and, lastly, unsecured debts.

Need Legal Help?

If you or your heirs have questions or need legal assistance, contact a consumer law attorney or probate attorney. If you cannot afford a lawyer, consider searching online for free or low-cost legal help in your area.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Senior” book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization’s official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.

A previous IRS Commissioner noted, “Taking a few simple steps to protect your passwords can help protect your money and your sensitive financial information from identity thieves, which is critically important as tax season approaches. Protecting your information makes it harder for an identity thief to file a fraudulent tax return in your name.”

Cybersecurity experts have changed their recommendations related to password strategies. Previously, they suggested complex passwords that were different for every online account. Because most individuals have accounts for financial services, social media, online shopping and other purposes, the number of complex passwords needed became too overwhelming and difficult to recall. 

As a result, security experts now recommend longer phrases such as “SomethingYouCanRemember@30.” Here are nine IRS tips to help protect online accounts: 

• Password Length – Eight or more characters
• Combination – Use upper and lowercase letters, numbers and symbols in your password.
• Personal Information – Do not use your city, street, or other personal information in a password. This information is widely available to identity thieves.
• Default Password – Do not use “password” for your password. Change all default passwords.
• Reuse of Passwords – Do not use the same or similar passwords on accounts. For example, if you use Begood!17 as your password, do not simply change it to Begood!18 and Begood!19.
• Email Address – Do not use your email address as a username. Email addresses are easily known by fraudsters.
• Security – If you have a written list of passwords, store them in a safe or locked file cabinet.
• Disclosure – Never give out passwords over the internet. Be very cautious if an email sender asks for your password and claims to be from your bank, the IRS or your employer.
• Password Manager – Consider using a password manager program. Search to find password programs for smartphones or tablets. The best password programs typically have 256-bit encryption.

Communication difficulties between patients and their doctors are nothing new. Many patients feel as if doctors are dismissing their concerns, which can be frustrating and potentially lead to missed diagnoses and delayed care. If you believe your doctor is not listening to you, here are some tips offered by the National Institute on Aging that may help.

Prepare for your appointment: Before your exam, make a written prioritized list of any questions and concerns you want to discuss with your doctor. If you have done any online research, print it out and bring it to your appointment to ensure all information gets discussed. If it is a diagnostic visit, you should prepare a detailed description of your symptoms, when they started and what makes them worse.

Be honest and upfront: Even if the topic seems sensitive or embarrassing, it is important to be honest and upfront with your doctor. You may feel uncomfortable talking about memory loss or bowel issues, but these are all important to your health. It is better to be thorough and share detailed information than to be quiet or shy about what you are experiencing or feeling. Remember, your doctor is trained to talk about all kinds of personal matters.

Ask specific questions: If you and your doctor are not communicating well, ask specific questions that require a response. For example: What might have caused the problem I am dealing with? What is the specific name of my diagnosis? Is the problem serious? Will it heal completely or require ongoing management? What future symptoms might suggest the need for emergency care or a follow-up visit? When and how will test results be received? If you do not understand something, do not hesitate to ask, “Can you explain that in simpler terms?” or “Can you give me more details about that?”

Take someone with you: Bring a family member or friend to your appointment. Your companion can help you ask questions or raise concerns that you may not have thought of, help you understand the doctor’s advice and provide you support.

Be persistent: If your doctor is not addressing your questions, repeat them or rephrase them. If there is still no progress, follow up by saying, “I am worried that we are not communicating well. Here is why I feel that way.” or “I need to talk with you about X, but I feel like I cannot. Can we address this together?” If you feel as though you are being dismissed, ask your doctor to include in the notes that they are declining to provide care of the particular symptoms.

After your appointment, if you are uncertain about any instructions or have other questions, call or email your health care provider. Do not wait until your next visit to make sure you understand your diagnosis, treatment plan or anything else that might affect your health.

For more tips, the National Institute on Aging offers a free booklet called “Talking with Your Doctor: A Guide for Older Adults” that can help you prepare for an appointment and become a better and more informed patient. To order free copy or see it online, visit order.nia.nih.gov/publication/talking-with-your-doctor-a-guide-for-older-adults.

Consider moving on: If the communication problem with your doctor persists, it may be time to start looking for a new provider. Depending on how unsatisfied you are with your care, you could also notify your doctor’s medical group and your insurance company or leave feedback on their online profile. If you are dealing with a serious issue – like a doctor who prescribes the wrong medication or fails to provide test results in a timely manner – it might be appropriate to file a complaint with the state medical board.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living” book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization’s official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.

The Centers for Medicare and Medicaid Services recently announced the cost-of-living adjustments for 2025. While premium and out-of-pocket cost increases will be moderate for most beneficiaries, high income earners will pay significantly more. Here is what you can expect to pay in 2025.

Part B Premium

Medicare Part A, which covers hospital care, is premium-free for most beneficiaries. Medicare Part B, which covers doctor visits and outpatient services, has a monthly premium.

Starting in January, the standard monthly Part B premium will be $185, up from $174.70 in 2024. The $10.30 difference represents an increase of 5.9%, which is more than double the recent Social Security cost-of-living adjustment of 2.5%.

If you are a high-earning beneficiary, a group that comprises approximately 8% of all Medicare recipients, you will have to pay more. Medicare surcharges for high earners, known as the income-related monthly adjustment amount (IRMAA), are based on adjusted gross income (AGI) from two years earlier. This means that your 2025 Part B premiums are determined by your 2023 AGI, which is located on line 11 of Form 1040.

If your 2023 income was from $106,000 to $133,000 ($212,000 to $266,000 for joint filers), your 2025 Part B monthly premium will be $259. For individuals with an income over $133,000 to $167,000 (over $266,000 to $334,000 for joint filers), the monthly premium will rise to $370. Individuals earning more than $167,000 up to $200,000 (more than $334,000 up to $400,000 for joint filers) will see their monthly Part B premium increase to $480.90. Those with incomes above $200,000 up to $500,000 (above $400,000 up to $750,000 for joint filers) will pay $591.90 per month in 2025. Individuals with income more than $500,000 (more than $750,000 for joint filers) will pay $628.90 per month.

Part D Premium

If you have a stand-alone Medicare (Part D) prescription drug plan, the average premium in 2025 will be $46.50 per month for most beneficiaries, down from $53.95 in 2024. For high earners with annual incomes above $106,000 ($212,000 for joint filers), you will pay a monthly surcharge between $13.70 to $85.80 (based on your income level) in addition to your regular Part D premiums.

How to Contest Income

Beneficiaries who fall into any of the high-income categories and have experienced certain life-changing events that have reduced their income since 2023, such as retirement, divorce or the death of a spouse, can contest the surcharge. For more information on how to do this, see “Medicare Premiums: Rules for Higher-Income Beneficiaries” at SSA.gov/benefits/medicare/medicare-premiums.html.

Other Medicare Increases

In addition to the Part B and Part D premium increases, there are other cost increases you should take into consideration. For example, the annual deductible for Medicare Part B will be $257 in 2025, which is $17 more than the 2024 deductible of $240. In addition, the deductible for Medicare Part A, which covers hospital services, will increase to $1,676 in 2025. This amount is $44 more than the 2024 deductible of $1,632. There are no surcharges on Medicare deductibles for high earners. For more information on all the Medicare costs for 2025 visit Medicare.gov/basics/costs or call 800-633-4227.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living” book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization’s official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.