Assuming both parents have died and debts exceed assets, are adult children responsible for the remaining debts?
My parents live in Virginia (USA).
Thanks for your help and please provide any relevant source for information.
2007-02-17 09:02:23 · 8 answers · asked by bowens 2 in Politics & Government ➔ Law & Ethics
Thanks. I didn't think the debts became the children's responsibility. My dad passed away 2 months ago and left my mom with little in the way of assets and lots in the way of debt. She will eventually file bankuptcy, but I am trying to decide whether to use some her life insurance proceeds to buy life insurance on herself. It doesn't sound like it makes a difference as I would only be benefitting the debtors. (I've already asked legal counsel in Virginia about life insurance proceeds. Oddly enough, group term life insurance proceeds are protected against bankruptcy but proceeds obtained under an individual policy are not protected.)
2007-02-17 09:39:32 · update #1
If your parents left an estate (house, car, etc) that has to be sold and debtors paid. If nothing of value was left, then you can contact the companies owed and let them know that your parents are deceased and left no estate. The $$ owed will be written off.
2007-02-17 09:13:37 · answer #1 · answered by Ronnie now 2 · 1⤊ 0⤋
the Estate of the parents is responsible to pay the debts.
Contact a legal service in Virginia if you need any further help. It is against the law for a non lawyer to give legal advice.
2007-02-17 17:05:58 · answer #2 · answered by ? 5 · 0⤊ 0⤋
A person cannot inherit a debt unless they were party to it. For example, if the child was a co-signer.
However, if there's an estate or inheritance then legally the debts would be paid before whatever is remaining is distributed.
So, for example, if the parents had a house, it would have to be sold and the debts paid.
2007-02-17 17:07:16 · answer #3 · answered by FCabanski 5 · 1⤊ 0⤋
I know that the parent's estate is responsible for paying off debts in the event of death, but I am not sure if that responsibility can be legally passed on to their next of kin. I would contact an attorney who specializes in this kind of law.
2007-02-17 17:07:23 · answer #4 · answered by msi_cord 7 · 0⤊ 0⤋
(no)---------- the federal debt act: d-13,co,45637 states that all debts owed by a adult of 21 yrs. or older are the responsible of the source.
2007-02-17 17:30:32 · answer #5 · answered by bigdady1369 2 · 0⤊ 0⤋
why ask total strangers on the internet a question like this?GET LEGAL ADVISE FROM A LAWYER!
2007-02-17 18:06:40 · answer #6 · answered by charlotte q 2 · 0⤊ 0⤋
If debts exceed assets,creditors are S.O.L../;/So are the kids..But I don't think they can attach life ins bene's.Check w/ a lawyer...
2007-02-17 17:12:56 · answer #7 · answered by Anonymous · 0⤊ 1⤋
technically yes but enforcing such a law is frowned upon and you could offer $1 a week. If its refused what can they say you offered
2007-02-17 17:06:57 · answer #8 · answered by froggerty 3 · 0⤊ 1⤋