2006-09-05 13:04:03 · 7 answers · asked by speech1 2 in Business & Finance ➔ Other - Business & Finance
if so, is there a way around that?
2006-09-05 13:04:43 · update #1
but how do they track the recievers of the estate down.....cant you just move the money out of the persons estate before they die?
2006-09-05 13:08:17 · update #2
Usually all debts - unsecured or otherwise - are paid prior to the estate being settled. The executor of the estate (which is typically a lawyer with an estate of any credible amount) pays everything up front before the heirs receive their portion of the settlement.
Unless you are the executor, you won't have to settle any debts. And as an heir, you should never have to pay for these debts out of your own assets.
2006-09-05 14:04:54 · answer #1 · answered by CassandraM 6 · 0⤊ 0⤋
IMy father died owing over $80,000 in credit card debt and a home with a mortgage left of $40,000. I was his executrix and the home was left to me...I rent it out to pay it off. Now the credit bills were paid until his checking account went dry, only two months of payments. I contacted the four credit cards and sent them the death certs and all the other information they wanted. Each company wrote off the debt. (a blessing) However, having a debt written off, makes the deceased have income. The credit companies sent the info to the government and I was sent 1099-C's, I think, which is to be filed with income tax. I didn't do that. I haven't been caught yet, and I hope I won't be. But legally, you have to file a federal return for the deceased.
If there is money left in the estate, you are supposed to pay debts with it.
2006-09-05 13:13:39 · answer #2 · answered by rrrevils 6 · 0⤊ 0⤋
Unless the cards carried specific credit life insurance which is optional, the estate is responsible to pay the balance plus accrued interest in full. call the info number on the back of the card for specific information
2006-09-05 13:06:28 · answer #3 · answered by B 4 · 0⤊ 0⤋
Not unless they're named on the credit cards, but the debt will come out of the deceased person's estate.
2006-09-05 13:07:01 · answer #4 · answered by Blah 6 · 0⤊ 0⤋
You could do that but you should know that any funds which are disbursed by anyone up to a year before death or bankruptcy will be liable to be repaid. You can also be liable for fraud if you knowingly take action to defeat creditors.
2006-09-05 13:18:01 · answer #5 · answered by Anonymous · 0⤊ 0⤋
yes you have to pay it out of the estate . and no there is no way out of it.
2006-09-05 13:06:45 · answer #6 · answered by purple 6 · 0⤊ 0⤋
yes if the person has assets the debt would paid from them. if not the debt dies with him or her.
2006-09-05 13:08:24 · answer #7 · answered by mescalin57 4 · 1⤊ 1⤋