As long as the loan is wholly in his name, no. This is also true for things like credit cards. If someone dies and there is anything to pay, the credit card company will normally 'write off' the debt, unless it is for some huge sum. Which brings us to the next point. If there is no money in the estate, there is no money to pay inheritences etc. You just ignore it. However, if, say, there was �1000 willed to different people and only �500 available, everyone would be paid in proportion (unless someone started contesting the will, when it all gets very messy and the solicitors make a fortune!)