Debt Responsibility

In general next of kin is not responsible for a parents or in laws debt after they pass away. Wisconson in a community property state which will make a surviving spouse or a co-signer responsible for a deceased person debt.

No , that only applies to any debt cosigned for or if you were married to the party that has passed away.

In Wisconsin they are not personally responsible for the debt. The estate has to pay off the debts. If the estate cannot do so, they distribute as best they can. If the court approves the distribution, the debts are ended.

The H & W own the property in fee. However, the property is subject to the life estate of the mother. If they wish to sell or mortgage the property she would need to sign the deed or mortgage. If she no longer lives there then they should obtain a release from her for her life estate and the release should be recorded in the land records. Otherwise, only a death certificate will extinguish the life estate as a burden on the property.

He does not have the ability to change the will. However, there are things that can be done to change the distribution. He can elect to take against the will in many states, which would basically mean he gets the same as he would if there was no will. He can also refuse to take his share of the estate.

Answer: In some jurisdictions if there is some proof that the account was made a joint account only for purposes of convenience then the assets in the account would become a part of the estate. Many people leave particular instructions regarding joint accounts in their Wills either stating that the account is to go to the joint owner or that it was only made joint for convenience.

Certainly, the will may specify how to reduce bequests. In most cases it is worded so anything left is split equally.

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The estate has to pay off the debts. If the estate cannot do so, they distribute according to a plan as best they can. If the court approves the distribution plan, the debts are ended.

"criminal offense which occurs when a person unlawfully obtains either money, property or services from a person(s), entity, or institution, through coercion." - Wiki

There is always the assumption is that the wife inherits at least half, if not all, of the husband's assets. But the estate has to liquidate all assets before they can transfer them to the spouse. One way or another, the spouse ends up paying the debt. The spouse has some right in all real property owned by the husband. If the assets are not enough to cover the debt, the real property may have a lien placed against it to cover those debts.

That depends on the state. In most places a wife has an interest in any real property the husband owns. Even if the wife's name is not on the deed. Consult an attorney in your state or jurisdiction.

The best way to locate a lost living trust is through a lawyer. A lawyer will know the proper routes to go through for finding the trust.

It will sort of be your responsibility. It is the responsibility of the estate and may eliminate you getting anything from your wife. Anyone that was also a co-signer on any of the agreements might also be responsible. Consult a probate attorney in your jurisdiction for help.

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The Uniform Trust Code contains provisions relating to liability of a revocable trust for payment of the grantor's debts. The definition of revocable clarifies that revocable trusts include only trusts whose revocation is substantially within the grantor's control. The trust remains revocable until the grantor's death. Upon the death of the grantor the trust becomes irrevocable and not responsible for the payment of the grantor's debts.

Any assets of the estate are not protected from debts, as the now irrevocable trust's are, and must be used to pay debts until the estate, not the trust, becomes insolvent.

Check with your court house. They probably have a complete packet already made up of the required forms. It might be a good idea to consult a probate attorney if the estate has any large assets.

You apply to the probate court. There is normally a package of documents that have to be filled out and submitted to the court. Consult a probate attorney for specifics.

If this person was a spouse, see this article:

http://irsmind.blogspot.com/2008/07/q-filing-return-for-deceased-spouse.html

Hope that helps!

Andrea

http://www.TaxFacts4U.com

For an insurance company to write apolicy, at the time it is sold there has to be an insurable interest between the person taking out the policy and the insured.- there needs to be some legitimate need for it. If you just wanted to cash in on your parents' deaths, sorry, you're out of luck. Perhaps if one of your parents had some type of income that would stop for BOTH of them if one of them died (some sort of annuity that didn't pass to the other) and that income was used to support the adult child on a regular basis, that MIGHT be an insurable interest, probably if the adult child had no other way to earn or get income. That is, there has to be some financial loss the adult would incur if one or both of the parents died. ("They excluded me from their will" is not acceptable). I doubt an insurance company would consider insurable interest exists between any parent and adult child unless the adult child was disabled or mentally ill and dependent on the adults for support, and it would have to be well documented.

The other question, even if there is insurable interest, is would the aging adults even pass the underwriting? Insurance companies don't write policies without medical underwriting (they call it evidence of insurability).They do blood tests, take blood pressure, do AIDS tests, they look at medical records. If they have ANY health problems they will be turned down probably entirely. They do have higher premium categories for people that have some health issues, their age is probably as big an obstacle. The premiums will be SO HIGH that it wouldn't be possible to pay them. The insurance company bases premiums on their statistics on mortality.. and the older a person is, the higher the risk obviously is. Insurance companies aren't in business to lose money. I'm sure there is some maximum age beyond which they just don't insure.

Well, the estate is responsible for paying them back, so the money will come out of the estate, which will mean that you will inherit less money from it. So in a way, you will be paying back the loans. That or the bank will put a lien on the property to secure their debts.

If both names are listed on the account, YES. If only the deceased spouse was listed they will try to collect. They may try to file a claim against the estate. And if they estate is large enough they will succeed. After all, it is a legal debt and should be re-paid.

No, it does not. Life Insurance is a contract between the deceased and the insurance company. Unless the estate has been listed as the beneficiary, the will has no affect on the policy.

It goes into Probate court and the State decides how it is disbursed.

This is an issue that may vary from state to state. Many states passed laws that provide that a person who inherits mortgaged property is not entitled to have that mortgage paid for by other assets in the estate. The mortgaged property itself is primarily liable for payment of the mortgage, unless the will says specifically that the estate is to pay off the mortgage. A simple direction to an executor to pay all debts is not enought to require the estate to pay the mortgage.

If a will gives John a mortgaged house and gives Mary all the cash, and if the estate had to pay the mortgage as if it were an estate debt, then John would receive the house free and clear and Mary would lose a lot of cash. But because of this type of statute, the mortgage technically is not an estate debt. It gets passed on to John and he will pay off the mortgage.

It should be noted that the bank will have to be paid when the decedent dies or it will foreclose and take possession of the property.