liabilities if I die

worried-me

Hi,

Does anyone know if I die with all my debts (unsercured currently around 49K all on payment plans) will be children be liable for them, either before or after they are 18 ?

Obviously the house would be sold to cover the mortgage but what about the other unsercured liabilities ?

I am trying to find the money to take out life cover so it's all paid but being unemployed any additional money is hard to find!

Could anyone shed any light on this ?

Many thanks

rosyw

No they won't. Your debts become debts of your estate and should be paid from that, so if there's a lot of debt but you own a house, that will probably have to be sold to clear them, if there's not enough left over once the morgage is paid off, then it's best to negotite with creditors, some, in my experience will wrte them off. Some, on the other hand will try to get the money from your family, and be quite ruthless about it, but it must be made clear to them that they can';t have what simply isn't there. If you owen the house as "joint tennants" with your wife/partner, then this passes directly to them and is NOT part of your estate. If you can possibly manage it, get some life insurance cover for the outstanding mortgage, which will cover the lives of ALL owners, I was so grateful for this when my OH died, it was a huge relief to know that my home wouldn't be lost. In the end I CHOSE to sell up, but at least I had the choice.

worried-me

Hi Thanks for the reply. Slightly concerned as you state the kids won't be responsible for my debts but then that some companies chase your family.

If the house if sold when I die it will not be enough to cover the other unsecured debts. I am a single dad so no other person owns the house.

So might the creditotrs go after the kids for money esp. if they are over 18 or other members of my family ?

As said I am trying to get life cover to cover it all.

Alter_ego

Debts are not passed on to your children. They do become debts of your estate.

bargainbetty

Some debt collectors go after family members in the hope that people do not know the law and pay up for debts that are not yours. You have to remember that these people have been known to send out letters to everyone with the same name in a 50 mile radius in the hope they freak someone into paying a debt, regardless of who owns it. They aren't always entirely straightforward in their dealings..... IMO.

As long as your children know that, once your estate is settled, they have no liability to pay any of your creditors, they will be fine. When you die, anything not covered by your estate dies with you.