estate/debt/inheritance laws

[ptownTSI]

Anyone know stuff about this?

what happens if your parents die with no money or home equity to pay their debts? do creditors come after the children?

[hugh jass]

are you going to kill your parents?

[whiltebeitel]

As far as I know, yes.

[dinanm3atl]

I don't "think" so. I believe it is kind of like bankruptcy. The creditors are kind of SOL... I think.

Don't hold me to that.

[Vedubin01]

They stand on their own debt. You are not liable unless you sign as a co-signer.

[whakiewes]

State laws differ on this matter as far as creditors go. Anything your parents leave to you that retains a debt, such as the house, cars, or other loans you will be responsible for. In certain states, unsecured credit such as CC's, small/short term loans, and things of the like are passed to the next in line of the deceased.

If you give me your state and specifically what you need help with, I will point you in the right direction of your states laws. In NC we are pretty restrictive about the debt that can be passed, but other states are much more 'giving' to the benefactors.

Also don't for a second think that just because your not liable, the creditors won't come after you. Creditors are ruthless inconsiderate beings. If its a large enough sum, they will push you until a judge decides and in that case you will have thousands, sometimes hundreds of thousands in legal fees. These are things that need to be considered when your parents make wills.

Wes