GuidingLight 3 Posted May 23, 2006 I will expand and hope for results. 1- If you rack up credit card debt, what happens if you die? Same for past due taxes? Someone here know this stuff? Guessing federal is standard and varies state to state. Interesting question... Share this post Link to post Share on other sites
TAS 2 Posted May 23, 2006 I will expand and hope for results. 1- If you rack up credit card debt, what happens if you die? Same for past due taxes? Someone here know this stuff? Guessing federal is standard and varies state to state. Interesting question... Yup, I do know, and I'm not telling! alsonotreallybutwishidid! 1 Share this post Link to post Share on other sites
GobbleDog 816 Posted May 23, 2006 I assumed the state would claim your assets. If you have no assets, then I assume the debt is wiped off the books. I know there's some rule that says you can't inherit debt. Share this post Link to post Share on other sites
parrot 789 Posted May 23, 2006 Debts are paid from your estate before any willed property can be given. If you have a net debt it is generally just written off I believe. Share this post Link to post Share on other sites
GuidingLight 3 Posted May 23, 2006 Cool. Thanks guys. Share this post Link to post Share on other sites
footballpowers 0 Posted May 23, 2006 Debts are paid from your estate before any willed property can be given. If you have a net debt it is generally just written off I believe. Yes, this is true. Friend of mines father killed himself and left behind HUGE amounts of debt. They could't touch his life insurance but any other asset he had were gone... Share this post Link to post Share on other sites
GobbleDog 816 Posted May 23, 2006 Yes, this is true. Friend of mines father killed himself and left behind HUGE amounts of debt. They could't touch his life insurance but any other asset he had were gone... I thought most life insurance policies had an exemption for suicides. Share this post Link to post Share on other sites
Ravens 03 0 Posted May 23, 2006 Debts are paid from your estate before any willed property can be given. If you have a net debt it is generally just written off I believe. I believe this is correct. I thought most life insurance policies had an exemption for suicides. I believe there is a time limit from policy issuance before suicide is OK. [2-years maybe?] Share this post Link to post Share on other sites
footballpowers 0 Posted May 23, 2006 I thought most life insurance policies had an exemption for suicides. Come to think of it, I did too. I know his ex wife got a chunk of change (even though she was his ex). I guess I assumed it was a life insurance policy.... Share this post Link to post Share on other sites
Mungwater 588 Posted May 24, 2006 Life insurance can't be touched, but for any debts, that is paid by the estate, like many have said. Share this post Link to post Share on other sites
BiPolarBear 476 Posted May 24, 2006 Debts are paid from your estate before any willed property can be given. If you have a net debt it is generally just written off I believe. Might this "written off" part contribute to the high interest responsible people pay on credit cards and other loans? Share this post Link to post Share on other sites
doughboys_2002 11 Posted May 24, 2006 Well I hope you aren't planning on runnin up debt then passing on! Share this post Link to post Share on other sites
BiPolarBear 476 Posted May 24, 2006 Well I hope you aren't planning on runnin up debt then passing on! Dude, look for peenie's post in the 1 Day to Live thread. Share this post Link to post Share on other sites
Ravens 03 0 Posted May 24, 2006 Might this "written off" part contribute to the high interest responsible people pay on credit cards and other loans? I doubt dying people are costing the CC people that much bucks. Share this post Link to post Share on other sites
taco breath 419 Posted February 20, 2021 On 5/24/2006 at 3:43 AM, Ravens 03 said: I doubt dying people are costing the CC people that much bucks. Things change. Share this post Link to post Share on other sites
JustinCharge 2,397 Posted February 21, 2021 The lifetime gift tax exemption is $11 million dollars. The annual exemption is just $15k. That means you can give someone up to $15k per year before you start burning through your lifetime exemption. https://www.fool.com/taxes/2019/12/14/gift-tax-in-2020-how-much-can-i-give-tax-free.aspx So if you are terminally ill, liquidate everything, gift the money to others, then die. The money is tax-free. Share this post Link to post Share on other sites
Cloaca du jour 2,064 Posted February 21, 2021 On 5/23/2006 at 6:17 PM, GuidingLight said: I will expand and hope for results. 1- If you rack up credit card debt, what happens if you die? Same for past due taxes? Someone here know this stuff? Guessing federal is standard and varies state to state. Interesting question... My uncle went into assisted living...they take all of his money for the facility Credit card company just ate it Share this post Link to post Share on other sites
Thornton Melon 544 Posted February 22, 2021 16 hours ago, Cloaca du jour said: My uncle went into assisted living...they take all of his money for the facility Credit card company just ate it Same with my FIL. The nursing home took his monthly pension and SS as payment. He owed about $8K in CC debt when he died. The CC company tried to guilt my wife and her sister into paying it. They said GFY, and that was it. The CC company ate it. Share this post Link to post Share on other sites
Hardcore troubadour 12,648 Posted February 22, 2021 It’s the bank that eats it, not the CC company. And banks don’t eat anything. They pass it along to JQ Public. Share this post Link to post Share on other sites
tubby_mcgee 686 Posted February 22, 2021 5 years before you end up in a nursing home, you need to get assets out of your name. If you don't, the nursing home will go after you or whoever you "gave" the assets to inside that 5 years. So if on Jan 1, 2021 your mom or dad gives you all of their assets, and on July 1, 2022 one or both of them end up in a nursing home, you are on the hook for their nursing home costs (up to the $ amount they "gave" you) if they don't have the money to pay it with the cash/money they currently have. Plan ahead folks. For both your parents if you are still able or for your kids. Share this post Link to post Share on other sites
Big Guy 1,400 Posted February 22, 2021 On 5/23/2006 at 3:23 PM, parrot said: Debts are paid from your estate before any willed property can be given. If you have a net debt it is generally just written off I believe. 1 Share this post Link to post Share on other sites
peenie 1,690 Posted February 22, 2021 42 minutes ago, tubby_mcgee said: 5 years before you end up in a nursing home, you need to get assets out of your name. If you don't, the nursing home will go after you or whoever you "gave" the assets to inside that 5 years. So if on Jan 1, 2021 your mom or dad gives you all of their assets, and on July 1, 2022 one or both of them end up in a nursing home, you are on the hook for their nursing home costs (up to the $ amount they "gave" you) if they don't have the money to pay it with the cash/money they currently have. Plan ahead folks. For both your parents if you are still able or for your kids. Wow, never knew that. Share this post Link to post Share on other sites
tubby_mcgee 686 Posted February 22, 2021 8 minutes ago, peenie said: Wow, never knew that. It's referred to as the "5-year look back" https://www.medicaidplanningassistance.org/medicaid-look-back-period/ Looks like California and DC may be changing it or have changed it to 30 months. Share this post Link to post Share on other sites
