06-17-2008 08:48 AM
06-17-2008 09:21 AM
With all due respect, PLEASE do not take this personal.
Gettintherequick your post, in my opinion is totally incorrect.
A beneficiary of an Estate can not be held liable by law for any financial obligation of a decedent.
If a named beneficiary of a life insurance policy is found to be deceased the value of the policy becomes the property of the estate of the named beneficiary by law.
If the beneficiary of a life insurance policy is not located, then the value of the policy is placed in an Escheat Account in the State of the last know address of the beneficiary.
In any case, always consult with an attorney who specializes in Estates.
06-17-2008 09:41 AM
That all depends on the State Estate Laws in which your sister and her husband lived at the time of death.
If you sister was a co-owner of the loan and credit cards, she is responsible for the debt.
If she was an authorized user of the account and the creditor can prove that she was the purchaser and benefited from the purchase, she (COULD) be held responsible.
Being the beneficiary of the life insurance policy would have no legal standing as to responsibility.
I suggest you both call it a draw since the statement could go either way.
06-17-2008 03:47 PM
unknown_entity wrote:Bottom Line, You cannot be held responsible for anyone elses debt unless you are a joint account holder or a co-signer.
06-17-2008 04:16 PM
I also live in CA, and AFAIK debts DO generally transer to a surviving spouse, along with the assets. (although IANAL)
Cheezy wrote: What if the State is a "community property" state? I have been trying to find this out, since I brought debt to the marriage, and live in a community property state (Calif). I thought I read that if I were to die my husband would be responsible for all of the debt, not just that which he is a joint acct. holder. because of the community property issue. I would love to know about this because I have been thinking I should get a life insurance policy so that my husband doesn't get stuck with my debts, if god forbid, I kick the bucket.
06-17-2008 04:20 PM
06-17-2008 09:07 PM
06-18-2008 01:02 AM
That's of course IF you get payment protection, which only makes sense if you are certain someone else will be responsible for your debts after your death. I don't bother.
WiseYoungMan21 wrote: As far as credit card debt goes, as long a person has payment protection then its supposed to be paid by the payment protection insurer upon the person death.
- last edited on
09-22-2008 01:05 PM - edited 09-22-2008 01:29 PM
What if the State is a "community property" state? I have been trying to find this out, since I brought debt to the marriage, and live in a community property state (Calif). I thought I read that if I were to die my husband would be responsible for all of the debt, not just that which he is a joint acct. holder. because of the community property issue. I would love to know about this because I have been thinking I should get a life insurance policy so that my husband doesn't get stuck with my debts, if god forbid, I kick the bucket.
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