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WHAT HAPPENS TO SMALL DEBS AFTER ONE DIES

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Money Talk > Real Estate

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nemoryer
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Location: wa
WHAT HAPPENS TO SMALL DEBS AFTER ONE DIES  Reply with quote  

I have terminal cancer and my prognosis is maybe 1 month from now. I live in Washington state.

Since June, I have been renting a 1-bedroom apartment for $1015 and around $71 for utilities payable to management.

I have no bills. Just my monthly rent, my Visa card which I am closing this month and the utilities.

I am terribly confused by information I'd been hearing.

Previously I heard that when a tenant dies, the rent dies with the tenant, and so will the other utility bills such as Geico, Comcast, etc. will die too.

Now, an attorney friend from California says they are ALL WRONG. She thinks that all RESIDUAL DEBT are borne by relatives (if nor by spouse), children..

I have no money.

4 months ago when I sold my condo, I gave the proceeds to my son to help them with their debts and pay down their mortgages.

In reading the rental agreement, I came across a part where you can pay $3k for release of your tenancy from this place. But what if you die first?

Thank you please help. Very agonizing o hear so many versions.
Post Wed Sep 23, 2015 10:10 pm
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oldguy
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Location: arizona
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Sorry to hear of your situation.

quote:
I have no money.
4 months ago when I sold my condo, I gave the proceeds to my son


Some of your information is correct. Normally, your estate pays your bills & debts. And then your Will divides the remaining funds to the heirs. If there isn't enough money in your estate to pay your bills & debts, that debt dies with you.

However the government has a "look-back" period of 5 years - that is to keep people from giving away all of their money just before death, thereby cheating your lenders. So you will fall under that Law - your son will be called upon to pay your remaining bills & debts. (Sorry)

But your estate (your son) won't have to pay the $3000 'release of lease' fee, death negates that bill.

For others - In hindsight, you should not have gifted the proceeds to your son, you should have Willed them to him. But the cost is the same - the bills will be paid out of the proceeds in both cases, just a few months later.
Post Wed Sep 23, 2015 11:14 pm
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