My fiance's mother owns a house and 3 rental properties. She has refinanced many times and is currently upside down on her properties because of decreasing home values. My fiance is a beneficiary of hers. Will he absorb her debt if she passes away?
He will not be responsible for any outstanding debt but ofcourse he won't receive the upside down properties and the non upside down properties may have to be sold to pay off debt.
Also this assumes that your fiance has not co-signed or signed a personal guaranty on any of the debt.