I just read an interesting MarketWatch article by Karen Carr and thought I’d share it.
The article covers these main topics below:
- Who has to pay the debt?
- What if the estate is broke?
- When family members must pay
Excerpt:
"When someone passes away, their estate — or cumulated assets — is generally responsible for paying any outstanding debts. It’s up to the executor of an estate (the person who has been deemed legally in charge of taking care of the estate after someone passes away) to see that debts are paid.
Most debts must be paid back, provided there is enough money in the estate. The types of debts that must be paid back include credit card debt, car loans, private student loans (federal student loans are discharged at death), home equity lines of credit, and mortgages.
If you owe money on a mortgage at the time of your death, things can get a little complicated.”1
Click the link below to read full article:
http://www.marketwatch.com/story/what-happens-to-your-debt-when-you-die-2016-03-14
1. Source: MarketWatch Online Article by Karen Carr
http://www.marketwatch.com/story/what-happens-to-your-debt-when-you-die-2016-03-14