Can I be responsible for my deceased parent’s debts?

In New Zealand, you are not personally liable for a deceased person's debts simply because you are their child or next of kin. Debts are paid from the estate's assets by the executor or administrator, in a set order of priority, including funeral and administration expenses first, before beneficiaries receive anything. If the estate does not have enough assets to pay all the debts, the estate is insolvent, and creditors may not be paid in full, but this does not transfer the shortfall to family members unless you had personally guaranteed the debt or held the debt jointly. Notify creditors of the death, and they should direct claims to the estate. If you are the executor, do not distribute funds until debts are addressed, as you could become personally liable if you distribute prematurely.