Canadian Tax and
Financial Information
Debts of Deceased

Ads keep this website free for you. does not research or endorse any product or service appearing in ads on this site.  Before making a major financial decision you  should consult a qualified professional.

Looking for US tax information?

Need an accounting, tax or financial advisor? Look in our Directory.  Use above search box to easily find your topic!   Stay Connected with!

What's New
Personal Tax
Sales Taxes
Free in 30!
Financial Planning
Real Estate
Stocks Bonds etc.
British Columbia
Atlantic Provinces
Federal Budget
Provincial Budgets
Statistics etc.
Site Map
Advertise With Us
Contact Us/About Us
Links & Resources

Financial Planning   ->   Wills and Estates -> What happens to the debts of a deceased person?

What Happens to Debts of the Deceased?

Debts are normally paid out of the assets of the estate of the deceased, before distributions are made to heirs.  If the estate is insolvent (the assets of the estate are not sufficient to pay the debts), then the order of payment is prescribed by provincial legislation.

If any unpaid loans to the deceased were cosigned by another person, that person will likely be liable for any balance unpaid after repayments are made from the estate.

Some debts may be extinguished upon the death of the debtor - for instance, in the case of insured loans or mortgages.

The Canada Student Financial Assistance Act provides for some student loans to be repaid by the federal government in the event of the student's death or permanent disability.

For information regarding what happens in each province, see What to do when someone dies, which has links to wills and estate information on provincial/territorial websites.

Revised: April 19, 2019


Copyright © 2002 Boat Harbour Investments Ltd. All Rights Reserved.  See Reproduction of information from

Facebook  | Twitter  |  Google + |  Monthly Newsletter Sign-up  What’s New E-mail Notification RSS News Feed
The information on this site is not intended to be a substitute for professional advice.  Each person's situation differs, and a professional advisor can assist you in using the information on this web site to your best advantage. 
Please see our legal disclaimer regarding the use of information on our site, and our Privacy Policy regarding information that may be collected from visitors to our site.