Liabilities Guide

What are liabilities?

Liabilities are your financial obligations: money you owe to lenders, credit card companies, government agencies, or other creditors. In estate planning, recording your liabilities is just as important as recording your assets. When you pass away, outstanding debts are typically settled from your estate before any remaining assets are distributed to your beneficiaries.

By keeping an accurate record of your liabilities, you help your executors understand the full financial picture and ensure your estate is administered efficiently.

Where should I record my debts?

Different types of debt belong in different areas of Expat183:

• Liabilities: Personal mortgages, personal loans, credit cards, student loans, tax debts, buy now pay later, and other personal financial obligations
• Business Liabilities: Loans through a registered company (not sole trader). Business debts are tracked separately in the business assets section
• Property Records: Mortgage details can also be noted on the related property record for cross-referencing

Country-specific liability types

Some liability types are specific to certain countries. Every type below appears in the liability type list regardless of the country you select, so pick the one that matches your debt:

Key terminology

Understanding these terms will help you manage your liabilities effectively.

How to add your liabilities

Recording your liabilities ensures your estate administrators have a complete picture of your financial obligations.

1. Go to Asset Management → Personal Asset Tracker → Liabilities
2. Click "Add Liability"
3. Enter the liability name, type, and creditor
4. Add the current balance and payment details
5. For secured debts, describe the collateral
6. Record co-signers or joint liability holders if applicable
7. Upload your loan agreement or recent statement
8. Save the liability to your portfolio

Document checklist

Keep these documents accessible for each liability:

• Loan agreement, mortgage deed, or credit card terms
• Most recent account statement showing the current balance
• Direct debit or standing order confirmation for repayments
• Details of any co-signers, guarantors, or joint holders
• Insurance policies linked to the debt, such as mortgage protection

Liabilities and your will

Understanding how debts interact with your estate plan is essential. The treatment of debts after death varies by jurisdiction, but some general principles apply in most cases.

• Debts are typically paid from the estate before assets are distributed to beneficiaries
• Joint debts usually pass to the surviving joint holder, who becomes solely responsible
• Secured debts follow the collateral asset, so a mortgage follows the property
• Life insurance can be designated to cover specific debts, protecting your beneficiaries
• The order in which debts are repaid from the estate varies by jurisdiction
• Some debts (such as UK student loans) may be written off on death

Should I record all my debts?

We recommend recording all significant debts: mortgages, loans, credit cards with outstanding balances, and any debt with a co-signer or guarantor. Small everyday debts, such as a monthly mobile phone bill, are generally not necessary unless they represent a significant obligation.

What if my liability type isn’t listed?

Select the closest equivalent from the available options, or choose "Other" and describe the liability in the private notes field. The system supports a wide range of liability types covering debts from multiple countries.

Are my beneficiaries responsible for my debts?

In most jurisdictions, beneficiaries are generally not personally responsible for your debts unless they are joint holders or guarantors. Debts are usually settled from your estate first, and only the remaining assets are distributed. Joint debts typically pass to the surviving joint holder, and secured debts normally follow the collateral asset.

What happens to student loans when I die?

This depends on the country and loan type. United Kingdom government student loans are generally written off on death, and United States federal student loans are usually discharged, while private student loans may still need to be repaid from the estate depending on the lender’s terms. Australian HECS-HELP debt is also typically written off. Treatment can change, so confirm the current position with the lender or a professional.

Should I record the mortgage on my property separately?

Yes, recording the mortgage as a separate liability gives your estate administrators a clearer picture of the outstanding debt. You can also note mortgage details on the related property record for cross-referencing. The liability record is where you track the balance, interest rate, and repayment details.