Maybe you’ve wondered about your own debt or perhaps your parent’s debt—what happens to that debt when you (or they) die? Well, it depends, and that’s part of the reason you want to ensure your estate plan is well-prepared. How you handle your debt can greatly impact the people you love.

In some cases, you could inadvertently leave a reality in which your surviving heirs—your kids, parents, or others—are responsible for your debt. Alternatively, if you structure your affairs properly, your debt could die right along with you.

According to the Federal Trade Commission, an individual’s debt does not disappear once that person dies. Rather, the debt must either be paid out of the deceased’s estate or by a co-creditor. And that could be bad news for you or the people you love.

Estate PlanningErica EndykeJanuary 9, 2023estate plan, creditors, debt, federal trade commission, probate, estate planning, legacy planning, credit cards, loans, community property, state laws, estate, family wealth planning session

Larry King’s Death Highlights the Importance of Updating Your Estate Plan for Divorce and Death—Part 1

Legendary TV and radio host, Larry King, died at Cedars-Sinai Medical Center in Los Angeles on January 23rd, 2021 at age 87. Larry was hospitalized in December due to COVID-19, but he’d recently been moved from the ICU to a regular hospital room after recovering from the virus. However, the famed broadcaster suffered from a number of other health conditions over the years, including multiple heart attacks, kidney failure, and diabetes, and he passed away from sepsis that was the result of an unrelated infection.

Estate PlanningErica EndykeFebruary 23, 2021estate plan, estate planning, wills, trusts, update, divorce, failed estate plan, importance of updating, larry king, community property, California