What Happens To Your Debt After You Die?
As they approach their fifties and beyond, many people begin thinking about the assets they will be able to leave behind for their children. Less time, however, is spent thinking about the debts they will leave behind and how these debts may impact the estate available to disseminate among the heirs. If you have descendants you hope to leave your estate to, it's time to take a critical look at your outstanding debts and how they may impact the inheritances you will be able to leave behind. Our estate planning attorneys at the Lake of the Ozarks are here to help. Outstanding Debts Must Be Paid Off (If At All Possible) As a general rule of thumb, outstanding debts must be satisfied using the assets within an estate before the estate can be distributed to the heirs. If you have a significant amount of debt, it may eat up the majority of your estate, leaving very little for your heirs. There are a few exceptions, however. Typically, life insurance proceeds and the funds pre...