No Will - consequences?

[Dolby]

Hypothetical sitatuation - what would happen in a case where a person dies without a Will - but his Estate doesn't cover what he owes?

 

[MartyMarts]

Good question. I'd also like to know.

 

[rorz0r]

I would suppose people would get paid out in a similar order to a liquidation.

 

[blunomore]

In such a case, the creditors lose the money owing to them.

Of course, in some cases, family or friends would step in and pay just to honour the memory of the deceased. They are however not obliged to do so.

 

[MartyMarts]

Ok... and in the situation where there is something left over from their estate? What happens to that?

 

[wise_guy]

If he married in COP then his wife is liable for all his debts because she owns half his estate.

 

[Polk]

Ok... and in the situation where there is something left over from their estate? What happens to that?

Distributed by the laws of intestate succession

 

[Dolby]

In such a case, the creditors lose the money owing to them

Thanks blunomore.

Obviously (generally) when a person is younger and still accumulating wealth, they owe more than they have. So a young person without dependants, it's better not to have a Will?

 

[blunomore]

Thanks blunomore.

Obviously (generally) when a person is younger and still accumulating wealth, they owe more than they have. So a young person without dependants, it's better not to have a Will?

No .... always better to have a will .... even if it turns out that you have "nothing" to bequeath.

Remember that our financial positions keep on changing ... and people sometimes forget to adapt their wills or their financial planning to their changing circumstances.

Also remember that a lot of people have insurance on their bond or their credit card debt, so you may think you have more debt than assets, but once the insurance pays out, the picture may change.

 

[InSanity]

I got a question what happens if a will is not in place but the person is not owing anything what happens to the house and all the deceased persons assets ?

 

[xrapidx]

Of course, in some cases, family or friends would step in and pay just to honour the memory of the deceased. They are however not obliged to do so.

:wtf: Hope my family never feels obliged to do something like that... I really don't care about my memory once I'm dead/

 

[blunomore]

I got a question what happens if a will is not in place but the person is not owing anything what happens to the house and all the deceased persons assets ?

As mentioned above it gets distributed between his/her heirs in accordance with the laws of intestate succession.

In other words, the law determines what happens to the assets. It all depends if the person was married in community of property, if s/he had kids, if his/her parents are still alive, etc. There is a particular order in which the assets then get distributed.

 

[rorz0r]

Thanks blunomore.

Obviously (generally) when a person is younger and still accumulating wealth, they owe more than they have. So a young person without dependants, it's better not to have a Will?

You can't "leave" someone a whole lot of debt...

 

[Dolby]

Hence my question?

I know you can't leave debt - so I wanted to know where it went

 

[blunomore]

You can't "leave" someone a whole lot of debt...

Hence my question?

I know you can't leave debt - so I wanted to know where it went

It goes nowhere. It must be absorbed by the creditors as a loss.

 

[Billy]

Hence my question?

I know you can't leave debt - so I wanted to know where it went

That's why Credit Providers generally want some sort of life cover.

 

[Avenue]

Ok... and in the situation where there is something left over from their estate? What happens to that?

happened to my dads uncle- left 5 mill behind and no will- so they distributed it first to all his children- he didn't have any so it then went to his brothers and sisters, then to their kids etc.

 

[hyperian]

As far as I understand, your debts die with you.

 

[Bosvark@]

As far as I understand, your debts die with you.

I dont think so - thats why you need life cover when you buy a house, and the banks offer debt cover in case of your death. Life insurance is important as your family can be held accountable as far as I know.

 

[undesign]

Hmmm...I'm not so sure. Even if it is intestate the creditors are paid first, barring certain exclusions like life insurance etc. which is always exempt. Or, technically I suppose, not exempt, but rather not part of the estate in the first place.