Did You Recently Inherited Debts From A Loved One?

1
Settling Inherited Debts

• What happens when a family member passes awayand
  leaves you with unsettled scores.

2
Common Types of Inherited Debt

• Credit card debt
• Mortgage or home loan
• Car loan
• Student loan
• Personal loan

3
What happens if the debt is unsettled?

• Cash from the deceaseds real estate will be used
  to settle all loans.
• If cash is unsufficient, the loans will not be
  legally transferrable to the deceaseds heirs.
• Heir can still take ownership of the loans to
  inherit the deceaseds estate.

4
Common Types of Inherited Debts
5
Mortgage

• A secured loan which uses the first property to
  purchase a second property and the next.
• The lender will seize ownership of the first
  property and sell it off to cover for the
  remaining debt.
• When debt is settled, inheritors will get the
  ownership of the second property.
• Inheritors can continue paying for the mortgage
  if desired.

6
Car Loan

• Inheritors can take over car loan in behalf of
  the deceased.
• With approval from lender, inheritors can
  refinance the car loan.
• Can also use cash from the deceaseds assets to
  pay off the remaining loan.

7
Credit Card Debt

• The remaining debt will be covered from the cash
  of the deceaseds estate or assets.
• If the fund is not enough to cover for the
  overall amount of debt, banks will usually write
  them off.
• Inheritors can also choose to take unsecured
  personal loans such as eon bank personal loan to
  settle the debt.

8
Student Loan

• If the student loan is obtained from the
  government or federal, the remaining debt will be
  written off.
• Remaining amount from private student loans will
  be settled by using cash from deceaseds assets.

9
Can the debt fall on someone else?

• Yes. If the loan is made with a second-party on
  hand, then the debt will fall onto the person who
  signed the agreement of the loan.

10
How do I avoid this?

• If a family member or a close acquaintance is
  having trouble with finance, then it is best to
  discuss and devise a plan to settle the debts.
• Always be wary and alerted with loans you sign as
  the second-party so you know what your financial
  status is.
• If youre an elderly, think twice about taking a
  new debt as you do not want the burden to fall on
  your inheritors.
• Settle unfinished debts with personal loan
  http//www.imoney.my/personal-loan/aeon