Inheriting Parents' Debt

[Desdinova]

This is a very real issue for me. My father has accumulated a fairly large debt due to his gambling. I realize I'm probably not going to get a damn thing for an inheritance... except tens of thousands of dollars of debt.

If my father were to die first, my mother would have to deal with it. She'd either have to sell the house to pay off his debt, or declare bankruptcy.

Now, if my mother were to die before my father, he'd probably move into a senior citizen's home, sell the house, and put the money into a slot machine hoping to win the big one. He'd most likely ignore the debt he has already accumulated.

Then, when he dies, I inherit his debt. I really don't feel that I should have to pay for his stupid ass mistakes.

Have any of you ever dealt with, or are dealing with this situation? What are some of the possibilities to avoid inheriting this 5hit plus paying for the damn funeral?

Hell, I'd be happy just burying him in an irrigation ditch somewhere.

Just as a side note, neither of them have living wills.

 

[The Bad Ass Canadian]

I would honestly talk to a lawyer about this. Just ask around and get some real advice. I don't think his debt should be your problem.

I've never thought that inheriting debt were possible. Isn't that what life insurance is for?

 

[Abbott]

You can't inherit debt.

Sometimes, a younger generation may feel that it's the right thing for them to pay off debts of their parents at death, but it's not required.

Of course, I don't feel that way, and apparently neither do you. The good news is that we don't have to pay it if we don't want to. The only person required to pay a debt is the person who's name is on the debt.

My paternal grandmother died in November. She was terrible with money and thus only had about $1,000 left in her checking account, and a P.O.S. motorcar that I wouldn't give $100 for. My father simply took the $1,000 for himself.

Since his mother was dead, her mail was being forwarded to him. He received a letter from what was apparently her credit card company. It turned out that she had a $7,000 unpaid balance. My father simply wrote them a letter that basically said that she was dead and that there was nothing left (since he took what little money she had left before learning of her debt).

The only thing that creditors can get from someone when they die is their estate. The idea is that after all debts, the beneficiary gets whatever is left, if there's anything. The creditors cannot go after the debtor's descendents, simply because the descendents are not the same person as the debtor.

That help?


Ben

 

[Desdinova]

That helps very much, Ben! Your input is much appreciated!

In other words, get my parents to sign their house over to me before they die

 

[cave dweller]

debt.......

Hey,

You will not be stuck (with their debt) when they pass away.

The key is to 'hide' any and all assets before they die.

cave dweller

 

[tristan22]

Also, never sign anyone into the hospital.........even if it's a relative. You will be stuck with the bill, if the patient doesn't pay!

 

[diablo]

Am I responsible for my mother's debts?


QUESTION:


My mother passed away quite recently. I've been taking care of her house, and notice that credit card bills and so forth are starting to pile up. Who's responsible for these? When I notify the creditors of her death, will that make me responsible?


ANSWER:


Your mother's debts should be paid with the property in her estate -- that is, the property she left at her death. You have not inherited these debts. However, if you inherit property that is collateral for a debt -- for example, a car that is not paid for or a house with a mortgage -- the debt comes with the property.

http://www.nolo.com/article.cfm/cat...F5EBD-4FC7-488B-A7841D21F9256065/309/253/QNA/

No offense, but the fact that you're 28 and didn't realize that you can't inherit your dad's gambling debts doesn't speak very well of your financial knowledge. I'd really recommend you bone up on the subject before you make a serious mistake one day...

 

[penkitten]

dont ever sign anything especially at a hospital or drs office until you read it because thats a way they can try to make you inherit some debt for one of your parents.
really, call an attorney and find out what you can do.
i dont think you can really be punished for anothers persons debts however some places will make you think that you are so you will pay it.

 

[Desdinova]

No offense, but the fact that you're 28 and didn't realize that you can't inherit your dad's gambling debts doesn't speak very well of your financial knowledge.

The thing is I've never had to deal with any death related issues, nor has any of my family or friends. It's something I've never thought about until recently.

I'm honestly surprised that you'd post something like this, considering many on here don't lose their virginity until their mid 20s. Now, that doesn't speak well of their sexual experience, does it?

There's a starting point for learning everything, even if it's past the age that everyone considers "mature" or "experienced".

 

[backbreaker]

i just took out a life insurance policy on my parents, both of them... Costs me about $125 a month, being both my parents are in their early forties and very healthy, but when / if they are gone, I get 400k to take care of any expences... i.e my mom pays for my grandmothers bills, and if she passes away I want to be able to do the same without dipping into my pocket