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The Debt of a Deceased Loved One
When a loved one dies it is never a good thing. But that love one may also be left with debts as well. Right after the death is never a time to think about your relatives financing, but it will come into the conversation. Who is responsible for the debts left behind? The loss of the love one is bad enough. But it is also not fun to be stuck with debt. So then, who is responsible?
Debt After Death
Of course you have all heard that when a person dies they will leave behind a list of people who will receive their estate. These people are the beneficiaries. There will generally be detailed on who will receive what, and how it will be divided up amongst them. People will always worry if the debts are part of the estate. Debts can be anything dealing with credit cards, car payments or unpaid bills.
So whether or not you have to pay off debts for your deceased loved one really depends on a few things. If you are left with medical bills or credit card bills then you will more than likely have to pay off those debts. But, if you are only a secondary holder for bank accounts or credit cards then you may not be liable. When you are a joint holder that is when you will more than likely have debts to pay.
If you guarantee any payments on loans or bills then you will be responsible. But this is only if you had a hand in passing the guarantee. You will then have legally signed on with the state, which means you will have to be the one to assume responsibility. This is another catch you need to watch out for.
Know What You and Your Loved Ones Are Getting Into
It is possible that you will have a claim filed against your loved one if they die. This is sometimes done instead of the creditors actually coming to you directly. Often times payment can be taken straight from the estate. So, in a way, the relatives of the deceased will be left with less then they originally planned. Hopefully the debts were not so large that nothing remains afterwards, which has been known to happen on occasion. But like was states earlier, if you did not sign on as a guarantee, then you will probably have nothing to worry about.
You can also be protected by insurance. That is why you need to pay attention to any insurance plans that become available. Because it is important to help your family after you are not there to protect them any longer. You need to make sure that debts can be covered by that insurance. So just pay attention to any debts that may be coming along or currently be present. That way you can protect your relatives from having to possibly pay. Plus, on the hand, you can protect yourself from having to pay anything as well.
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