If an american person dies leaving a huge debt behind will the next of kin automatically inherit it?

Answer 1

No... the debt gets paid out of any money in the estate. The next of kin only get whats left after that but they dont get the debt.

Answer 2

The short answer is no. It really depends upon the nature of the debt. If the debt is unsecured (i.e. not tied to any particular asset) then the debt does not pass to anyone else. Examples of this are credit card debts, personal loans, etc.

If the debt is secured, such as a car note or a mortgage on real property, the debt passes with the property. The person's death will not remove the encumbrance from the property, and that money is still owed on the particular property. Next of kin inherit the debt only if they voluntarily take it on by accepting the property.

Answer 3

As pointed out before, the debt has to be paid from the estate of the person. There are some disclaimers to that though. Did you share an debt account with this person? Maybe you were a co-signer or perhaps you were both on a credit card? In those cases the credit company can come after you. If you do not share accounts like that then the credit companies cannot come after you to pay the debt. The debt has to be paid from the estate of the person who died.

Answer 4

Probate will have the executor turn in the values of any property, 401Ks, savings account, etc etc to determine how much the estate is worth.

Once that has been established, letters are sent to all the creditors asking for a final statement. If there is enough money in the estate to pay of all the debt, that is handled before family/friends get their inheritance.

If there isn't enough money to cover all the bills, the court determines a percentage to be paid to each creditor. That payment is sent with a letter explaining this is all the estate can pay since the person is deceased and there is only a limited amount of cash.

Answer 5

If, after this individual died, the relatives saved his property contained in the rented abode for a particular era of time AFTER the subsequent month's lease replaced into due, you may want to nicely be held accountable---it relies upon on some elements... IF, the owner had stated some thing like "TAKE some time cleansing out the deceased stuff", then you are not accountable. in case you by no ability spoke to the owner and also you LEFT the deceased property contained in the abode extra then a million WEEK after the lease replaced into due, then cough up some funds for the lease because you probably did have the abode UNRENTABLE so long because the deceased property were nevertheless contained in the abode. often what occurs in those situations is that the relatives immediately is going and retrieves the deceased property liberating up any property that replaced into in the previous rented by the deceased. in case you took your sweet time and pressured this landlord to lose funds because you no one made an attempt to retrieve the valuables, then both the valuables now belong to the owner or you pay the months lease.. What you should have executed is lengthy gone to the owner as soo because the funeral ended (the subsequent day) and perchance you may want to have worked some thing out with him...... If the stuff continues to be contained in the landlords abode ---then supply the negative guy the lease funds and be executed with it...or overlook about the valuables contained in the abode---that's extraordinarily stupid because numerous human beings sock numerous funds away of their properties and can want to you want the owner getting THAT???

Answer 6

The debt will be satisfied from the estate and only what's remaining after the debt is paid will be distributed to the inheritors. From betterbudgeting.com, "If the debts are greater than the assets, then the assets are sold and used to pay as many debts as possible. Secured debts (i.e. mortgage or car payments) come first. Unsecured debts (i.e. credit cards) after. Old medical bills would be unsecured. Any debts that are left after the money runs out would not be repaid and the creditor takes the loss."

Answer 7

Debt is not transferrable in Probate. The only way the debt can be satisfied is as a claim against the estate. That's why NO ASSETS of the deceased should be given or sold until all claims against the estate have been satisfied.

Otherwise, the executor can be held personally liable.

Answer 8

Only if its associated with an asset - like land, housing, etc.

Answer 9

no

Answer 10

NO