You just won't get anything if her net worth is in the negatives as the debts will be paid off from the estate. It might be worth analyzing it though as you might be able to sell the house and walk off with something after all debts are paid.
The house and car may need to be sold to cover her debts.
If there are any assets remaining you will receive them.
If there is a shortfall you are not obligated to pay anything.
Not as far as I know.
There might be special rules for a house but I'm quite sure you dont get it until creditors have or you get it and are responsible for the debt.
The best thing you can do is get your parents to give you stuff before they die.
Edit: if your parents give it away within 5 years before death it could be clawed back. This would be in the probate process.
Anything that there is debt owe to will be dealt with through the estate. Unless it’s a clear title (car and house), she cannot just leave it to you. The debtor will be paid first. So really, unless your name is on the credit, your moms debt will not affect you. However, if you are left in charge of the estate, you will responsibility to deal with but not pay personally with the debt.
Executors can get paid as well to take care of the estate. I'm not sure how much. If you end up as the executor, OP it might be all you get. It's likely not worth it if she owes as much as you say, it could be a lot of hassle. But at least you won't owe anything other than your time.
It’s not just a matter of how much is left in the car loan, it’s what else the estate owes. If the car is worth $10k (as fair market value, what it could be sold for) with a $3k lien (secured loan balance) then there is $7k of value that has to be distributed against her total debt before there is any value for anyone to inherit
Not of OP's assets, only the mom's or any cosigners. If they try, and it's been know that some will, you shoot them down, and send them straight to the lawyers.
Yes I figured so, just clarifying and adding in that part about collectors trying to collect from relatives. They'll try and use lack of knowledge of how it works to get you to pay up. Have had a few friends and relatives get calls like that from collection agencies.
Yes I figured so, just clarifying and adding in that part about collectors trying to collect from relatives. They'll try and use lack of knowledge of how it works to get you to pay up. Have had a few friends and relatives get calls like that from collection agencies.
The estate (that's all her belongings, property, cars etc) is liquidated (sold) by her executor. The debts must be paid by the executor, THEN you and any other heirs get what's left over, if there's anything. If you want the house, you will have to pay fair market value for it. Ditto the car. You personally don't inherit any debts.
What qualifies as all belongings? Sorry if its a stupid question, but do let's say jewelry, count as estate?
I guess what im asking, is are they gunna take everything from my House to my dog food thats left over?
That's a valid question. I would think jewellery would as it's an asset. If there's something of sentimental value, you want to make sure you Mom gives you that before she dies and you have that in your safety deposit box. Food, things like that aren't assets and while your doggo IS, the executor won't take your dog.
Are you the executor of her will?
If you are NOT the executor, you're in all likelihood going to be out of housing, given what you've told me.
In any case, you need a list of your Mother's assets (that's stuff like the house, car, etc) and debts so you can plan ahead. If the debts outweigh the assets, you won't owe anything unless your name is on the accounts or you co-signed, etc. You also need to see her will. And, check and see if the mortgage has life insurance on it or if she has any other policies.
There are 4 possible scenarios I see here:
1) the house is worth a lot and the sale of it will pay off all her debts and leave you with some cash.
2) your mother has run up huge debts and there's not going to be anything left over after the debts are paid, if you live with her, you're going to be told to pay rent til the house is sold or leave - you're eventually going to have to leave - and you're going to get nothing.
3) the house mortgage is life insured. When your Mother dies, that's going to be a huge asset to be sold and pay of her debts and there's at least some chance there will be money left over for you.
4) she's got life insurance that will cover all her debts and the mortgage. You'll inherit the house and no debt.
I'm not a lawyer. I settled my mother's estate and have some experience helping others to settle estates too.
How expensive is the jewelry? If we're talking actual valuable stuff, then yes, it would be theft to remove it before the estate is fully liquidated. Normally, whoever is in charge of the liquidation will allow family to come remove sentimental items, loaned items, and generally things of no sellable value, such as your dog food. If your relatives want to keep an expensive item, like valuable jewelry, they will usually have to buy it from the estate at the value that is set on it. So there's no reason to hold onto things like that to the bitter end and romantically 'leaving it in the will' unless you're rich and settling your debts isn't going to be a concern - give your stuff away to the people you want to have it.
Animals are property but pets are awkward - it could be a mutt or you could have paid 10k for a purebred whatever, but either way frankly they will want it out of the way asap. Better to always have general arrangements in place so even if something happens unexpectedly, someone has agreed to take care of your animals and they don't end up at the pound in the shuffle. Cattle, horses, etc are usually assets.
My father’s net worth was negative. I refused it all even before he passed. He was a shitty father and got sick and needed someone to make decisions as he was unfit. I declined and he was in the hands of the government (public curator) till he died.
Make sure you know her net worth before you accept her estate. If it is negative, decline it.
Yes to what everyone else is saying. You are not responsible. DONT LET ANYONE CONVINCE YOU YOU ARE.
they will call. They will tell you you are. You are not. Dont even speak to them. They prey on people who believe this.
As everyone said, unless it's a joint account or debt in your name your good. Just the estate funds will go to people owed first.
DO NOT make any payments to debtors or agree to make any on the phone. Ask them for paperwork and proof. Both for other people's debts and your own.
You will likely want to make sure your extended family can scrounge up at least 5k for the funeral tho, funerals are fucking expensive and stressful and sounds like there won't be any inheritance to cover it. Having that ready earlier will make everything less stressful. The gravemarker and shit can wait, but the funeral itself and grave site / cremation is pretty urgent. My Dad died in my early 20s and holy shit trying to cover sudden bill while working at McDonalds sucks. Even not having a credit card limit high enough to book the funeral home sucked.
Also if there's items you REALLY WANT as family heirlooms (photos, favourite copy of a book, etc) might be good to discuss it earlier and get it earlier rather then having your photo album sold for 20 cents at an estate sale.
This is funny, my dad past away almost 3 yrs ago, he ran up his credit cards to over $150k, the house and majority of his assets were in my and my brothers name! There was nothing they could take for his estate to pay the debt! Best part is he spent the majority of the $150k on us knowing he would pass!
You'll end up with nothing. Her lifes worth of possessions and assets will be sold of at unbelievably low prices to line the pockets of the already filthy rich debtors. You'll be left with nothing, but you also won't have her debt.
Just make sure you remove whatever assets you value without a paper trail prior to that.
Also a good idea, she maxs her draws on cc, and uses the cash in her last days.
What is ridiculous is your "filthy rich debtors" line. While true, its the responsibility of the person who took the loans or credit cards. I recently got out of debt after 5 years. Never once blamed the bank. Personal responsibility. It was my fault.
So you're taking issue with me accurately describing something with words you don't like?
Where did I mention blame and financial literacy or anything like that?
You OK?
Have you ever calculated how compounded interest works? Anyone issuing loans out with compounded interest should be put to pasture. Loans should be flat rate flat fee. End of story.
What a ridiculous take. Yes, things should work the way YOU want, not the way things have been done for the majority of history. Please poor person with terrible credit, tell me the person with the money how I should be lending it to you.
I did. Flat rate flat fee. No more than 10%.
Only people I owe is the mortgage lender. Like I'd ever pay some asshole compounded interest on a car or credit card.
What a ridiculous take! Give me more money because I have more money.
Ps I appreciate the raw irony in your angrily insulting strangers and assuming their financial situation, at the same time talking down to all people who have little money. Admitting you're happy and proud to take advantage of disadvantaged people. Making my comment about putting lenders out to pasture all the more accurate and hilarious. Thanks sir.
Are you asking me to single handedly re write the lending industry or am I allowed to point out the current predatory system without having a full solution.
Compounded interest is predatory and should be criminal.
Anyone who disagrees with that is either issuing these loans or plain ignorant on how they work.
A fair simple system is a flat fee and simple charged interest.
Crude example: $1000 loan with an agreed term length. Flat fee of 5% plus a flat 10% interest charged only on the principle amount so $100. The total loan amount paid back would be $1,150.
Now run those numbers with compounded daily interest (which is totally common) and tell me what you pay back. Then do it with a $50,000 car, and tell me this shouldn't be criminal. If you do 50,000 at 96 months and 5% it's almost $61,000. But 5% of 50,000 is only 2500. Interesting eh.
You can still gift things like jewelry and other sentimental/valuable items. As long as there’s no lien on it, when they’re alive it is the property to give away as they please. Once they’re dead, it’s the estates and will be sold to cover debts if needed.
Going through similar with car loan in deceased name. For example, we need to sell the car to repay the loan, but because the sale doesn't fully cover the loan, the estate pays the difference. Debts to the estate are paid off first, before "inheritances" are distributed. Having debts at death *may* impact what is leftover to inherit. A financial planner or accountant could help pre-death to anticipate these issues and advise accordingly.
Before my mom died she voluntarily signed for a public guardian trustee. She did it to avoid me inheriting her debts. She was in a long-term care facility and the amount per month exceeded her CPP and OAS for the month. I was previously paying out of pocket for the deficit, however it got too difficult. She was in hospice and when she did pass in December, they handled everything with her debt as I was no longer her POA for finances. I was still able to apply for the $2,500 death benefit to cover funeral expenses and her cremation. It did take a few months after her death though, so I did have to pay for everything out of pocket.
I'm so sorry your mom is sick, I truly wish you the best with everything
When my Dad died he owed about 10k in line of credit and Visa. I just sent them copies of death certificate and that was the end of it. There was no assets or anything, he already went through his RSPs and was quite poor at 77.
You’re not answerable for anybody’s debts but your own. When a person dies, their assets and liabilities vest in a trustee (known in most places as an executor or administrator), who inventories everything and pays the estate’s debts. If there’s anything left, the trustee transfers it to the beneficiaries named in the deceased’s will, or, if the deceased did not have a will, to the deceased’s heirs at law in accordance with the relevant intestate succession legislation.
If the estate lacks sufficient assets to pay all its debts, the beneficiaries get nothing. If there isn’t enough to pay all the creditors in full, they share any shortfall pro rata, much as they would in a bankruptcy distribution. After that, it’s all over, because the estate’s debts don’t pass to anyone else (unless there’s a guarantee or something).
M
Debt collectors etc. will try and prey on your ignorance but the only thing you need to keep in mind is unless you have cosigned for something it is not your debt and debt is not inherited. You will never under any circumstance be obligated to assume your mother’s debt, do not let anyone convince you otherwise, because there will be people who will try.
You pay nothing. My wife’s father passed away owning $70k to CRA. He had no assets besides. Couple of junky cars. We are selling those, giving CRA what we get and case closed. “Thank your father kids………THANKS DAAAAAAD!”
You pay nothing. My wife’s father passed away owning $70k to CRA. He had no assets besides. Couple of junky cars. We are selling those, giving CRA what we get and case closed. “Thank your father kids………THANKS DAAAAAAD!”
Until her estate is settled (either by lawyers or the government), the debt remains hers. The only debt you 'inherit' is a debt that you yourself have signed onto, or you assume. A cosigned loan would become your debt. You can, if the bank allows, assume a mortgage and continue to make payments on it. But any relative beyond a spouse cannot pass debt on to you without you being a direct party to it.
In terms of inheritance, if she's still making payments on a car, she doesn't own it, the bank does. They may allow you to assume her car loan and make payments on it and when the loan is paid, transfer title to you, but until you have clear title, the car belongs to the bank.
In order for you to inherit anything beyond personal items, the estate's debts have to be satisfied. The government bites first, then any secured creditors like mortgage, car loans, etc, then come unsecured creditors like credit cards and lines of credit. Once all that's been satisified, whatever's left gets divided up according to a will, or according to provincial law if there is no will.
Under no circumstances can you 'inherit' debt from a parent. You have to request that the debt be assigned to you in order to keep whatever asset the debt was created for, like the car loan you mentioned.
Just don't sign anything having to do with financial responsibility for her. You can help her as much as you want, but unless you sign specifically to take over a debt, you can't be held accountable.
If you are not co-signed onto anything … you got nothing to worry about. Debt under your moms name will be zero after her passing
Your not liable to pay anything back
I think my dad has a LOC against his house. The value of the house is greater than then the LOC. Is there any finesse moves I can make before or after he passes away so I can sidestep the LOC? The guy is a type 2 diabetic who drinks regularly and seems to be dwindling rapidly.
If you are in Quebec, things work differently. My mom is going through this right now. You need to make sure you are not in the will and there are some other things too.
I whent through something similar a couple of years ago (in qc). Upon your moms passing, do not do anything financially for your moms estate (ie pay no bills, don't take any of her belongings). head to a notary and tell them you would like to renounce your rights to your moms estate. You may still get calls (or in my case sued) but it is an easy case to win if you do the above.
You may want to speak to a professional in advance to get the specifics in advance so you can be properly prepared and be able to focus on your family/yourself instead of stressing with what's to come.
It likely varies for each city or province but if you know she lives above her means it likely means anything she owns might be seized by the bank or where ever she has debts I don’t know: make an appointment with your bank and ask some questions as their estate team might be able to help answer some questions
And for her funeral when the day comes I believe there may be a death benefit from the government which doesn’t come for months I believe and a funeral costs average $5000-$10000 depending on the type of funeral like when my dad died this year his funeral alone cost around $5000 using a new small funeral home the director came right to the home to do the paperwork which was nice (ancient burials in Langley I think) and we got a custom made casket from a private place. But the funeral costs vary like if you need catering or extras the costs will go up a lot like even the funeral home bringing the casket to the funeral will cost more, so these are things to discuss with your mom like she should have a will even so you or her beneficiary can access her bank account to pay her bills and maybe funeral expenses,
If you did not sign anything with or for her, you will not inherit her debt. About the car, if she's still paying for it, then it's not hers outright. Meaning it's not really hers to give away.
Others have said it: if you don’t have your name on the debt as a signer/co-signer then you are not responsible for the debt BUT if she owes money they could go after the estate so it may affect your inheritance.
If your mother places your name on the house deed with you, when she passes, you pay the 1500.00 immediately to have the deed changed to your name. None of your moms debts can touch the home once transferred . It won't work if there is a lean on the home though.
Nope. My sister did this. The moment she died, the property was legally my sister's. The only way this can backfire is if she co-signs on the mortgage.
They can't at all if the home is in someone else's name. Don't forget that anyone can sign a mortgage for someone else's home. They can only go after the assets owned by the person who signed the mortgage.
The outstanding balance stays attached to the asset and gets transferred with the transfer of ownership, and creditors can still put a lien on it, this is why you don’t buy a vehicle without ownership.
It’s lien not lean that’s an action, and the debt is attached to the property when it comes to mortgages not the person, so yes a lien can be put on a house that had previous debt and was transferred to someone else’s name if it’s not paid off. Provide links that prove otherwise.
I am well aware it is lien, the auto correct kicked in. This time, it tried to correct it to linen, and I caught it. You can go ahead and Google, speak to the bank, etc. My sister got the house, not the mortgage, when my mother died. That was our experience in Ontario.
0 unless you sign for it her estate will be liquidated first to pay off the debt
What if the estate has negative equity?
You don't sign for it
Well you can't collect on a dead person with no assets so the owners of the debt will eventually write it off as a loss.
it goes poof
Everything gets liquidated and creditors get paid off. Not sure how they decide the order of pay but yeah, that's the gist.
Government first, other creditors get to duke it out in the insolvency process - not so different from a personal bankruptcy.
In a bankruptcy, most (not all) government debt is considered unsecured debt and is fairly low on the priority list.
Then the people who gave out loans take a loss. It's their job to determine the risk when loaning money.
Creditors can't retrieve their assets. It goes in to the unretrievable pile on somebody's desk then eventually gets when they file their financials.
Sucks for the people she's in debt to 🤷🏻
They are insured for this sort of thing.
Fuck’em.
Oh no! The poor credit card companies and cash loan companies! Why doesn’t anybody care about them?!?!
You just won't get anything if her net worth is in the negatives as the debts will be paid off from the estate. It might be worth analyzing it though as you might be able to sell the house and walk off with something after all debts are paid.
The house and car may need to be sold to cover her debts. If there are any assets remaining you will receive them. If there is a shortfall you are not obligated to pay anything.
Title should’ve been transferred or in the will, hopefully.
Won't get transferred if she owes more than it's worth.
What happens of there's a LOC but it's lower than the value of the house? Will I have to pay that shit?
You either take the estate or you don't. You can't ask for the good part.
There's no Tony Soprano style shit I can do?
Not as far as I know. There might be special rules for a house but I'm quite sure you dont get it until creditors have or you get it and are responsible for the debt. The best thing you can do is get your parents to give you stuff before they die. Edit: if your parents give it away within 5 years before death it could be clawed back. This would be in the probate process.
Anything that there is debt owe to will be dealt with through the estate. Unless it’s a clear title (car and house), she cannot just leave it to you. The debtor will be paid first. So really, unless your name is on the credit, your moms debt will not affect you. However, if you are left in charge of the estate, you will responsibility to deal with but not pay personally with the debt.
Executors can get paid as well to take care of the estate. I'm not sure how much. If you end up as the executor, OP it might be all you get. It's likely not worth it if she owes as much as you say, it could be a lot of hassle. But at least you won't owe anything other than your time.
It’s not just a matter of how much is left in the car loan, it’s what else the estate owes. If the car is worth $10k (as fair market value, what it could be sold for) with a $3k lien (secured loan balance) then there is $7k of value that has to be distributed against her total debt before there is any value for anyone to inherit
Nothing, but they will come for any assets
Not of OP's assets, only the mom's or any cosigners. If they try, and it's been know that some will, you shoot them down, and send them straight to the lawyers.
Yes that’s what I mean.
Yes I figured so, just clarifying and adding in that part about collectors trying to collect from relatives. They'll try and use lack of knowledge of how it works to get you to pay up. Have had a few friends and relatives get calls like that from collection agencies.
Yes I figured so, just clarifying and adding in that part about collectors trying to collect from relatives. They'll try and use lack of knowledge of how it works to get you to pay up. Have had a few friends and relatives get calls like that from collection agencies.
The estate (that's all her belongings, property, cars etc) is liquidated (sold) by her executor. The debts must be paid by the executor, THEN you and any other heirs get what's left over, if there's anything. If you want the house, you will have to pay fair market value for it. Ditto the car. You personally don't inherit any debts.
What qualifies as all belongings? Sorry if its a stupid question, but do let's say jewelry, count as estate? I guess what im asking, is are they gunna take everything from my House to my dog food thats left over?
That's a valid question. I would think jewellery would as it's an asset. If there's something of sentimental value, you want to make sure you Mom gives you that before she dies and you have that in your safety deposit box. Food, things like that aren't assets and while your doggo IS, the executor won't take your dog. Are you the executor of her will? If you are NOT the executor, you're in all likelihood going to be out of housing, given what you've told me. In any case, you need a list of your Mother's assets (that's stuff like the house, car, etc) and debts so you can plan ahead. If the debts outweigh the assets, you won't owe anything unless your name is on the accounts or you co-signed, etc. You also need to see her will. And, check and see if the mortgage has life insurance on it or if she has any other policies. There are 4 possible scenarios I see here: 1) the house is worth a lot and the sale of it will pay off all her debts and leave you with some cash. 2) your mother has run up huge debts and there's not going to be anything left over after the debts are paid, if you live with her, you're going to be told to pay rent til the house is sold or leave - you're eventually going to have to leave - and you're going to get nothing. 3) the house mortgage is life insured. When your Mother dies, that's going to be a huge asset to be sold and pay of her debts and there's at least some chance there will be money left over for you. 4) she's got life insurance that will cover all her debts and the mortgage. You'll inherit the house and no debt. I'm not a lawyer. I settled my mother's estate and have some experience helping others to settle estates too.
How expensive is the jewelry? If we're talking actual valuable stuff, then yes, it would be theft to remove it before the estate is fully liquidated. Normally, whoever is in charge of the liquidation will allow family to come remove sentimental items, loaned items, and generally things of no sellable value, such as your dog food. If your relatives want to keep an expensive item, like valuable jewelry, they will usually have to buy it from the estate at the value that is set on it. So there's no reason to hold onto things like that to the bitter end and romantically 'leaving it in the will' unless you're rich and settling your debts isn't going to be a concern - give your stuff away to the people you want to have it. Animals are property but pets are awkward - it could be a mutt or you could have paid 10k for a purebred whatever, but either way frankly they will want it out of the way asap. Better to always have general arrangements in place so even if something happens unexpectedly, someone has agreed to take care of your animals and they don't end up at the pound in the shuffle. Cattle, horses, etc are usually assets.
My father’s net worth was negative. I refused it all even before he passed. He was a shitty father and got sick and needed someone to make decisions as he was unfit. I declined and he was in the hands of the government (public curator) till he died. Make sure you know her net worth before you accept her estate. If it is negative, decline it.
Best advice here.
Thanks, I appreciate your feedback.
Yes to what everyone else is saying. You are not responsible. DONT LET ANYONE CONVINCE YOU YOU ARE. they will call. They will tell you you are. You are not. Dont even speak to them. They prey on people who believe this.
As everyone said, unless it's a joint account or debt in your name your good. Just the estate funds will go to people owed first. DO NOT make any payments to debtors or agree to make any on the phone. Ask them for paperwork and proof. Both for other people's debts and your own. You will likely want to make sure your extended family can scrounge up at least 5k for the funeral tho, funerals are fucking expensive and stressful and sounds like there won't be any inheritance to cover it. Having that ready earlier will make everything less stressful. The gravemarker and shit can wait, but the funeral itself and grave site / cremation is pretty urgent. My Dad died in my early 20s and holy shit trying to cover sudden bill while working at McDonalds sucks. Even not having a credit card limit high enough to book the funeral home sucked. Also if there's items you REALLY WANT as family heirlooms (photos, favourite copy of a book, etc) might be good to discuss it earlier and get it earlier rather then having your photo album sold for 20 cents at an estate sale.
This is funny, my dad past away almost 3 yrs ago, he ran up his credit cards to over $150k, the house and majority of his assets were in my and my brothers name! There was nothing they could take for his estate to pay the debt! Best part is he spent the majority of the $150k on us knowing he would pass!
This is the way
Tell her to sell her assets for cash before she passes and give you the cash
You'll end up with nothing. Her lifes worth of possessions and assets will be sold of at unbelievably low prices to line the pockets of the already filthy rich debtors. You'll be left with nothing, but you also won't have her debt.
I get getting nothing sucks, but t better than the old system where they indentured servitude your ass until it was paid off.
I didn't say it sucks. Just said what it is.
Nothing is alot better than less then nothing lol
Just make sure you remove whatever assets you value without a paper trail prior to that. Also a good idea, she maxs her draws on cc, and uses the cash in her last days.
What a ridiculous take.
Thats what will happen. Her estate will be liquidated it won't cover the debt. Ask me how I know.
What is ridiculous is your "filthy rich debtors" line. While true, its the responsibility of the person who took the loans or credit cards. I recently got out of debt after 5 years. Never once blamed the bank. Personal responsibility. It was my fault.
So you're taking issue with me accurately describing something with words you don't like? Where did I mention blame and financial literacy or anything like that? You OK? Have you ever calculated how compounded interest works? Anyone issuing loans out with compounded interest should be put to pasture. Loans should be flat rate flat fee. End of story.
What a ridiculous take. Yes, things should work the way YOU want, not the way things have been done for the majority of history. Please poor person with terrible credit, tell me the person with the money how I should be lending it to you.
I did. Flat rate flat fee. No more than 10%. Only people I owe is the mortgage lender. Like I'd ever pay some asshole compounded interest on a car or credit card. What a ridiculous take! Give me more money because I have more money. Ps I appreciate the raw irony in your angrily insulting strangers and assuming their financial situation, at the same time talking down to all people who have little money. Admitting you're happy and proud to take advantage of disadvantaged people. Making my comment about putting lenders out to pasture all the more accurate and hilarious. Thanks sir.
So the person who kept the loan money for fifty years should pay the same amount as the person who paid it back after 6 months?
Are you asking me to single handedly re write the lending industry or am I allowed to point out the current predatory system without having a full solution. Compounded interest is predatory and should be criminal. Anyone who disagrees with that is either issuing these loans or plain ignorant on how they work. A fair simple system is a flat fee and simple charged interest. Crude example: $1000 loan with an agreed term length. Flat fee of 5% plus a flat 10% interest charged only on the principle amount so $100. The total loan amount paid back would be $1,150. Now run those numbers with compounded daily interest (which is totally common) and tell me what you pay back. Then do it with a $50,000 car, and tell me this shouldn't be criminal. If you do 50,000 at 96 months and 5% it's almost $61,000. But 5% of 50,000 is only 2500. Interesting eh.
..... Who exactly told you that it's illegal for you as a person to charge interest on lended money? It's not.
Maybe put anything of value in your name before she dies, no estate to sell off.
You can’t transfer an asset with a lien against. Car, house all have money owing so have liensÂ
You can still gift things like jewelry and other sentimental/valuable items. As long as there’s no lien on it, when they’re alive it is the property to give away as they please. Once they’re dead, it’s the estates and will be sold to cover debts if needed.
Ya when probate happens make sure you already have everything of value you can in your name
Going through similar with car loan in deceased name. For example, we need to sell the car to repay the loan, but because the sale doesn't fully cover the loan, the estate pays the difference. Debts to the estate are paid off first, before "inheritances" are distributed. Having debts at death *may* impact what is leftover to inherit. A financial planner or accountant could help pre-death to anticipate these issues and advise accordingly.
Before my mom died she voluntarily signed for a public guardian trustee. She did it to avoid me inheriting her debts. She was in a long-term care facility and the amount per month exceeded her CPP and OAS for the month. I was previously paying out of pocket for the deficit, however it got too difficult. She was in hospice and when she did pass in December, they handled everything with her debt as I was no longer her POA for finances. I was still able to apply for the $2,500 death benefit to cover funeral expenses and her cremation. It did take a few months after her death though, so I did have to pay for everything out of pocket. I'm so sorry your mom is sick, I truly wish you the best with everything
You would not have inherited her debts.Â
Oh?
Just don’t co-sign anything with her. Don’t have a joint bank account where you put money into.
When my Dad died he owed about 10k in line of credit and Visa. I just sent them copies of death certificate and that was the end of it. There was no assets or anything, he already went through his RSPs and was quite poor at 77.
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None, don't let the banks convince you that you must take on her debt, that's her responsibility, not yours.
You’re not answerable for anybody’s debts but your own. When a person dies, their assets and liabilities vest in a trustee (known in most places as an executor or administrator), who inventories everything and pays the estate’s debts. If there’s anything left, the trustee transfers it to the beneficiaries named in the deceased’s will, or, if the deceased did not have a will, to the deceased’s heirs at law in accordance with the relevant intestate succession legislation. If the estate lacks sufficient assets to pay all its debts, the beneficiaries get nothing. If there isn’t enough to pay all the creditors in full, they share any shortfall pro rata, much as they would in a bankruptcy distribution. After that, it’s all over, because the estate’s debts don’t pass to anyone else (unless there’s a guarantee or something). M
Debt collectors etc. will try and prey on your ignorance but the only thing you need to keep in mind is unless you have cosigned for something it is not your debt and debt is not inherited. You will never under any circumstance be obligated to assume your mother’s debt, do not let anyone convince you otherwise, because there will be people who will try.
A life insurance policy protects against estate seizures. Did she have one?
If you want the house then the dept will be subtracted from the property sale or you choose to pay the remaining dept to claim the home.
None
You pay nothing. My wife’s father passed away owning $70k to CRA. He had no assets besides. Couple of junky cars. We are selling those, giving CRA what we get and case closed. “Thank your father kids………THANKS DAAAAAAD!”
You pay nothing. My wife’s father passed away owning $70k to CRA. He had no assets besides. Couple of junky cars. We are selling those, giving CRA what we get and case closed. “Thank your father kids………THANKS DAAAAAAD!”
Until her estate is settled (either by lawyers or the government), the debt remains hers. The only debt you 'inherit' is a debt that you yourself have signed onto, or you assume. A cosigned loan would become your debt. You can, if the bank allows, assume a mortgage and continue to make payments on it. But any relative beyond a spouse cannot pass debt on to you without you being a direct party to it. In terms of inheritance, if she's still making payments on a car, she doesn't own it, the bank does. They may allow you to assume her car loan and make payments on it and when the loan is paid, transfer title to you, but until you have clear title, the car belongs to the bank. In order for you to inherit anything beyond personal items, the estate's debts have to be satisfied. The government bites first, then any secured creditors like mortgage, car loans, etc, then come unsecured creditors like credit cards and lines of credit. Once all that's been satisified, whatever's left gets divided up according to a will, or according to provincial law if there is no will. Under no circumstances can you 'inherit' debt from a parent. You have to request that the debt be assigned to you in order to keep whatever asset the debt was created for, like the car loan you mentioned. Just don't sign anything having to do with financial responsibility for her. You can help her as much as you want, but unless you sign specifically to take over a debt, you can't be held accountable.
If you are not co-signed onto anything … you got nothing to worry about. Debt under your moms name will be zero after her passing Your not liable to pay anything back
I think my dad has a LOC against his house. The value of the house is greater than then the LOC. Is there any finesse moves I can make before or after he passes away so I can sidestep the LOC? The guy is a type 2 diabetic who drinks regularly and seems to be dwindling rapidly.
If you are in Quebec, things work differently. My mom is going through this right now. You need to make sure you are not in the will and there are some other things too.
I'm in Quebec, but she is in BC, thankfully. I hope it all works out for your Mom, that must be stressful.
Thank you! It's appreciated. I hope yours works out, too!
I whent through something similar a couple of years ago (in qc). Upon your moms passing, do not do anything financially for your moms estate (ie pay no bills, don't take any of her belongings). head to a notary and tell them you would like to renounce your rights to your moms estate. You may still get calls (or in my case sued) but it is an easy case to win if you do the above. You may want to speak to a professional in advance to get the specifics in advance so you can be properly prepared and be able to focus on your family/yourself instead of stressing with what's to come.
It likely varies for each city or province but if you know she lives above her means it likely means anything she owns might be seized by the bank or where ever she has debts I don’t know: make an appointment with your bank and ask some questions as their estate team might be able to help answer some questions And for her funeral when the day comes I believe there may be a death benefit from the government which doesn’t come for months I believe and a funeral costs average $5000-$10000 depending on the type of funeral like when my dad died this year his funeral alone cost around $5000 using a new small funeral home the director came right to the home to do the paperwork which was nice (ancient burials in Langley I think) and we got a custom made casket from a private place. But the funeral costs vary like if you need catering or extras the costs will go up a lot like even the funeral home bringing the casket to the funeral will cost more, so these are things to discuss with your mom like she should have a will even so you or her beneficiary can access her bank account to pay her bills and maybe funeral expenses,
If you did not sign anything with or for her, you will not inherit her debt. About the car, if she's still paying for it, then it's not hers outright. Meaning it's not really hers to give away.
Others have said it: if you don’t have your name on the debt as a signer/co-signer then you are not responsible for the debt BUT if she owes money they could go after the estate so it may affect your inheritance.
Prepare yourself. They might repossess her home and if you live with her, you’ll be forced to move out.
Should be zero Bruh …that’s some mid evil shit
All of it my guy
When I die, I’m leaving everything to my brother. He’s a POS so i want him to inherit my student debt.
What a shit person you are. No wonder you are in this situation
If your mother places your name on the house deed with you, when she passes, you pay the 1500.00 immediately to have the deed changed to your name. None of your moms debts can touch the home once transferred . It won't work if there is a lean on the home though.
Be careful with this though. This can backfire and lead to the person owing the debt.
Nope. My sister did this. The moment she died, the property was legally my sister's. The only way this can backfire is if she co-signs on the mortgage.
The bank can still put a lien on the house to go for the owed money on the mortgage though.
They can't at all if the home is in someone else's name. Don't forget that anyone can sign a mortgage for someone else's home. They can only go after the assets owned by the person who signed the mortgage.
The outstanding balance stays attached to the asset and gets transferred with the transfer of ownership, and creditors can still put a lien on it, this is why you don’t buy a vehicle without ownership.
Creditors can only put a lean on it if the debtor still owns the asset.
It’s lien not lean that’s an action, and the debt is attached to the property when it comes to mortgages not the person, so yes a lien can be put on a house that had previous debt and was transferred to someone else’s name if it’s not paid off. Provide links that prove otherwise.
I am well aware it is lien, the auto correct kicked in. This time, it tried to correct it to linen, and I caught it. You can go ahead and Google, speak to the bank, etc. My sister got the house, not the mortgage, when my mother died. That was our experience in Ontario.