Many heirs are finding after their love one has passed away that he or she has left them not with an inheritance but with unpaid bills.
These may include mortgage and commercial debt, credit card bills and unpaid taxes. Such surprises can eat away at an inheritance quickly.
Sometimes trouble comes not in the form of unpaid bills or debts but guaranteed loans.
Offshore accounts can also lead to trouble, says an article in Forbes. These accounts must be disclosed on what is known as a Foreign Bank Account Report. The requirement applies to inheritors as well or adult children who have power of attorney over elderly parents’ affairs.
In general, if you get no inheritance you cannot be held responsible for such unpaid bills. But there have been court cases where children were held responsible for parents’ unpaid bills even though they had been left with nothing.
The good news is that there are some assets that are protected from creditor claims. These include proceeds of life insurance policies, company retirement plans and, in some states, IRAs.
If you have questions about estate planning, feel free to call us for a consultation at (626) 696-3145.
