Will your spouse be responsible for your debt once you pass? Can your assets be used to settle your debt? Can your debt be passed on to your children? Debt is one of the most common conversations when creating an estate plan and for a good reason.
According to a recent CNBC report, the average American has over $90,000 in debt. That includes debt from:
- Credit cards
- Personal loans
- Student debt
If this sounds familiar, you’ll likely want to know how to protect your loved ones from debt. Our estate planning attorneys in McAllen wish to share a few tips.
You Have Control of Your Debt in Your Will
Did you know once you’re ready to draft your will, you can specifically denote how you want your debt to be paid off? If you have a credit card or loan debt, your assets can be used to settle your accounts after your passing. Keep in mind that if your debts are not cleared:
The responsibility can be inherited by
- your spouse
- or your will’s executor
All involved mustn’t fail to abide by Texas probate laws.
One of the most important things you can do to ensure the best possible outcome for your family is to represent your finances accurately. Hiding or misrepresenting specific numbers can mean your loved ones are held responsible for your debt.
Know Your Rights
At Fryer and Hansen, we understand the topic of debt can be overwhelming and even outright scary. However, know that you have rights. For instance, the Federal Trade Commission’s Fair Debt Collection Practices Act (FDCPA) protects people legally responsible for debt. That means your loved ones have protection from debt collectors and the tactics they may employ.
The act additionally underlines the fact that debt collection conversations:
- Must be polite. Debt collectors cannot verbally harass or threaten you.
- Can only be held between the debt collectors and the widow or legal guardian of the deceased.
- Must not include additional family members or disturb them.
Need to Know More?
Contact our estate planning attorneys in McAllen if you’ve dreaded drafting your last due to debt. Don’t wait any longer. We are here to answer your questions and guide you through the process. Contact us today.