DEAR SAVVY SENIOR: What happens to a person’s debt after they die? At age 78, I have accumulated quite a bit of credit card and medical debt over the past few years and am concerned about leaving my son and daughter with a big bill after I die. — Old and Broke

DEAR OLD: In most cases when a person with debt dies, it’s their estate, not their kids, that’s legally responsible. Here’s how it works.

When you die, your estate — which consists of the stuff you own while you’re alive (home, car, cash, etc.) — will be responsible for paying your debts. Whatever is left over is passed along to your heirs as dictated by the terms of your will, if you have one. If you don’t have a will, the intestacy laws of the state you reside in (see mystatewill.com) will determine distribution.

If you die broke, or there isn’t enough money left over to pay your unsecured debts — credit cards, medical bills, personal loans — then your estate is declared insolvent, and your creditors will have to eat the loss.

There are a couple of exceptions that would make your kids legally responsible for your unsecured debt: if your child is a joint holder on a credit card account, or co-signer on a loan with you.

Secured debts — loans attached to an asset such as a house or a car — are another story. If you have a mortgage or car loan when you die, those monthly payments will need to be made by your estate or heirs, or the lender can seize the property.

There are some assets, such as 401(k) and 403(b) accounts, brokerage accounts, and some life insurance policies that creditors cannot get access to. That’s because these accounts typically have designated beneficiaries, and the money goes directly to those people.

If you haven’t already done so, you need to inform your kids and the executor of your will of your financial situation so there are no surprises after you die.

If you do indeed die with debt, and you have no assets, settling your estate should be fairly simple. Your executor will need to send out letters to your creditors explaining the situation, including a copy of your death certificate, and that will probably take care of it. But, your kids may still have to deal with aggressive debt collectors who try to guilt them into paying.

If you have some assets, but not enough to pay all your debts, your state’s probate court has a list of what bills get priority.

If you have questions regarding your specific situation, you should consult with an attorney. If your need help locating one, use findlegalhelp.org, a consumers guide created by the American Bar Association. If you don’t have internet access, call the Eldercare Locator at 800-677-1116 for referrals.

Send your senior questions to: Savvy Senior, P.O. Box 5443, Norman, OK 73070, or visit SavvySenior.org.