Personal loan for assisted living?

[Anonymous]

Have anyone's elder parents taken out a personal loan for assisted living expenses? the debt goes away when the borrower dies. Is this advisable? What's the catch?

[Anonymous]

How does the debt go away when the borrower dies?

[Anonymous]

Who would make such a loan to them? This isn't a thing.

[Anonymous]

I cannot imagine an AL admitting someone with this sort of financial arrangements.

[Anonymous]

No one will give them a loan if they don’t have assets to provide as collateral.

[Anonymous]

Anonymous wrote:How does the debt go away when the borrower dies?

+1000000
This doesn't happen OP.

[Anonymous]

Anonymous wrote:How does the debt go away when the borrower dies?

It won’t - it will be a liability for the estate and probably the heirs even if there isn’t an estate. What OP is describing would amount to free AL, and that doesn’t exist in this way.

[Anonymous]

Anonymous wrote:

Anonymous wrote:How does the debt go away when the borrower dies?

+1000000
This doesn't happen OP.

If there are no assets at the time of death, yes it does. Who would be paying? I do not know who would finance that type of loan but seniors do it with credit card debt so maybe?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How does the debt go away when the borrower dies?

+1000000
This doesn't happen OP.

If there are no assets at the time of death, yes it does. Who would be paying? I do not know who would finance that type of loan but seniors do it with credit card debt so maybe?

Technically you are correct. The debt would be paid from the assets of the estate, and if there are no assets then the debt goes unpaid.

The thing is that there’s no real way for an elderly person with no assets to borrow enough unsecured money to pay for assisted living. That part of the initial premise just wouldn’t happen.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How does the debt go away when the borrower dies?

+1000000
This doesn't happen OP.

If there are no assets at the time of death, yes it does. Who would be paying? I do not know who would finance that type of loan but seniors do it with credit card debt so maybe?

If they're planning to die in a couple of months?

Compare the average credit card limit with the average monthly cost of AL. The math doesn't work.

[Anonymous]

And I cannot imagine AL would accept payment by cc!

[Anonymous]

Anonymous wrote:

Anonymous wrote:How does the debt go away when the borrower dies?

It won’t - it will be a liability for the estate and probably the heirs even if there isn’t an estate. What OP is describing would amount to free AL, and that doesn’t exist in this way.

No. Debt doesn’t “go to the heirs even if there isn’t an estate.”

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How does the debt go away when the borrower dies?

+1000000
This doesn't happen OP.

If there are no assets at the time of death, yes it does. Who would be paying? I do not know who would finance that type of loan but seniors do it with credit card debt so maybe?

No, not maybe.

No lender would do this. Credit cards presumably were taken out long ago when there was income or assets.

[Anonymous]

When you apply to assisted living, they look at your debts as well as your assets, and your financial outflow as well as income each month. If you have a car loan, you have to report the payments. Etc. So if you managed to get a personal loan (which I don't see how you would), you'd have to report the monthly loan payments. And you'd better believe they run credit checks. Why wouldn't they? They need to pay their staff and stay afloat.

[Anonymous]

Are you maybe thinking of a reverse mortar on their house instead of a personal loan? As others have said, I’ve never heard of a forgivable personal loan like what you’re describing.