What happens to a deceased parent's debt in California without a will or executor?

Question

In California, my deceased parent left no will and had an outstanding mortgage on their home, which was their only major asset. There were also some outstanding debts, but no creditors have contacted me yet. I am the only surviving family member and no legal proceedings concerning the estate have been initiated. What happens to my deceased parent's debt in this situation?

Nina Whitehurst · Answer

If the unsecured creditors fail to open a probate and file claims within one year after date of death, those debts evaporate.  
 
However, the mortgage debt continues as a lien against the real property. If the mortgage is not paid as agreed every month the lender may foreclose.

James Clifton · Answer

If more than one year passes after the date of death, the claims of unsecured creditors are generally barred. The mortgage is a secured debt and will continue to exist on the property and must be paid. In order to transfer the property to you as an heir, probate will be needed, unless the deed was held by you and your parents as joint tenants, or you are named as a beneficiary under a transfer on death deed. Schedule a free consultation to make sure the property is protected from unsecured creditors and transfers to you.

James L. Arrasmith · Answer

In California, when your parent passes away without a will or executor, their debts generally become the responsibility of their estate. This means that any outstanding debts, including the mortgage, must be settled from the estate’s assets before anything can pass to you or other heirs. If the home is the only major asset, it may need to be sold or refinanced to pay off the mortgage and any other creditors. 
 
Since you mentioned no creditors have reached out yet, you may eventually hear from them once they discover your parent’s death, or once probate proceedings begin. As the sole surviving family member, you might want to initiate probate yourself, which can help clarify which debts are valid and ensure they're appropriately settled. If the estate does not have enough funds to cover all debts, creditors may not receive full repayment, and you personally would typically not be responsible for paying them. 
 
However, if you want to keep the home, you should promptly discuss options with the mortgage lender to prevent foreclosure. You could potentially assume the mortgage payments or refinance the property. Consulting with a probate attorney can help you understand your best options for managing the estate and protecting your interests during this complex time.

Q: What happens to a deceased parent's debt in California without a will or executor?