A new report prepared by the founder of Money Talks News describes important information about the obligations of family members when a loved one has passed away. Often, when people pass away, they leave behind various debts. Unfortunately, creditors may become ruthless in their attempts to collect these debts from the estate of your loved one or from the potential beneficiaries or heirs. The tips provided by Money Talks News are helpful for those facing debts of an estate in Anaheim. These tips are as follows:
- Family, friends, and heirs of a decedent are not personally liable for the debts of their loved one. One exception to this rule is for spouses. Since California is a community property state, a spouse could potentially be liable for certain debts.
- Beneficiaries should direct all phone calls and communications from creditors to the personal representative for the estate. They should also instruct the creditor not to contact them again.
- Provide notice to creditors and credit bureaus of the death. Personal representatives should also request that the accounts of the decedent be flagged with the statement “Deceased: Do not issue credit.” Identity theft of the dead is a real problem that can be very detrimental to the estate.
- Determine whether there are other parties responsible for the debt, such as joint account holders or co-signers. In these cases, the other party may be on the hook for paying what is owed.
- Do not use any of the credit accounts, even if you are an authorized user. This can be considered fraud if it is used after the main cardholder dies.
- Do not distribute assets of the estate until the debts have been settled. Distributing assets too early could result in heirs or beneficiaries becoming responsible for these debts.
- Consider negotiating some of the debts with the creditors.
- Understand that if there are insufficient assets to pay debts, the lenders ultimately lose.
- Contacting an attorney is vital in order to protect the assets of the estate and prevent any potential liability.
To learn more about dealing with debts of an estate in Anaheim, contact an Anaheim trust administration attorney today at (714) 459-5481.