Understanding Unretirement (E-book)

Here’s what you need to know about dying in debt.
There are three types of creditors: preferred creditors (such as Canada Revenue Agency); secured creditors (like the bank that’s holding your mortgage loan); and general or unsecured creditors (everybody else). Preferred creditors get paid first, followed by secured creditors and then unsecured creditors.
All the creditors have to be paid out [of your estate] first before any beneficiaries are paid out. So, does it matter if you die in debt? It does to the extent that your goal is to leave something for the beneficiaries you’ve named in your will.

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