How Are Debts Paid After Someone Dies in Ohio?

 Posted on December 26, 2025 in Estate Planning

In Ohio, debts are usually paid from the deceased person’s estate. The order in which debts are paid can vary. What happens if there is not enough money, and whether anyone else may be responsible, depends on the situation. If you are dealing with a death in the family, our Medina County, OH estate planning lawyers can help you navigate the aftermath, especially the probate process.

What Is an Estate Under Ohio Law?

An estate is everything a person owns at the time of death. This may include bank accounts, real estate, vehicles, personal property, and investments. The estate is also responsible for paying valid debts before any remaining assets are passed on to heirs.

In Ohio, estates are usually handled through probate court. Probate is the legal process used to gather assets, pay debts, and distribute what is left. If the person had a will, the court usually appoints the executor named in the will. If there is no will, the court chooses an administrator.

Do Family Members Have to Pay a Loved One’s Debts After Death?

In most cases, family members are not personally responsible for a loved one’s debts just because of their relationship. Debts are paid from the estate, not from the personal income or property of children, siblings, or other relatives.

There are limited exceptions. For example, a surviving spouse may still be responsible for certain joint debts. A co-signer on a loan may also remain responsible. These situations depend on how the debt was set up, not on probate law alone.

It is important to be cautious when speaking with creditors. Paying a debt voluntarily or agreeing to take on responsibility for it can create problems later.

What Types of Debts Must Be Paid First by an Estate in Ohio?

Ohio law sets out a mandatory order of priority for paying debts. This matters when the estate does not have enough money to pay everything.

Under Ohio Revised Code § 2117.25, debts are generally paid in a specific order. While the exact list is detailed, higher-priority expenses usually include funeral costs, estate administration expenses, and certain taxes. Lower-priority debts may include credit cards or personal loans.

If the estate runs out of money before all debts are paid, lower-priority creditors may not receive full payment or any payment at all.

What Happens if an Estate Does Not Have Enough Money to Pay Debts?

When an estate does not have enough assets to pay all debts, it is considered insolvent. In that situation, debts are paid according to the legal priority rules, and remaining debts are typically discharged. Heirs do not have to make up the difference with their own money. However, this also means there may be little or nothing left to inherit.

This is one reason estate planning is important. Planning can help reduce the risk of unpaid debts and protect assets for loved ones.

Do All Assets Have To Go Through Probate in Ohio?

Some assets pass outside of probate and are usually not used to pay most debts. Common examples include:

• Life insurance benefits with a named beneficiary

• Retirement accounts, such as IRAs or 401(k)s, with beneficiaries listed

• Jointly owned property with rights of survivorship

• Payable-on-death bank accounts

• Transfer-on-death investment accounts

These assets usually go directly to the named beneficiary and are not part of the probate estate. However, some debts, such as certain taxes or loans secured by the asset, may still apply. A lawyer can help you understand the specific details of your loved one’s estate.

What Mistakes Should Families Avoid After a Death?

Many families make mistakes early in the process because they are trying to act quickly or be helpful. These mistakes often include paying debts before understanding the estate’s full financial situation. Families may also distribute property too soon, before probate closes. Others miss probate deadlines or rely on verbal advice from creditors. Taking time to understand the process can help prevent legal and financial problems later.

Contact Our Medina, OH Estate Planning Attorney Today

Handling debts after a loved one’s death can feel overwhelming, especially during a time of grief. At The Law Office of Whitney K.S. Miller, LLC, our attorneys have more than 21 years of combined experience helping our clients address a variety of legal concerns, including probate and estate matters. If you have questions about creditor claims, estate administration, or planning ahead, contact our Medina County, OH estate planning lawyers at 330-725-4114 today.