Interesting conversation with a friend of mine .

[doitmyself]

That was the very first thing I told him . He said " I raised my kids . They don't need my money . They're doing fine . " . He was unwavering .

While I work hard to not leave my kids with any of my problems, I don't feel any responsibility to build my wealth or reduce my pleasures in old age in order to leave them anything. We very modestly assist our kids and grandkids now, while we are living. We all make our own way. To each his own.

 

[ammolab]

Heirs could be liable if:
They signed Mon into nursing or medical care and signed a financial liability form.

They received funds etc from the estate BEFORE debts were settled.

 

[Dave Hess]

Here's a quick search result of Indiana, where I'm from;
Disclaimer; I'm not a legal advisor/lawyer/any other law know it all. In regard to this topic, I'm just the husband to my wife, who's had to settle the estate of her parents.

The Indiana Probate Process​

Probate Process in 7 Steps​

Settling an estate in Indiana requires following specific guidelines. It is important to meet the deadlines and complete all the steps in the process.

Step 1​

The Executor of the estate files a petition with the court to open probate.

Step 2​

The court appoints an Executor of Estate or Personal Representative.

Step 3​

The Executor of the Estate notifies the heirs and publishes notice of probate for creditors.

Step 4​

The Executor takes inventory of all assets of the estate and appraises their value.

Step 5​

The Executor pays the debts of the estate, including any money owed to creditors who file a claim against the estate. If assets must be sold to pay the debts, the executor will need to get approval from the court for the sale.

Step 6​

The final tax returns are filed and any taxes are paid from the estate.

Step 7​

The assets of the estate are distributed to the heirs and probate is closed.

ProbateADVANCE​

Learn more at www.probateadvance.com

^^^^ Pretty much identical to Florida.


A ‘Lady Bird Deed’ here in Florida avoids probate if a home / real estate / property was owned by deceased.

Lady Bird Deed Florida

The Florida lady bird deed is one of the best kept secrets by estate planning attorneys. Read more to find out all the benefits of a lady bird deed.

alainromanlaw.com

 

[Oillover]

When my mom passed we got stuck with paying off her debts. The creditors would not stop hounding us.

+1
When my older brother killed himself, my parents (who didn't cosign anything for him) were also hounded by debt collectors for YEARS!
The debt collectors finally gave up, but the stress on my parents who just lost their son was not worth it-clearly my brother thought otherwise.

 

[zrxkawboy]

I guess I can see your friend's point. I personally don't agree with it and wouldn't do that, but I can see why someone might think that way.

 

[nomas]

While I work hard to not leave my kids with any of my problems, I don't feel any responsibility to build my wealth or reduce my pleasures in old age in order to leave them anything. We very modestly assist our kids and grandkids now, while we are living. We all make our own way. To each his own.

I worked with another guy that was just the opposite of the first one . He did without so that he could leave his money to his kids . Different strokes ..

 

[nomas]

So what about the financial part of this ? Is carrying a little debt every month really a bad thing if your credit score is good and your cash flow is positive and the inheritance thing is a non issue ? I really didn't know how to argue with him .

 

[Cruzer4326]

So what about the financial part of this ? Is carrying a little debt every month really a bad thing if your credit score is good and your cash flow is positive and the inheritance thing is a non issue ? I really didn't know how to argue with him .

How well do you like to pay interest?
That seems to be a strong determining factor.
Just my 0.02 .

 

[MParr]

Unsecured loans vs. secured loans. Unsecured is mainly credit cards. There could be cases where liens are placed against any real property.

 

[supton]

Well, I could see the thought of sticking it to the credit card companies: if the estate won’t pay it off, too bad, so sad—you made billions every year off others paying interest, no tears shed.

Not for me though. Just seems dishonest, borrow that which you don’t plan to return. Even if it’s against a nameless/faceless entity. Plus if enough people do that, the house of cards could collapse, with who knows what consequence.

 

[atikovi]

When my mom passed we got stuck with paying off her debts.

You mean from whatever assets she had left? You don't mean you paid anything out of your own pocket? Years ago I remember occasionally reading notices in the newspaper saying, I'm not responsible for debts incurred by anyone other than myself. That would apply to you.

 

[Kira]

I met a nearly ragged guy who made pocket money selling tee shirts before and after rock concerts.
The situation was such that we spoke of many things...in a distracted manner.
He said, "When you die your debts die with you".

I asked him if he knew anything else about estate/probate laws and finance.

 

[Owen Lucas]

The Executor of the Estate notifies the heirs and publishes notice of probate for creditors.

So creditors pay close attention to these when probate notices come out? Maybe there is some type of data solution that alerts banks and credit agencies.

 

[bullwinkle]

Going through this with my Mom’s estate, I’ve gotten everything paid off except for ONE prescription drug provider that can’t decide if they want to send it to collections, or accept a settlement offer (and the idiots, Pharmscript, are STILL getting paid by Medicare & her Part D insurer because of “the disease that must not be named” slowing everything to glacial speeds). Fortunately most of her bigger stuff (house, etc.) was in a trust, distributed upon death; but, I’ll be dealing with taxes for another year at least.

 

[dishdude]

OP's buddy has the right mindset...owe everyone when you check out! Folks save and save for retirement and then are afraid to spend it....enjoy what you worked so many years for, don't leave it to your kids!

 

[nomas]

How well do you like to pay interest?
That seems to be a strong determining factor.
Just my 0.02 .

It's not the determining factor in his case . Pay the minimum amount due every month and let it ride . He has no plan to pay it off anyway .

 

[JHZR2]

The thing that strikes me as odd with this is the person is 65. Who knows how long they’ll live. I can’t imagine banks extend too much credit to retired folks unless they have a defined benefit pension or something tangible.

So this person racks up debts, pays the minimum. Wastes thousands on high CC interest for years. Probably maxes the cards out. Then what? The cards are maxed out. Can’t really use them then paying minimum payments that are primarily interest.

Maybe he scammed the bank out of thousands for a year or three, but he’ll be paying interest possibly for decades.

 

[Cruzer4326]

It's not the determining factor in his case . Pay the minimum amount due every month and let it ride . He has no plan to pay it off anyway .

True... It is indeed an ethical issue.
The responses found here reflect the moral compasses of the responders.

 

[kschachn]

True... It is indeed an ethical issue.
The responses found here reflect the moral compasses of the responders.

At least some of them are correct.

 

[ecotourist]

The plan will work as long as he dies pretty soon. With little time elapsed, the interest/required monthly payments won't be too horrible. The interest rate is eye watering but interest is the product of amount, interest rate and time.

But if he has the bad luck (good luck) to live a long time, he will pay a lot of interest. And if he continues to accumulate debts, he will get to the point where the required payments will really hurt, or become impossible. At that point, what's he to do? Declare bankruptcy and go homeless?

In most jurisdictions children aren't responsible for their deceased parents debts. But any assets in the estate must go to pay income tax and debts before the beneficiaries get anything. And none of that stops the creditors from hounding the children to pay up.

I don't think the credit card companies are hurting. Occasionally they fail to recover the principle, but getting 20% interest out of all the other suckers ... er customers ... makes up for it. I'm glad I'm on the interest earning side of this equation. Keep borrowing folks, I like the income.