When your mom or dad passes away, there are a million details – large and small – that demand your attention. One of the issues that often arises is who has a legal obligation to take care of a deceased parent’s final debts. The bottom line: unless you signed up to be a joint debt-holder, you, as your parent’s child, are not individually responsible for paying their debts. Here’s how it actually works: When the Assets Outweigh the Debts The assets left behind by a deceased person are … [Read more...] about Are You Responsible for Your Deceased Parent’s Debts?
Will your life insurance policy have to be used to pay off your final bills and debts? The answer to that question depends, in large part, on the beneficiary designation of your policy. Policy Payable to Estate There are two ways for your life insurance policy to be paid to your estate. First, you might actually designate your estate as beneficiary of your policy. Second, you might designate a person as beneficiary who dies before you. If this happens, and you don’t appoint a new beneficiary … [Read more...] about Life Insurance and Final Bills: How It Works
As a general rule, you can’t pass on your individual debts to your loved ones when you pass away, but what about joint debts or loans for which a loved one has co-signed? If you pass away, responsibility for paying these debts will fall to the person who signed for the debt along with you. And if this person is your spouse or one of your children, the consequences when you pass away can be devastating. The sad fact is that when a loved one is left on the hook for a credit card or loan … [Read more...] about You Have a Plan for Your Assets, But What About Your Debt?