What happens to your credit card debt when you die

[Epic Fail]

So if a terminally ill person is to max out his credit card and give out gifts to family and friends before going out, the credit card campany is going to take a lost?

 

[SilentZero]

It goes with you...unless your married and then your SO has to pay it I believe.

 

[toant103]

i would like to know too

 

[toant103]

Originally posted by: SilentZero
It goes with you...unless your married and then your SO has to pay it I believe.

so divore before you die?

 

[surreal1221]

Originally posted by: toant103
i would like to know too

beautiful rig and setup.

 

[Orsorum]

I believe your estate remains liable for the debt.

 

[Chompman]

They probly can take your house and such and anything else you owned.

 

[JustAnAverageGuy]

Originally posted by: Orsorum
I believe your estate remains liable for the debt.

If you gifted everything you own away during the last 10 years of your life and had absolutely nothing of value when you died?

 

[Epic Fail]

Originally posted by: Orsorum
I believe your estate remains liable for the debt.

of course, but can't you give out your estate first as gifts

 

[Insomniak]

The point here, people, is to figure out just how hard you can f*ck the credit card companies before you die.

I am interested, as I will definitely screw them if I can, just because.

Anyone with any information would be appreciated.

 

[SilentZero]

I spoke to my family about this a few months ago, and I know that my father has a very large life insurance policy so that if he dies his homes/property will be paid off in full and so that my mother won't be left with all his debt. So from this alone is the reason I made the previous comment. I am not sure if debt can be passed from parents to siblings, but I wouldn't doubt it.

 

[Orsorum]

Originally posted by: JustAnAverageGuy

Originally posted by: Orsorum
I believe your estate remains liable for the debt.

If you gifted everything you own away during the last 10 years of your life and had absolutely nothing of value when you died?

I don't know.

 

[Orsorum]

Originally posted by: yamadakun

Originally posted by: Orsorum
I believe your estate remains liable for the debt.

of course, but can't you give out your estate first as gifts

You can, but you're also required to pay taxes on said transfers. The taxes are pretty steep once you go over the threshold.

 

[Deleted member 139972]

.

 

[chrisms]

Originally posted by: Orsorum

Originally posted by: JustAnAverageGuy

Originally posted by: Orsorum
I believe your estate remains liable for the debt.

If you gifted everything you own away during the last 10 years of your life and had absolutely nothing of value when you died?

I don't know.

Liar!

 

[Orsorum]

Link

Take any answers garnered from a web site with a grain of salt.

 

[Epic Fail]

Originally posted by: Orsorum

Originally posted by: yamadakun

Originally posted by: Orsorum
I believe your estate remains liable for the debt.

of course, but can't you give out your estate first as gifts

You can, but you're also required to pay taxes on said transfers. The taxes are pretty steep once you go over the threshold.

if you need to trasnfer real estate, that's tougher to get away with, but if you use your credit card to buy a bunch of 24" LCDs, it'll be hard to track.

 

[Orsorum]

Originally posted by: chrisms

Originally posted by: Orsorum

Originally posted by: JustAnAverageGuy

Originally posted by: Orsorum
I believe your estate remains liable for the debt.

If you gifted everything you own away during the last 10 years of your life and had absolutely nothing of value when you died?

I don't know.

Liar!

I really don't. I'm not that well-versed on estate planning (yet...).

 

[Orsorum]

Originally posted by: yamadakun

Originally posted by: Orsorum

Originally posted by: yamadakun

Originally posted by: Orsorum
I believe your estate remains liable for the debt.

of course, but can't you give out your estate first as gifts

You can, but you're also required to pay taxes on said transfers. The taxes are pretty steep once you go over the threshold.

if you need to trasnfer real estate, that's tougher to get away with, but if you use your credit card to buy a bunch of 24" LCDs, it'll be hard to track.

Well, you are correct. My mind is in two places at once. Transfer tax laws rely upon the gifters' willingness to report the transfer. Assets like land, however, are easier to track than more liquid assets.

 

[jadinolf]

Originally posted by: Orsorum
Link

Take any answers garnered from a web site with a grain of salt.

Looks good to me.

 

[lykaon78]

Originally posted by: SilentZero
I spoke to my family about this a few months ago, and I know that my father has a very large life insurance policy so that if he dies his homes/property will be paid off in full and so that my mother won't be left with all his debt. So from this alone is the reason I made the previous comment. I am not sure if debt can be passed from parents to siblings, but I wouldn't doubt it.

I work in life insurance... unless you name your estate as te beneficiary of your life insurance policy the proceeds of your policy will stay out of the estate. That means the CC companies can't touch any money given to your beneficiaries.

Bottom line is if your estate is worth nothing (ie no real property or any property you want to pass on) and you are not married. ..

Spend away. The rest of us still alive will end up paying for it in the long run (by way of higher rates).

 

[toant103]

Originally posted by: surreal1221

Originally posted by: toant103
i would like to know too

beautiful rig and setup.

thanks

 

[RbSX]

Originally posted by: Orsorum
I believe your estate remains liable for the debt.

Yeah your kids will assume your debt, just like they would for back taxes.

 

[Epic Fail]

Originally posted by: RyanSengara

Originally posted by: Orsorum
I believe your estate remains liable for the debt.

Yeah your kids will assume your debt, just like they would for back taxes.

Hmm, if you really hate your kids....

 

[RbSX]

Originally posted by: yamadakun

Originally posted by: RyanSengara

Originally posted by: Orsorum
I believe your estate remains liable for the debt.

Yeah your kids will assume your debt, just like they would for back taxes.

Hmm, if you really hate your kids....

Yeah, well unfortunately thats what happens