Short Form What Happens to Your Debt When You Die

LEGACY INVESTMENT SERVICES

YouTube Short Script  |  June 2025  |  Week 2 - Short 7

TITLE: What Happens to Your Debt When You Die

ADVISOR: Jordan Cassiani

RUNTIME: 55-65 seconds

FORMAT: Vertical 9:16, tight on-camera, no cuts

CTA: Link in bio for complimentary retirement income analysis

Securities and advisory services offered through Osaic Wealth, Inc., member FINRA/SIPC. Legacy Investment Services and Osaic Wealth are separate entities. Content is for educational purposes only. Not investment, tax, or legal advice. All scenarios are hypothetical illustrations.

SCRIPT

One of the most common questions families have when a loved one dies is: are we responsible for their debt?

The general rule is that your estate is responsible for your debts, not your heirs personally. Creditors can make claims against the estate before anything is distributed to beneficiaries. But your adult children do not personally inherit your credit card balance or your personal loan.

There are exceptions. If your spouse co-signed a debt, they remain responsible for it. If you live in a community property state, there are different rules for debts incurred during marriage. Federal student loans are discharged at death. Private student loans depend on the lender.

The practical implication for estate planning is that debts reduce what is available to pass to heirs. A $50,000 outstanding balance on a home equity line of credit is a $50,000 reduction in the estate before your beneficiaries receive anything.

This is another reason to understand your full balance sheet, not just your assets, as part of retirement and estate planning. The net number is what your family actually inherits.

Link in my bio for a complimentary review.

PRODUCTION NOTES

Matter-of-fact and reassuring. People are often anxious about this topic. Clear up the misconception early in the script.

Legacy Investment Services  |  Jordan Cassiani  |  Legacy - What Happens to Debt When You Die - Short - Week 2