Death and debt question
 

If your parents die with debt, are you as their child obligated to pay it off?

Not including say the car or house, but things like credit cards, store cards, health bills, and other miscellaneous debts?

Yes and no. If the result of debt is part of the estate, it needs to be paid off. However, if it is not, then debt doesn't transfer. It's more complicated than that though - depends on what kind of tax you are paying, depends on what the estate is... depends on the state, and depends on each type of debt and the timeline of its acquisition. If this is a serious question, then it's well worth it to spend a few hundred dollars talking to an estate attorney and CPA.

No and Yes. If they had no assets and leave nothing to you then you will owe nothing. However, if they left you real estate, money, etc but have debt, creditors will get those assets if you refuse to pay the debt, or can with legal action.

Or he could just use wikipedia.

That's a brilliant suggestion. Wikipedia is certainly the resource you want to use when legal issues are on the line.

Wooosh.

Thank you and Gnius. Basically the answer that I was seeking.


To expand on it a little bit lets say this.

Parents do leave assets, but also leave debt. Lets say that the debt outstrips the assets. Im sure this will be a yes no answer? but once all the assets are gone, do the kids foot the bill even if they don't want anything, (house, car, etc)

and

Parents leave $50k in the bank and a house with X amount of mortgage with no other debts. Can you just bounce with the $50k and let the bank take the house back or would the bank get the $50k, plus the house if you don't want to finish paying the mortgage off?
Im sure this might too be a yes no answer depending on where one lives I guess.

If you try to do the above, you'll go to jail.

if the debt is more than the value of the property and liquid assets, then they will get everything. If there is a 75k mortgage on a 200k house with 50k in liquid assets, then they get the assets, you then sell the property to cover the remaining 25k and get to keep the remainder or pay off remaining 25k from your own funds and keep the property.

Pay off mortgage with cash, if you would still have cash left over or at least break even.... Sell house!

-PROFIT!

That being said, I find it very distasteful when companys try to collect burial and medical bills from family memebers. I tell my family just bury me in the backyard with Blacky. I am just waiting for the day to have to tell one of those ****ers where to stick it.http://www.discussworldissues.com/fo...ilies/mad1.gif No one should have to pay to be born or die. Neither are anyone's decision.

Thanks for the fast replies guys. Got the answers which I needed.

Dont exactly know how it works in other countries, but here (Netherlands) you can simply decline to accept their inheritance. Tho that incudes everything they left behind.

Yes, it would be really stupid - negotiate to continue with the mortgage repayments and either rent it out or sell it and profit from the difference between the debt and return.

Your parents should have term life assurance on the mortage. It only costs a few £ or $ a month and means that the mortgage is taken care of should you croak.

What for? Whether you decline or accept your inheritance their creditors are still going to get their cut, and if you decline you end up with nothing.

Depends how their capital gains tax/inheritance tax works. Whether it's worked out after fees/deductions, or gross maybe? It could actually cost you more than the inheritance is worth?

I imagine you'd only decline if the debts outstrip the assets....