Leaving Behind a Secured Debt
When a loved one passes away, their estate goes to whoever is specified in their will, or their closest relatives in the absence of a will. Frequently, deceased individuals have not only a significant number of assets to distribute, but also some amount of debt. There are different kinds of debts that a person may leave behind, but in general, heirs are not required to pay these debts. Instead, debts are typically paid through the liquidation of assets before they are distributed, after which the remaining assets are distributed to the heirs. Exceptions to this are items with secured debt attached.
Whether you are the inheritor of an estate with debt attached, or preparing a will with questions about what will happen to your debts, the Houston wills and trust attorneys of Garg & Associates can help you make sense of estate planning laws. Contact us today at 800-242-2151 to speak with a knowledgeable Houston estate planning attorney.
Secured Debts
When someone passes away with a large amount of debt, their estate is generally used to pay for the debt before any assets are distributed to specific heirs. However, if debt is owed on an item that has a secured loan on it, the heir may be able to keep the item, but they will inherit the debt that comes with it. Secured debts are common for different types of property which typically include:
- Cars
- Homes
- Appliances
- Businesses
The list can go on to include any property which was already owned by the person and was used for taking out a loan.
Contact Us
The laws around estate planning and debts can be confusing for anyone. When you are planning your will or inheriting property, it is important to know what your options are. The Houston wills and trust attorneys of Garg & Associates are an experienced and knowledgeable team that can help you understand your legal rights and options. To speak with an experienced legal professional, contact our offices today at 800-242-2151.
