that the child has to pay the money for the parent when they dont even owe it?
2007-02-14 11:31:25 · 9 answers · asked by kimaya 1 in Politics & Government ➔ Law & Ethics
Generally, they don't.
If someone dies, the money is paid out of the estate, if any, and the heirs get the rest.
2007-02-14 11:33:45 · answer #1 · answered by American citizen and taxpayer 7 · 1⤊ 0⤋
What happens is that the debt is paid from the parent's estate BEFORE the child inherits the estate. Yes, I think that is completely fair. There is nothing wrong with debts being paid.
I can see that it might be more than just a bit inconvenient if the estate consists of a home that is worth $50,000 and the debt is say, $25,000. The heirs only stand to gain a total of $25,000, but must come up with $25,000 up front. If the residence were sold at auction on the courthouse steps, they would not likely gain anything.
2007-02-14 11:38:46 · answer #2 · answered by plezurgui 6 · 0⤊ 0⤋
I may be wrong on this, but to my understanding the child doesn't have to pay for it. At least, not directly.
When a person dies, all they own in assets (money, land, homes, businesses they might have owned, stocks, and bonds) becomes known as an estate. The estate generally goes to a spouse or the children (unless another benefactor is specified) of the person who died; but only after all that person's debts are paid off. Whatever is left over after that is given to the benefactors and split however the will said it should be split (or evenly between all benefactors if no will is made at the time of death).
If there is nothing left over, no one gets anything; but to my understanding the children aren't responsible for any debt incurred by the person who died. I'm not sure about the spouse however.
Under the law, I understand that a married couple is considered one person. All assets and all expenses/liablities/anything owed belongs to both of them. A spouse is responsible for any debt incurred by the deceased at the time of death (or at least that is my understanding, I'm not a lawyer).
2007-02-14 11:38:42 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You need to check your sources. A child or heir does not incur debt from a deceased parent. The estate does- it will reduce the value or consume the entire estate value, though- so in that way, the child or heir may not get any money from the deceased.
2007-02-14 12:01:46 · answer #4 · answered by Anonymous · 0⤊ 0⤋
They don't. The estate has to repay any outstanding debts. Once all the debts are settled the remainder of the estate goes to the heirs. If the estate doesn't have sufficient funds to pay the debts, the debt essentially goes away.
2007-02-14 12:06:51 · answer #5 · answered by Anonymous · 0⤊ 0⤋
They don't unless the parents had an estate. Basically if you received no money from your parents deaths (other then life insurance) you do not have to pay anything. If you sold their house and made money you have to pay off their debts.
2007-02-14 11:35:21 · answer #6 · answered by MEL T 7 · 1⤊ 0⤋
Um... the child does *not* have to make said payment, assuming we're talking about the United States, that is. If a creditor is harassing you over a decedent's obligations, advise them of this, and that they should refer all claims to the decedent's estate. It may just be that the creditor does not realize the person is dead.
2007-02-14 11:36:00 · answer #7 · answered by trentrockport 5 · 1⤊ 0⤋
cvq is right. The heirs are not responsible for the bills. the estate is. then whoever gets the leftovers, minus uncle sam of course
2007-02-14 11:36:05 · answer #8 · answered by rizinoutlaw 5 · 1⤊ 0⤋
Well dont pay it then. Oh no will it go on their credit report? Seriously though... you gotta take the good with the bad, whoever gets the assets gets the debts also.
2007-02-14 11:47:42 · answer #9 · answered by ChrissyLicious 6 · 0⤊ 1⤋