Whether from credit cards, personal loans or student loans, most people have some amount of debt to their name when they die. It’s helpful to have a plan in place to ensure you won’t pass on debt to your descendants.
Generally speaking, if a person dies with debt–but with sufficient assets to cover the debt–the assets will need to be liquidated to pay off the debt before anyone can inherit anything. If that same person does not have the assets to cover the debt, the situation can become complicated very fast.
Credit card debt usually dies with you if it is in your name. However, your spouse may inherit it if he or she is a co-signer on the card. If you have mortgage or auto debt, your loved ones will be fine as long as the person who inherited the assets can make the payments. If they cannot, the assets can be foreclosed on.
If you have a loved one in the hospital, be aware that any documents you sign could also be binding financial agreements. One of the easiest things to do to help protect your loved ones is to have a strong financial plan in place in case your time comes earlier than expected. Contact the financial planners at FCG today to get started.
The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete. Any opinions are those of Financial Consulting Group and not necessarily those of Raymond James.
