If my husband dies before me is it true

[Anonymous]

the house is owned jointly. consideration for the loan was based on two incomes presumably. that no longer exists. i think they check these things but maybe not if the money keeps flowing in.

[Anonymous]

This is pretty easy:

1. Federal loans are forgiven upon death.
2. Private loans are not forgiven. They will go after, first, the co-signer, if any, and then the estate.
3. The estate includes any of his sole assets, and his half of any joint assets. It does NOT include life insurance SO LONG AS the life insurance is NOT made payable to the estate. It also DOES NOT include anything "payable on death" to a beneficiary (some bank accounts for example) or anything owned joint tenants with rights of survivorship or tenants by the entirety (some bank accounts, and usually real estate). However, anything you inherit via JTWROS or Tenants by the Entirety that is encumbered by debt--the debt doesn't go away. You either have to keep paying or refi.
4. If the estate does not have enough assets to pay off all claims/debts/final expenses, there is a priority for payment set by state law. If there's not enough money for all the creditors, then the creditors have to eat the loss.
5. Despite No.4, some creditors will try to bully survivors into paying off the decedant's sole debts with their personal assets (including life insurance benefits) by either misleading about the legal status of those monies and the debt or appealing to the survivor's sense of morality. Don't fall for it.
6. If you are married and live in a state that permits Tenancy By the Entirety, you really should go have your real estate retitled that way if you haven't already. It is very, very beneficial. With Tenants by the Entirety, nothing titled that way can be encumbered for one spouse's debt. With JTWROS and with simple tenants in common, a judgment against one spouse can encumber that spouse's half of the property (and potentially force a sale, depending on the state). With tenants by the entirety, only a judgment against BOTH spouses can encumber property so titled.

[Anonymous]

Thanks so much--very helpful.

[Anonymous]

If you were married at the time he incurred them, you are liable. If you weren't you are not liable.

[Anonymous]

Anonymous wrote:This is pretty easy:

1. Federal loans are forgiven upon death.
2. Private loans are not forgiven. They will go after, first, the co-signer, if any, and then the estate.
3. The estate includes any of his sole assets, and his half of any joint assets. It does NOT include life insurance SO LONG AS the life insurance is NOT made payable to the estate. It also DOES NOT include anything "payable on death" to a beneficiary (some bank accounts for example) or anything owned joint tenants with rights of survivorship or tenants by the entirety (some bank accounts, and usually real estate). However, anything you inherit via JTWROS or Tenants by the Entirety that is encumbered by debt--the debt doesn't go away. You either have to keep paying or refi.
4. If the estate does not have enough assets to pay off all claims/debts/final expenses, there is a priority for payment set by state law. If there's not enough money for all the creditors, then the creditors have to eat the loss.
5. Despite No.4, some creditors will try to bully survivors into paying off the decedant's sole debts with their personal assets (including life insurance benefits) by either misleading about the legal status of those monies and the debt or appealing to the survivor's sense of morality. Don't fall for it.
6. If you are married and live in a state that permits Tenancy By the Entirety, you really should go have your real estate retitled that way if you haven't already. It is very, very beneficial. With Tenants by the Entirety, nothing titled that way can be encumbered for one spouse's debt. With JTWROS and with simple tenants in common, a judgment against one spouse can encumber that spouse's half of the property (and potentially force a sale, depending on the state). With tenants by the entirety, only a judgment against BOTH spouses can encumber property so titled.

Thanks so much for all this info. It sounds like perhaps you are in estate law? This reminds me of the post a while ago who said she would never give any advice on here because she's not paid for it. I would confirm what you've written here of course, but it still is very helpful! It probably took you two seconds to write all this, where it would take me much longer to find out this same info - very helpful, thanks.

[Anonymous]

Anonymous wrote:

Thanks so much for all this info. It sounds like perhaps you are in estate law? This reminds me of the post a while ago who said she would never give any advice on here because she's not paid for it. I would confirm what you've written here of course, but it still is very helpful! It probably took you two seconds to write all this, where it would take me much longer to find out this same info - very helpful, thanks.

PP here - I meant to say: This reminds me of the post from the doctor who said she would never give any advice...

[Anonymous]

DH's student loans were "forgiven" when he died. These federal loans were in HIS NAME ONLY, no co-signers and no consolidation under anyone else's name.

And, yes, check the original loan documents and with the lender.

[Anonymous]

A lot of uninformed opinions here. The "this is pretty easy" poster is correct.

Make sure that you do not consolidate your federal student loans with your spouse. This is permitted but there's no reason to ever do it. If you do, they will not be forgiven upon death.

[Anonymous]

OP, get more life insurance than you think. The difference in the payment is usually not so large. God forbid you should need it.

[Anonymous]

Anonymous wrote:A lot of uninformed opinions here. The "this is pretty easy" poster is correct.

Make sure that you do not consolidate your federal student loans with your spouse. This is permitted but there's no reason to ever do it. If you do, they will not be forgiven upon death.

OP here: THANKS A LOT everyone (well, most of you)

[Anonymous]

You are responsible for his credit card debt. You are responsible for student loans if they are from a private lender. Student loans from a federal lender are forgiven so you will owe nothing. I have federal student loans, so my husband would be in the clear. My husband has private student loans and I am aware that I will have to pay them off.

[Anonymous]

Anonymous wrote:You are responsible for his credit card debt. You are responsible for student loans if they are from a private lender. Student loans from a federal lender are forgiven so you will owe nothing. I have federal student loans, so my husband would be in the clear. My husband has private student loans and I am aware that I will have to pay them off.

With his estate, not with your own money.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You are responsible for his credit card debt. You are responsible for student loans if they are from a private lender. Student loans from a federal lender are forgiven so you will owe nothing. I have federal student loans, so my husband would be in the clear. My husband has private student loans and I am aware that I will have to pay them off.

With his estate, not with your own money.

But isn't her/their money part of his estate so she will in fact be responsible?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You are responsible for his credit card debt. You are responsible for student loans if they are from a private lender. Student loans from a federal lender are forgiven so you will owe nothing. I have federal student loans, so my husband would be in the clear. My husband has private student loans and I am aware that I will have to pay them off.

With his estate, not with your own money.

But isn't her/their money part of his estate so she will in fact be responsible?

Assets that are solely his are his estate.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You are responsible for his credit card debt. You are responsible for student loans if they are from a private lender. Student loans from a federal lender are forgiven so you will owe nothing. I have federal student loans, so my husband would be in the clear. My husband has private student loans and I am aware that I will have to pay them off.

With his estate, not with your own money.

But isn't her/their money part of his estate so she will in fact be responsible?

Assets that are solely his are his estate.

But only that he had before marriage or by gift, bequest or inheritance, right? Assets earned during the marriage are marital property unless there is a prior agreement?