My parents have 10 rental

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PostPosted: Mon May 26, 2008 8:14 pm   Post subject: My parents have 10 rental  

My parents have 10 rental properties and $50,000 in credit card debt. They lost all renters and quit paying the mortgages. Their debt is rising daily. Am I responsible for any of this debt when they die? Can I do anything now to make things easier once they do pass away?

Aaron
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PostPosted: Mon May 26, 2008 8:28 pm   Post subject:   

Their estate would be responsible. If there is nothing left, no one inherits anything.

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PostPosted: Tue May 27, 2008 6:13 am   Post subject:   

Hi,



If you look up you'd find a couple of forums associated with topics eg debt & mortgage. I think you may choose any one of them as a better place to ask it, since this one is all about insurance.

But do visit us if you have interest in insurance by any chance..

beatrice-oather


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PostPosted: Wed May 28, 2008 11:31 am   Post subject:   

Aaron, I'm so sorry you're having to deal with this...I hate when parents visit burdens even anticipated burdens on their children....as tcope said the debtor will come after the estate, if there is no estate then there is nothing to get....if there are 'some' assets looks like you may lose them...as to anything you can do prior...do mom and dad have life insurance? If not you might want to consider policys that will atleast pay enough to make all the final arrangements...''someone'' is going to have to pay for that...and sounds like might be you... Crying or Very sad



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PostPosted: Wed May 28, 2008 4:49 pm   Post subject:   

Debts accrued by the parents would be the responsibility of the estate upon death of the owner(s). The only way the children would be burdened by the debt would be if the kids were on the title or deed with the parents.



Homes with an outstanding mortgage are considered "secured" debts. The ownership of the rental properties are "secured" to the lender due to the mortgage loans still being in existence. There are a number of additional issues that come to light considering the OPs message.



"Estate taxation" is a separate issue here. Depending on the gross estate value of their estate, there may or may not be federal and/or state estate taxes owed here. Again- a separate issue. Without going into a long, drawn-out discussion of estate tax issues, there is an "order of priority" as to who "gets paid first" regarding taxation and debt that come into play upon the death of a person.



The governments are first in line. If there are taxes owed at the time of the decedent's death (unpaid income, property, estate, business, etc.), the governments will be first in line to get their $$. They will attach and seize all real property, and in certain cases personal property as well, in order to pay off the tax burden.



Next in line are the secured creditors, such as on mortgages, car loans, and anything else in which the loan was secured by property of some sort. Even personal loans that were collateralized with furniture and things of that nature.



Third in line are "unsecured creditors" such as Visa cards and other debt that is not secured by collateraized property.



Lastly are the "legatees," or the heirs of the decedent. If there's anything left after numbers 1-3 above get theirs, it is distributed according to the will, if any. If no will has been made, distribution is according to the decedent's state of residence, called the "laws of intestacy." Dying "intestate" means there is no will, and state law will prevail.



There are numerous methods out there that may be of help to your parents. I would recommend the services of an estate planning attorney- there are still some things that can be done to help out in this situation.



Good luck...this kinds sucks and I wish the best for you!



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PostPosted: Wed May 28, 2008 4:51 pm   Post subject:   

HEY!!!!! Not that I really care- but WHY WASN'T I PAID FOR THE LAST POST!!!??? What's going on here, lakemen? Again, I don't care about the $.34, it's the principle here!



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PostPosted: Wed May 28, 2008 5:51 pm   Post subject:   

If your looking at your total from post from post... every post is updated with your current total, even your 1st or 2nd post now reflects the current total.

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PostPosted: Wed May 28, 2008 6:11 pm   Post subject:   

tcope said:



Quote:
If your looking at your total from post from post... every post is updated with your current total, even your 1st or 2nd post now reflects the current total.




Agreed- but the totals didn't change...weird! The posts obviously appeared with my icon, which means I was signed in...



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PostPosted: Wed May 28, 2008 6:20 pm   Post subject:   

Ok guys,



Let me clear out the confusion. Teach, you are right you would not have gotten any $$ for your last 2-3 posts on this thread. Why? Thats because its the off-topic (non-insurance talk) forum and we do not pay for posts here, if you remember. Smile



From the TOS page,

Quote:
Pub posts wont earn any dollars for the forum members.


Thanks,

Lakemen


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PostPosted: Thu May 29, 2008 10:32 am   Post subject:   

This thread should NOT have been in this category...and should've been moved...correct lakemen?



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PostPosted: Thu May 29, 2008 11:39 am   Post subject: Thanks!  

Hi Lori,



Quote:
This thread should NOT have been in this category...and should've been moved...correct lakemen?


Till now we have tried categorizing threads depending on its point of origination ie. the opening post. Right now, we have to take some time & sort it out following our forum revamp.

Would be eager to know where you would like it to be shifted.



Regards,

Lakemen


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PostPosted: Thu May 29, 2008 12:35 pm   Post subject:   

Quote:
Would be eager to know where you would like it to be shifted.
maybe life ins forum? or general ins questions maybe?


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PostPosted: Thu May 29, 2008 1:07 pm   Post subject: Please help us!  

Dear Lori,



I would love this thread to be shifted accordingly. But I got a little bit confused since I couldn't figure out any form of insurance being mentioned by the opening poster.



Could you help me understand how you have related the rental properties with insurance (I'm being curious to know more, since I don't find him relating his parental debt with insurance). So aren't we proactively trying to show him a way out this through using his parental insurance (when he has not implied it out of his own will) ?



That was the initial reason why I got skeptical about relating it with insurance. Please help us see reason ('cause these are areas wherein we need to place threads correctly)



Regards,

Lakemen



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PostPosted: Fri May 30, 2008 11:40 am   Post subject:   

Quote:
I would love this thread to be shifted accordingly. But I got a little bit confused since I couldn't figure out any form of insurance being mentioned by the opening poster
. I agree it's sticky...
Quote:
So aren't we proactively trying to show him a way out this through using his parental insurance (when he has not implied it out of his own will) ?
Perhaps...that's why I also said
Quote:
or general ins questions maybe?
Because the OP said...

Quote:
Can I do anything now to make things easier once they do pass away?
and since this is an insurance board, the only ''anything'' I could think of would be life insurance...Could be that (as someone mentioned) it shouldn't be on this board at all.? Confused But since 'non-insurance' talk is now lumped into 'pub' talk...thought it would benefit others looking for similar topics were it not in the pub...and after all IMO it's not 'pub' talk...but that's just me and I could be all wet... Wink


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