KNOW YOUR RIGHT: Can You Inherit Your Late Father’s Debt in Nigeria?
When a person dies, family members often begin discussing how to share the deceased’s houses, lands, vehicles, bank accounts, and other assets.
But what happens if the deceased left behind huge debts?
Can a bank force the children to pay? Can creditors seize the personal property of a widow or children? Can family members be arrested because their late relative owed money?
Here is what Nigerian law says.
The General Rule: Debt Is Not Inherited
Under Nigerian law, a child, spouse, brother, or other relative does not automatically inherit the debts of a deceased person.
This means:
A bank cannot seize your personal property because your late father owed money.
Creditors cannot demand payment from you simply because you are related to the deceased.
Family members cannot be arrested or imprisoned for a debt owed by a deceased relative.
In simple terms, debt is not hereditary.
What the Law Says
The law recognizes that a deceased person’s debts are payable from the person’s estate before any inheritance is distributed.
The estate includes:
Houses and buildings
Landed property
Vehicles
Money in bank accounts
Investments
Other assets owned by the deceased
Under Nigerian probate and succession principles, debts and liabilities of the deceased must be settled before beneficiaries can receive their inheritance.
The Estate Pays First
If a man dies owing ₦10 million and leaves behind assets worth ₦15 million, the debt will be paid from those assets.
For example:
House value: ₦15 million
Debt owed: ₦10 million
The creditor may obtain legal authorization to recover the debt from the estate.
After the debt is settled, the remaining ₦5 million worth of assets can be distributed to beneficiaries.
What If the Debt Is More Than the Estate?
Suppose the deceased owed ₦50 million but left behind assets worth only ₦5 million.
In that situation:
The creditor may recover the available ₦5 million from the estate.
The remaining ₦45 million generally becomes unrecoverable.
The creditor cannot transfer the unpaid balance to the deceased’s children or relatives.
Two Important Exceptions
Although family members do not ordinarily inherit debt, there are situations where a person may become personally liable.
1. If You Guaranteed the Loan
Where a person signed as a guarantor for the deceased while the loan was being obtained, the guarantor may become legally responsible for repayment according to the terms of the guarantee agreement.
2. Joint Loans or Joint Financial Obligations
Where two or more people jointly obtained a loan, the surviving borrower remains liable for repayment even after the death of the other borrower.
This is because the debt belongs to all parties who signed the loan agreement.
What Should Families Do?
Where creditors approach the family after a person’s death, the proper process is for the estate to be administered through:
Probate (where there is a valid Will), or
Letters of Administration (where there is no Will).
Only then can the assets and liabilities of the deceased be legally managed and distributed.
Know Your Right
A deceased person’s debt is generally payable from the estate, not from the personal assets of surviving family members.
Unless you signed as a guarantor or jointly borrowed the money, Nigerian law does not make you personally responsible for your late relative’s debt.
Legal Basis
This principle is derived from Nigerian probate and succession law, which requires the settlement of lawful debts and liabilities from a deceased person’s estate before distribution to beneficiaries.
Disclaimer: This article is for public legal education only and should not be taken as a substitute for professional legal advice. Specific cases may depend on the terms of loan agreements, court orders, and applicable laws.
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