Have you ever wondered what happens to your debts after you die? Do they disappear, transfer to others, or settle into a form of debt purgatory? Depending on the type of debt and where you live, all of those options are possible.
Generally, your debts live on through your estate that is created after your death. The executor of your will is charged with paying off those bills using the available assets, in the order determined by law. Any assets that remain will transfer to your heirs in accordance with your will – or, if you left no will, they will be distributed according to state law.
If debts exceed assets, no money will be available to pay remaining creditors. Options for creditors at that point depend on a number of factors.
With respect to credit card debt, the first question is whether the debt was on an individual or joint account. For joint accounts, the surviving pa...
from MoneyTips https://www.moneytips.com/when-you-die-do-your-debts-die-too
No comments:
Post a Comment