Settling Parent's Debts in El Dorado Hills

Estate Planning Attorney Serving Sacramento, El Dorado, & Placer Counties

When faced with debts incurred by your deceased parents, consult with an experienced El Dorado Hills estate planning attorney for guidance. You may be liable for certain debts, while others may be waived or forgiven. At the Law Office of Paul R. Kraft, I pride myself in providing each client with personalized attention. For more than 17 years, I have served clients throughout Sacramento, El Dorado, and Placer Counties.

You May Not Have to Pay Your Parent's Debts

Instead, creditors often pursue settlements through values in the actual estate. Children rarely, if ever, have to pay out of their own pockets to settle their parents' debts. This also usually applies to spousal debt. Certain exceptions apply, especially if you are partly responsible for that debt. Perhaps your name is on a lease, or you and your parent or spouse took out a joint loan. In these cases, you are more likely to be responsible for settling with those creditors.

Will My Children Have to Pay My Debts?

In short, it is unlikely that your children will have to pay for your debt. However, most debts do not just disappear with your passing. Parents can help shield their heirs through thoughtful, protective estate planning. As an experienced estate planning attorney, I often recommend several scenarios through which parents can help prevent their children from facing a financial burden as a result of inherited debt.

These include:

• Alerting your heirs to the potential of you leaving behind debt in the event of your passing
• Life insurance policies that are substantial enough to settle your debts
• Avoiding probate through trusts and named beneficiaries
• Paying down your debt while you still can