Good choice. Tough to swallow but good choice.^^

Totally off topic and irrelevant to OP.

So if an immediate family passes away with debt, does the debt inherit to his/her family?

Life insurance will cover that person's debt? Otherwise the debt will be written off?

From what I understand the deceased's Estate is suppose to take care of debt, ie: owns property, vehicles has money in the bank ect..... Life Insurance doesn't cover the debt unless it goes to the estate. The debt would only be written off if there is no way to collect it. The family has nothing to do with the debt unless they have joint financial interests or a vested interest in the estate. Again, the estate would pay the debt it wouldn't transfer to family members.

OT but how would the bank even know that the deceased is in fact deceased? Is it a legal liability that the family must notify the bank? If the debt has nothing to do with you and there are no assets to seize...

You should notify the bank, but I don't think you NEED to.

Family member passed over a year ago and the bank account is still open with a balance.