Dealing with the loss of a parent can be a stressful process under any circumstance, and the idea of preparing to manage the affairs of the deceased can be intimidating for various reasons. In some cases, beneficiaries may wonder if they might also inherit their parent’s debts in the process. Understanding the role debts play in the estate planning process and the steps to take to protect one’s interests could prove integral to mitigating stress during an already emotional time.
Experts indicate that when a person dies, his or her debts do not simply vanish, but instead continue to exist under ownership of the estate. Experts also assert that liability for debts may only pass on to one’s children under certain circumstances, such as a scenario in which a child cosigned on a loan. There are also certain types of assets that may pass on to beneficiaries without having to be used to pay down debts, such as retirement accounts and life insurance policies.
Those who have questions about the role debt might play in estate planning could benefit from seeking insight on what to expect from the process of probate. As even those who are not responsible for debts may still receive calls or letters from creditors, it may also be integral to gain a better understanding of one’s legal rights and of how best to handle such interactions. Such preparation could not only help limit stress, but it could also help a person avoid feeling pressured into taking unnecessary actions that could prove detrimental to his or her situation.
Individuals who have questions about the role debt will play in the estate planning process and wish to seek advice on all their options could benefit from consulting with an attorney for advice. An attorney can help a client in Louisiana better understand all his or her legal rights and assist in covering every essential topic concerning debts in estate planning. An attorney can also help a client better understand how to respond to interactions with creditors and assist in forming a strategy to protect his or her interests through every step of the subsequent process.