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URL:  http://boards.fool.com/the-house-will-be-inherited-subject-to-any-debt-24418255.aspx

Subject:  Re: Don't worry about boomers killing the market Date:  8/2/2006  1:35 PM
Author:  DeltaOne81 Number:  52911 of 75383

The house will be inherited subject to any debt on it. Ditto for any cars.

Yes, assets may have to be sold to pay off the debts, but if you're still short, the debt remaining will be written off, not passed to the kids.


Ditto for any joint credit cards. Ditto for any joint anything, which covers most things in most marriages.

Okay, you said family, which I interpreted to mean kids. If by that you mean spouse, and you're talking about joint accounts, then that's very different.

You said the debt would be 'inherited'. For joint accounts, the debt belongs to both parties from the get go. When one person passes, the other person may be left to pay the debt, but that debt was there's all along. Nothing was inherited.


Inheritance

All or part of a person's estate/assets that is given to an heir once the person is deceased.


Not to be picky, but it just meeans it has to be given upon death. If it was yours all along jointly anyway, it wasn't inherited.


That doesn't mean its not still a bad situation, but it is a key difference. No one needs to worry about inheriting debt, only about inheriting nothing after creditors.
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