Saturday, July 31, 2010

What kind of debt transfers from parent to child once the parent dies? Any measure of protection?

I live in the United States


State of California What kind of debt transfers from parent to child once the parent dies? Any measure of protection?
Debts die with the debtor. If you co-signed a loan with your parents, you would still have to pay it, but not any other loans. Any money or property left in the estate would be used to pay off the debts before the estate would be passed on to the children.What kind of debt transfers from parent to child once the parent dies? Any measure of protection?
If you co-signed a promissory note or if you are jointly and severally judgment debtors, you may have a debt after the death of a parent.





Generally, however, a debt owed by a person at the time of the person's death may remain a debt owed by that person's estate. It would mean that heirs would have the inheritance reduced by the amount to be paid to the debtor.





Other than that, I cannot think of any debt that passes to a surviving offspring.

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