Settling the affairs of a loved one who has passed on can be difficult. Family members are often left to make important financial decisions on behalf of their deceased relative during this already emotional time. These decisions often involve whether to repay any debts owed by the debtor after death – including credit card debt, student loan debt, mortgage loans, and other financial obligations. Relatives, however, are generally not responsible for paying the debts of the deceased – and creditors are sometimes left to swallow the cost of the debt, despite creditors who would make you believe it is your obligation to repay the debt. Are You Responsible for the Debts of a Deceased Relative?From an estate administration perspective, debts after death are generally repaid through a person’s estate – whether or not there was a will – and relatives are not responsible for paying off debts that were not jointly owned at the time of the debtor’s death. When a person dies, his debts often die along with him. Whether you are responsible for repaying the debts of a deceased relative depends on whether you owned any part of the debt at the time of the debtor’s death, or have received substantial benefits from the debt itself (as in the case of a loan used to pay your personal living expenses.) What Happens To Credit Card Debt After You Die?Credit card debts belong to the credit card account holder and relatives should not have to pay for their deceased family member’s debts unless they co-signed on the loan or it is a debt from a joint account. However, those who live in community property states, where property and assets acquired during a marriage are considered jointly owned, may be liable for the debt. If a person believes they are being unfairly contacted, or even harassed, by overzealous debt collectors, it may be wise to speak with a local debtor – creditor attorney to help you determine your rights under your state’s law. What About The Mortgage After Death?Similar to credit card debt after death, mortgage debt belongs to the borrower of the mortgage loan. If a spouse was named as a joint owner on the loan, then he or she would be liable for the loan debt after the death of the debtor spouse. Just as with the deceased’s unsecured debts, a note associated with a mortgage is not forgiven simply because the borrower dies. Instead, the surviving spouse can decide whether to continue to make payments on the note – and thereby continue to live in the home – or sale the house to pay off the existing loan. Life insurance policies are not part of the estate, and proceeds from life insurance policies go directly to the named beneficiary. Beneficiaries are therefore not obligated to use the proceeds to pay for any remaining debts the debtor may have after death. Free Consultation with a Probate LawyerWhen you need help from a probate lawyer, call Ascent Law for your free consultation (801) 676-5506. We want to help you.
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Child Support Enforcement in Utah How Adultery and Infidelity Relates to Divorce in Utah 180 Day Waiting Period to Refile Bankruptcy After a Dismissal via Michael Anderson https://www.ascentlawfirm.com/debts-after-someone-dies/
0 Comments
Leave a Reply. |
ABOUT USDivorce and Bankruptcy Lawyer in UT. If you need divorce and bankruptcy lawyer, child custody, adoption or family law attorney who does child custody, father’s rights, divorces and bankruptcy – both chapter 7 bankruptcy and chapter 13 bankruptcy law that cares about you, your family, your case, and is aggressive, call 801-676-5506 now for a free consultation. divorce and bankruptcy in Utah can be tough, so you need a smart divorce and bankruptcy lawyer who can help you today. Call 801-676-5506 for the top divorce and bankruptcy attorney in Utah now. Archives
April 2017
Categories |