Death is a difficult time for many people, and it can be even more difficult when debts are left behind. When a person dies, their debts do not automatically disappear. In fact, the debts may become the responsibility of the deceased person’s estate. Knowing what debts are not forgiven at death can help you prepare for the future and make sure your loved ones are not left with a financial burden.
One of the most common debts that are not forgiven at death is medical debt. Medical debt is not discharged after death. It becomes one of the liabilities of the estate. This means that the estate must pay off the debt before any other assets can be distributed to the heirs. It is important to note that medical debt is not limited to hospital bills. It can also include any medical bills, such as those from a doctor’s office, pharmacy, or laboratory.
Another type of debt that is not forgiven at death is credit card debt. Credit card debt is not discharged after death, and it becomes the responsibility of the estate. This means that the estate must pay off the debt before any other assets can be distributed to the heirs. It is important to note that credit card debt is not limited to purchases made on the card. It can also include any interest, fees, or other charges that were accrued on the card.
In addition to medical debt and credit card debt, there are other types of debt that are not forgiven at death. These include student loan debt, car loan debt, and mortgage debt. All of these debts become the responsibility of the estate and must be paid off before any other assets can be distributed to the heirs.
It is important to remember that the debts of the deceased person are not automatically forgiven at death. Knowing what debts are not forgiven at death can help you prepare for the future and make sure your loved ones are not left with a financial burden. It is also important to note that the debts of the deceased person may have an impact on the estate taxes that are due. If you have any questions about what debts are not forgiven at death, it is best to consult with a qualified estate planning attorney.
Death is a difficult time for many people, and it can be even more difficult when debts are left behind. Knowing what debts are not forgiven at death can help you prepare for the future and make sure your loved ones are not left with a financial burden. It is important to remember that medical debt, credit card debt, student loan debt, car loan debt, and mortgage debt are all debts that are not forgiven at death and become the responsibility of the estate. If you have any questions about what debts are not forgiven at death, it is best to consult with a qualified estate planning attorney.
9 Jun 2022.
