Here’s a legacy you might prefer not to pass on to your loved ones: your credit card obligations. These debts do not vanish after you’re gone.
As reported by Yahoo Finance, “What Happens to Credit Card Debt When You Die?” It is estimated that three out of every four individuals leave this world with some form of debt.
As a result, the executor of your estate will be tasked with settling the outstanding debts, which will be taken from an inheritance. The potential inheritance could be greatly reduced or even eliminated if you have a large amount of debt. Knowing your rights and speaking with an estate planning attorney is crucial if you fear your family might inherit your financial burdens.
For a free legal consultation, call 800-562-9830
The rules vary by state. In nine community property states, any debts taken on during a marriage belong to both partners, even if only one person is named on the account. These nine states include: Texas, Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Washington, and Wisconsin.
If there is enough money or assets in the estate, the debts are paid off from the estate before any inheritance is given to heirs. The debts will usually go unpaid if their estate has no assets.
For survivors of deceased loved ones, such as family members, you’re not responsible for their debts unless you share legal responsibility for repaying as a co-signer, a joint account holder, or if you fall within another exception.
If you’re not responsible for a debt, debt collectors may still contact you if you’re a surviving spouse or oversee the estate, but it’s illegal for debt collectors to suggest you’re responsible for paying from your own money. It’s also always illegal for them to harass you about paying the debt.
Speak with one of our Elder lawyers today!
The family or executor of the estate should consult with an attorney to manage the deceased’s debts and estate properly. Marc Whitehead & Associates is here to help you! Contact us at (800) 562-9830 to request an appointment.
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