Can inherited debt impact your Social Security benefits?
Inherited debt typically does not impact Social Security benefits for heirs. Most debts are settled from the deceased's estate, not passed on to beneficiaries. Social Security benefits are largely protected from garnishment by creditors, ensuring that inherited debts do not directly affect these benefits.
- ▪Inherited debt generally does not follow heirs, as debts are paid from the deceased's estate.
- ▪Social Security benefits are protected from garnishment by commercial creditors under federal law.
- ▪Certain situations, like co-signing loans or joint accounts, may create personal liability for heirs.
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MoneyWatch: Managing Your Money Can inherited debt impact your Social Security benefits? We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Angelica Leicht Angelica Leicht Senior Editor, Managing Your Money Angelica Leicht is the senior editor for the Managing Your Money section for CBSNews.com, where she writes and edits articles on a range of personal finance topics. Angelica previously held editing roles at The Simple Dollar, Interest, HousingWire and other financial publications.
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