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Hi,
I saw some past poting here about that you can refuse to inherite the debt of
your deceased family member. This would be true with debt from a deceased
brother or in-law brother/sister. Am I wrong?
Even my brother/in-law brother/sister writes a will to pass everything to me
or my wife while alive, do I/my wife still have a right to refuse it?
If so, what steps to take? Would somebody kindly point me places (web sites,
books) to find the information, before sitting with a lawyer? I would
appreciate it.
Thank you,
IOUERG
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On 16/3/04 12:33, in article 8tsd50habb27oen31r1qlpiiv76bdvnpap@4ax.com,
"IOUERG" <iouerg@yahoo.com> wrote:
I saw some past poting here about that you can refuse to inherite the debt of
your deceased family member. This would be true with debt from a deceased
brother or in-law brother/sister. Am I wrong?
Even my brother/in-law brother/sister writes a will to pass everything to me
or my wife while alive, do I/my wife still have a right to refuse it?
If so, what steps to take? Would somebody kindly point me places (web sites,
books) to find the information, before sitting with a lawyer? I would
appreciate it.
You do not inherit debts in Anglo-American (i.e., common-law) jurisdictions,
only in civil-law ones (where there is no such thing as an "estate" or an
"executor" or "administrator").
In every system I know of, you can disclaim an inheritance. In civil-law
countries it's important to do that if the inheritance is negative (i.e.,
the decedent died in debt). And because of forced heirship, even by will the
decedent couldn't have disposed of his estate freely (spouse gets a certain
amount, offspring get a share, etc.)
In most common-law countries (not the USA) an estate can be made bankrupt if
it is a net debtor. In the USA bankruptcy of estates is handled under state
probate law. Except in a few states like NY, where real estate passes
outside the estate, and with respect to jointly-owned (or entireties or
community property), trust and POD property and life insurance, pensions and
IRAs, 401-Ks and Keoughs, etc., which may pass outside the estate, it is up
to the executor/administrator -- NOT the beneficiaries -- to pay debts.
EXCEPT where debts or taxes are apportioned to such property, a subject too
arcane to explain here.
In the USA you MUST file a QUALIFIED DISCLAIMER within nine (9) months of
the date of death with the probate court. Do it at least 30 days before:
there are lots of things that can go wrong. But the usual reason for
disclaiming is to save on taxes, or to get the money to another family
member without having to accept it and pass it on as a (possibly taxable)
gift, subject to fraudulent conveyance claims or other debts.
Which raises another issue: the possibility that your creditors might claim
it, even if you disclaim. Again an arcane issue varying by state. See Adam
J. Hirsch, "The Problem of the Insolvent Heir", 74 Corn. L.J. 587 (1989).
The IRS is a preferred creditor in all instances. I always warn people with
debts to have get their parents to change their wills to provide for a
discretionary trust that (under present law) no creditor, not even the IRS,
can touch. If the trust is properly drawn.
I don't know what you mean by "to pass everything to me or my wife while
alive". If he gives you something while alive, that's not by will. And if he
has debts, it could be a fraudulent conveyance, for which the statute of
limitations is four (4) years in most states, six (6) in a few (NY for
example), less in a couple of others I am told. And virtually unlimited in
California and New Jersey (although the point is still being argued in
Calif. Whether there is a valid 7-year SOL). ("Unlimited" because it doesn't
start to run until a creditor has sued, and nobody knows when that might be.
So I wonder how title insurance can ever be written there. (And for those
who, a century from now, resuscitate this posting from Google and wonder
what I mean, go to the (London) Times, Sat., Feb. 15, 1992, "Weekend Money"
section, page 25, "House buyers put at risk", by Owen Dyer, mentioning that
under the Insolvency Act 1986 if a seller is made bankrupt within five
years, real property s/he sold could be seized by the bankruptcy receiver.
If that's so, then there's no reason why a fraudulent conveyance action
wouldn't fly in the USA -- at least where no adequate (arm's length)
consideration was paid.
Sorry to complicate the issues. But with debts and fraudulent conveyances
and so on the law is moving fast ... generally to the advantage of
creditors.
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IOUERG wrote:
Hi,
I saw some past poting here about that you can refuse to inherite the debt of
your deceased family member. This would be true with debt from a deceased
brother or in-law brother/sister. Am I wrong?
You do not "inherit" debt in the United States. You can interit
property subject to debt, but the estate is responsible for the
decedent's debts.
If you do not want to interit property specified in a will or from
an estate without a will, you need to inform the executor/administator
and the court within 9 months of the date of death (and not have had
any benefit from that item, and possibly have some other conditions.)
Any such items are disposed of as if you had already been dead at the
time of death.
I am not a lawyer, but my mother died about 17 months ago, and
my father and a "B" trust (which my sister and I administered)
disclaimed various assets of the estate.
--
This account is subject to a persistent MS Blaster and SWEN attack.
I think I've got the problem resolved, but, if you E-mail me
and it bounces, a second try might work.
However, please reply in newsgroup.
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Hi,
I saw some past poting here about that you can refuse to inherite the debt of
your deceased family member. This would be true with debt from a deceased
brother or in-law brother/sister. Am I wrong?
Even my brother/in-law brother/sister writes a will to pass everything to me
or my wife while alive, do I/my wife still have a right to refuse it?
If so, what steps to take? Would somebody kindly point me places (web sites,
books) to find the information, before sitting with a lawyer? I would
appreciate it.
Thank you,
IOUERG
You cannot inherit a debt. The estate is responsible for paying any
debts out of the estate. If there is anything left it is distributed
to the beneficiaries.
You can refuse an inheritance.
lwpat
http://www.solidgoldhomebusiness.com
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On Tue, 16 Mar 2004 07:33:41 -0500,
IOUERG <iouerg@yahoo.com> wrote:
Hi,
I saw some past poting here about that you can refuse to inherite the debt of
your deceased family member. This would be true with debt from a deceased
brother or in-law brother/sister. Am I wrong?
The debt belongs to the estate, it can not be transferred to you. If
the family member leaves you a house and the bank is owed money on it
then they can use the law to collect the money from the estate, but
they can't show up at your door about your brothers debt unless you
signed a agreement saying you are responsible for your brothers debt.
Even my brother/in-law brother/sister writes a will to pass everything to me
or my wife while alive, do I/my wife still have a right to refuse it?
Yes.
If so, what steps to take? Would somebody kindly point me places (web sites,
books) to find the information, before sitting with a lawyer? I would
appreciate it.
If it happens then go to a lawyer to handle the situation. I think
you are worrying about something that is very unlikely to occur.
--
Best Regards, Keith
NW Oregon Radio http://kilowatt-radio.org/
Pax melior est quam iustissimum bellum.
Replace spam.45f33f21 with wvi dot com & del _
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Hi,
I saw some past poting here about that you can refuse to inherite the debt of
your deceased family member. This would be true with debt from a deceased
brother or in-law brother/sister. Am I wrong?
Even my brother/in-law brother/sister writes a will to pass everything to me
or my wife while alive, do I/my wife still have a right to refuse it?
If so, what steps to take? Would somebody kindly point me places (web sites,
books) to find the information, before sitting with a lawyer? I would
appreciate it.
Thank you,
IOUERG
If you're in the US, debts don't pass to the heirs -- it's not that
you need to refuse them, it's that in the course of probating the
estate, they're either paid or cancelled.
You can refuse an inheritance, if it's something that would be a
burden to you. It's called a disclaimer, and details of how to do this
vary from state to state. Disclaimers are often valuable in what would
otherwise be unfavorable tax situations.
If there are assets that pass outside of probate, there's the
possibility of creditors or other heirs having claims on these assets.
Beneficiaries could be required to contribute from these assets to the
estate.
In other countries, particularly civil-law countries, heirs may indeed
be liable for the deceased's debts.
--
Not a lawyer,
Chris Green
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Hi,
I saw some past poting here about that you can refuse to inherite the debt of
your deceased family member. This would be true with debt from a deceased
brother or in-law brother/sister. Am I wrong?
Even my brother/in-law brother/sister writes a will to pass everything to me
or my wife while alive, do I/my wife still have a right to refuse it?
If so, what steps to take? Would somebody kindly point me places (web sites,
books) to find the information, before sitting with a lawyer? I would
appreciate it.
The decedent's debts are payable from his/her estate together with any
costs that are incurred during the administration of said estate. This
amount is subtracted from the gross estate before specific bequests
are satisfied, and then the residue is distributed to the residuary
legatees in accordance with the terms of the decedent's will or trust.
So, while you are not personally liable for the debt, it will decrease
the amount of your distribution if you are a residuary legatee or a
sole beneficiary as in the scenario that you have described.
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