Dads and debt?

I've always assumed that when a parent dies and they have debt that the kids are responsible for paying it off. Is that true?

If so, is there anything the kids can do to protect themselves when an elderlyish parent begins to accumulate substantial debt -- like $10,000 a month worth of debt expenses?

What if this elderlyish parent is not mentally incapacitated but is a practicing attorney?

Any help appreciated!

First, I'm not a lawyer but my understanding is that the debt liability of any individual falls to his/her estate. If there is not estate (no funds to pay off the debt) then there is no obligation to the heirs unless they've agreed to be responsible for it by co-signing or otherwise establishing themselves as responsible.

0 Replies

Exactly so.

Unless of course you were a co-signer on something.

0 Replies

That's a relief!

Thanks!

0 Replies

Death cancels all debts.

0 Replies

so, since he's going nuts and spending his childrens inheritance, why not ask him for a new car or something?

nothing on payments though, just buy it, ok dad?

0 Replies

I don't want anything from him!

Additionally, I don't think people should worry about leaving their kids an inheiratance. It's their money, they should spend it on themselves.

But in this case, he doesn't have nearly the amount of money he's spending which seems really creepy and selfish and stupid to me. I've never known anyone to do that intentionally.

0 Replies

jeez, I was kidding.

At least you should try to get a microwave or maybe an ipod out of him.

0 Replies

DrewDad wrote:

Death cancels all debts.

No way. I recently spoke to man who is selling his house to pay for his deceased wife's extensive medical bills and credit card debt. They can't get to her so they are after him.

0 Replies

Spouses and children are two seperate legal entities.

They cannot cross the generation gap for debts anymore than my parents could be made to pay my debts once I am an adult.

Not a lawyer either...

RH

0 Replies

If she were co owner of the house, I'm sure they could go after her portion. Likewise, he just may have co signed on the credit cards.

Hmm. Wonder if the estate could file bankruptcy, with a homestead exemption on her part of the house.

0 Replies

roger wrote:

If she were co owner of the house, I'm sure they could go after her portion. Likewise, he just may have co signed on the credit cards.

Hmm. Wonder if the estate could file bankruptcy, with a homestead exemption on her part of the house.

I assume you're addressing my post Roger. I'm sure they were financially intertwined like any married couple. I'm not close enough to the person to give advice, but it was a sad case of multiple tragedy - first her illness, then the expenses, then her death and then the collection agencies at his door.

0 Replies

I was, Green Witch. Sounds like a mess, alright.

0 Replies

yeah, a married couple are responsible for each others debts, but children are not.

0 Replies