2006-08-15 12:35:16 · 12 answers · asked by lazy_magnet 2 in Business & Finance ➔ Personal Finance
The spouse is responsible for debt. If there is no spouse, debt is settled by the assets of the estate. This includes mortgages, loans, credit... anything owed to anyone that has proof of money owed. Anyone co-signed with an agreement to cover debt is still responsible.
The assets of the estate are liquidated to settle all debt.
Only the remaining assets are inherited by those named in the will. The deceased assets include all property: land, real estate, vehicles, insurance, anything of value.
If the value of the assets of the estate are less than the amount of leins (amount owed) on the estate, a court will decide who gets paid what. In that case, there is NOTHING to inherit.
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2006-08-15 13:04:09 · answer #1 · answered by Yinzer from Sixburgh 7 · 0⤊ 0⤋
The executor of the estate must pay all legitimate debts before any assets go to heirs. If the deceased assets will not cover the debts, the creditors cannot collect from relatives. One exception is certain transfers 'in anticipation of death'. This basically means, if you give something away shortly before death, the creditors may be able to reclaim that item.
2006-08-15 12:55:37 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
It comes out of your estate. I'm not sure your family is liable if the estate doesn't cover it. However, if part of your estate includes the family home, etc. your creditors do have the right to insist that your non-liquid assets are sold to cover your debts. Of course, I'm not a lawyer....
Best of Luck!
Anne
2006-08-15 12:44:57 · answer #3 · answered by amkornele 3 · 0⤊ 0⤋
I believe your estate is liable for bills. So, before anything goes to those mentioned in your will, you bills will be paid off. I do believe, however, that if your bills are larger than your estate, the companies do take a loss. Your parents aren't responsible for bills they didn't accumulate.
2006-08-15 12:41:51 · answer #4 · answered by westernndguy 4 · 0⤊ 0⤋
it's the responsibility of the family to pay the bills out of the estate of the deceased. if there is no estate, then a copy of the death certificate must be sent to the companies to show that they have passed away. believe me, my husband and i went through this a year ago. what a fieasco that was.
2006-08-15 12:41:20 · answer #5 · answered by wilderone74 4 · 0⤊ 0⤋
Unfortunately, yes. Your family is responsible for settling any outstanding debts that you might have at the time of your death and that includes taxes. The IRS still knows how to stick it to you even after you're 6 ft under.
2006-08-15 12:45:24 · answer #6 · answered by carpenterjs16 2 · 0⤊ 0⤋
They usually carry a life insurance within their fees that cancels any oustanding balance. You might want to check all the contracts because they may differ depending on local regulations.
2006-08-15 13:09:27 · answer #7 · answered by Gabaos 2 · 0⤊ 0⤋
They reposes enough of your stuff to pay for it.
And the rest (if you don't have a will or family) probably goes to a good will.
2006-08-15 12:43:06 · answer #8 · answered by Bob Chaves 2 · 0⤊ 0⤋
yes. the beneficiary of your estate is responsible for all of your debt and must file your final tax return. wilderone74 stated it much better and is correct!!
2006-08-15 12:42:27 · answer #9 · answered by justnotright 4 · 0⤊ 0⤋
claims can be filed against the decedent's estate, if there is one, if not, no claim can be made against survivors, unless there was a co-signer...
2006-08-15 12:41:59 · answer #10 · answered by emmylou1951 2 · 0⤊ 0⤋