My Macmillan

Debts you leave behind

What happens to my loan if I die?

Everything you leave when you die is called your estate. This is the value of everything you own, minus everything you owe.

Whatever remains goes to your beneficiaries (people who receive money or assets when you die). If you have debts, they reduce the size of your estate, so your beneficiaries receive less. If your debts amount to more than the value of everything you own, there will be nothing left for your beneficiaries. But these debts are cancelled and your beneficiaries won’t have to pay them.

There are some exceptions to the situation described above: