Poll finds more than one in two Americans fear leaving a legacy of debt

A new survey by Debt.com reveals that more than half of Americans are concerned about leaving debt to their loved ones upon their death.

Among other sobering findings, the research found nearly half of participants estimate they'll leave their families in the red as they pass on debt obligations that range between $10,000 and over $30,000.

The survey of 1,000 participants found 48.66 percent believe their debt inheritance will fall within that range, highlighting a significant financial burden for families.

“This survey shows that too many people are carrying debt that’s likely to impact their family’s financial future, with a significant number expecting to leave behind tens of thousands of dollars," Don Silvestri, president of Debt.com, said in a statement announcing the findings. "This underscores the importance of financial planning and debt management now, so that families can focus on legacies, not liabilities.”

The study also revealed that 70 percent of respondents would take on debt to cover funeral expenses for a family member, a clearly non-trivial increase from 55 percent in 2023. Among those willing to assume such costs, 20 percent are prepared to borrow $2,001 to $3,000, while 18 percent would be willing to carry $1,001 to $2,000 in debt.

Meanwhile, half of participants said they've been left saddled with credit card debt after a loved one passed away. Among that cohort, 37 percent said the ordeal caused significant anxiety.

While it should be possible for families to prepare for the worst, three-quarters of respondents (74 percent) said they're uncomfortable contemplating the inevitable. Within that group, 76 percent said the discomfort holds them back from making plans.

With just 41 percent of respondents having a written will and 33 percent having final expense insurance, Silvestri said the findings should serve as an amber alert about the need for broader conversation about debt obligations after death, which even the King of Pop himself wasn't able to avoid in the end.

“Most Americans don’t know which debts they inherit and which they don’t. Death or planning for one’s death isn’t confusing; it’s just uncomfortable, so many of us avoid it entirely,” he said.

Despite the financial stakes, the survey found only 41 percent of respondents have a written will, and 33 percent have final expense insurance. Additionally, 74 percent are uncomfortable discussing death, a sentiment that 76 percent attribute to delaying end-of-life planning.

Gen X participants were identified as the most likely to expect leaving behind debt, followed by Millennials and Baby Boomers.