"What happens when a person who owes you money dies? Can you recover from what they own, or does it go to their heirs?" ... it primarily depends on what they own and how title is held... but here are some basic guidelines to take note of first:

One of the primary reasons for creating and executing a Trust is to ensure that your  legacy is protected and your assets are passed to your chosen heirs after you pass, efficiently and inexpensively. While some people are leery of working with attorneys due to potential costs involved, attorneys are much less expensive now