2006-07-07 02:26:48 · 10 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
All....I'm asking about debts, not assets. Assume that this person has no assets and only debt.
2006-07-07 03:58:26 · update #1
Agree with the state by state differences. In ohio the person's assets, IF ANY, go through probate court. This ensures the outstadning bills get paid. If there is no or not enough assets to the the debts off the estate can then be sued to recover the money from the estate or spouse or other party down the line. Depending on what the debt is, it might just be dismissed though I wouldn't count on it. A lot of what exactly the debt is and what state you are in needs to be answered for the best response on a message board like this.
2006-07-07 02:37:05 · answer #1 · answered by BBQGuide 3 · 0⤊ 0⤋
Regardless of whether a person dies with or without a will, an estate has to be opened with the Probate Court. An executor is appointed by the court to gather assets and make a report to the court. The executor has the power to pay debts and generally do anything the decedent could have done if still alive. All of this is done under court supervision. Unknown creditors have a chance to file a claim with the court. Usually some type of notice must be published in a local paper giving creditors notice that claims must be filed. After the time has expired, the remaining assets of the estate if any, are distributed in accordance with the intestacy statute of the state where the estate was opened. Keep in mind that some types of assets may not have to be considered as part of the estate. A home held as a joint tenancy with right of survivorship would go directly to the survivor. Life insurance proceeds would go to the beneficiary without being subject to creditor claims. Go to the courthouse and they will get you started.
2006-07-07 09:40:27 · answer #2 · answered by spirus40 4 · 0⤊ 0⤋
The answer may be different in different countries and if you have a real situation you should contact a lawyer. Generally a person's debts must be paid out of their estate (the assets of the person remaining when they die) whether or not they leave a will. Even if your will leaves your assets to someone, your debts must be paid out of your assets before that person gets anything. If there aren't enough assets to pay the debts, the debts go unpaid. Family members (at least in the U.S.) are not usually legally responsible for the debts unless they signed something agreeing to be liable (like co-signing on a loan or lease or signing a guarantee).
2006-07-07 09:37:12 · answer #3 · answered by mtaylo1 3 · 0⤊ 0⤋
It all depends on what kind of debts they are. Credit card debts die with the person because they're unsecured. But a car loan, or anything that's secured doesn't get automatically wiped out with the death.
As for who's responsible for those secured debts, it's generally up to the probate court. Probate is the process of deciding who gets what, who's owes what, and is used when there's no will. But there are fees that come directly out of the estate, and if the estate doesn't have enough to cover, then surviving relatives will have to pay the difference.
I suggest having a will and avoiding probate!
2006-07-07 12:29:23 · answer #4 · answered by msoexpert 6 · 0⤊ 0⤋
Usually, even without a will, a persons assets will go to their spouse. If no spouse, to their children. If no children, to their parents. If no relatives at all, the estate goes to the state and they distribute money for outstanding debts. I don't know where the leftovers go.
2006-07-07 09:31:06 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Generally, debts die with the person. If there is a mortgage on a property that may still attach to the property. However, generally the death of a party ends a contraced debt.
2006-07-07 09:42:00 · answer #6 · answered by DaddyBoy 4 · 0⤊ 0⤋
All assets will go to the spouse. If no spouse, to the children. If no children, to their parents. If no relatives then the estate goes to the state and they distribute money and keep whats left to pay taxes.
2006-07-07 10:30:53 · answer #7 · answered by E.E.I I 1 · 0⤊ 0⤋
If that person is not married, and did not have any bills in any other name than theirs, then no one is responsible. However, if the person owned a home or property, free and clear, the 'creditor' (the one money is owed) could find out about it and put a lien on it. That is the short answer. This could get quite involved if there is property out there...
2006-07-07 09:34:57 · answer #8 · answered by dd1298 1 · 0⤊ 0⤋
Anyone that has signed a lease or loan agreement with the deceased is liable.
2006-07-07 09:31:40 · answer #9 · answered by GRUMPY1LUVS2EAT 5 · 0⤊ 0⤋
thats what i always ask
2006-07-07 09:29:39 · answer #10 · answered by arigont 2 · 0⤊ 0⤋