How do you not pass your debt on to your spouse upon death?

Question

Im in poor health and in a lot of debt for medical bills. I also want to get married, but I know I cant pay off the hospital debts any time soon, and I dont want my future wife to have to be left with the debt if I die. My life insurance is only $25,000 which hardly touches what I owe... any advice?

Answer 1

Debt does not pass on automatically to the spouse or the family upon a person's demise. Especially if the spouse has never been a party to the debt or has agreed to be indebted. You can simply get married by maintaining your finance separately and do not allow your wife to sign on any debt such as credit card etc jointly. If you have bank accounts, they should be in "joint tenancy with the right of survivorship". Those kind of assets will be able to by pass probate, transfer directly to your wife and cannot be attached by your creditors. You should consult a CPA or a tax attorney before you get marry. With to days medical advances, you may be counting yourself too short. But for a peace of mind, plan your finance in advance and it will be one less item to worry.

Here is an article that may shed some light abiut the subject:

http://www.winstonandwinston.com/art%205%20deceased_persons.htm

Answer 2

There is no financial benefit in getting married, and seemingly is just the opposite. While love and marriage are important, I would think financial ruin is not the way you would want your new marriage to start out.

If I were you, I think your fiancee will agree, be married in the heart, but not on legal papers.

You probably have no hope of getting another insurance policy to ease those burdens.

Unless you can find something more positive than declaring you love before God, family and witnesses. I would just be engaged.
Love is stated, but no financial obligations are tied to this, unless you are commonlaw husband and wife, and then you need to check with an attorney.

Answer 3

Deth Tax is gonna getcha! Transfer $4999 to an Offshore Bank,I aint even sure that works anymore, but it used to. Trick is to transfer the sum or amount less than what the FBI,CIA,DEA and IRS force the USA Banks to report. Paper money has no value anyways, so buy land in a place where the goverment is stable. File the deeds under 3rd cousin twice removed on the lovers side of the agreement and hope for the best.

Answer 4

In Canada, your spouse cannot inherit your debts on your death unless BOTH of you are legally responsible for the debt in life.

If you die with your own personal debts, the creditors must go to your estate for payment. If there is not sufficient assets in the estate (ie anything that was in your name only, not jointly held and not in your spouse's name only), then they must write off the debt.

Check with an attorney, or a knowledgeable accountant in your jurisdiction, especially one who deals with estates.

Answer 5

The debt gets passed on I believe, I would take out another life insurance policy

Answer 6

File bankruptcy. Then I think it doesn't get passed on. Check with your local library to see when they have volunteer lawyers come in to give free advice and ask the professional.

Sorry to hear about your health. Don't know you, but I'll send up a prayer. God Bless!

Answer 7

I believe your debt is paid from your estate. If you have no estate, and your future wife keeps everything of hers in her name only, I don't think they are going to go after her. I would make sure to keep everything separate (nothing joint). Also consult an attorney to make sure.

Answer 8

If you are religious why not get married in a service of your faith but don't legally register the marriage. So you would be married in the eyes of God but not in the eyes of your creditors.

Answer 9

stay divorced or separated. that is one solution.