Call Us Today At 608.829.2525

Horn & Johnsen

  • Home
  • Estate Planning
    • Wills
    • Trusts
    • Medicaid
    • LGBTQ
    • Legal Concept Videos
    • Events
  • Practice Areas
    • Probate
    • Guardianship
    • Business Law
    • Real Estate Law
    • Legal Concept Videos
    • Events
  • Attorneys
    • John Horn
    • Dera Johnsen-Tracy
    • Events
  • Videos
  • H&J Blog
  • Testimonials
  • Contact Us
Free Estate Planning Book

Who is Responsible for the Debts of My Parents When They are Gone?

Who is Responsible for the Debts of My Parents When They are Gone?

by HJ / Wednesday, 05 November 2014 / Published in Horn & Johnsen News

Over the years, I have received many questions from clients and others regarding estates. A very common question is, “Who will be responsible for the debts of my parents when they are gone?” This question is most concerning when you become aware that your parent(s) do not have sufficient assets of their own to pay their debts.

Children are not personally responsible for their parents’ debts. Your parent’s estate will be held responsible for his or her debts and, if there are any assets left over after all debts and expenses have been paid, the beneficiaries of his or her estate will receive the remaining amount according to the terms of his or her will, or the heirs according to the laws of intestate distribution of the state in which your parent resided at the time of his or her death. If there are insufficient liquid assets within the estate to pay all debts and expenses, then real estate (along with any other non-liquid assets) will need to be liquidated in order to pay these debts and expenses.

Note that the beneficiary of a life insurance policy is typically not responsible for paying the debts of the decedent or the expenses of his or her estate from the proceeds of the life insurance policy because the proceeds are not part of the probate estate. However, in Wisconsin, even death proceeds from life insurance policies are now often recoverable under the Estate Recovery Program if your parent received Medical Assistance.

Source: New feed

Tagged under: Charging Fees

What you can read next

medicaid-madison-wi
Common Questions About Medicaid and Medicaid Planning
symposium-guest-speaker-madison-wi
Horn & Johnsen SC Invited to Speak at National Symposium in August
Ten Reasons You Should Not Have a Living Trust

Recent Posts

  • dictionary picture of probate meaning

    Help Your Heirs Avoid Probate With a Living Trust

    Probate can be an extremely time consuming and ...
  • I Don’t Have Children – Do I Really Need an Estate Plan

    I Don’t Have Children – Do I Really Need an Estate Plan?

    Many people who have no children wonder whether...
  • person jumping up steps to the end

    Steps to Prepare for End of Life

    Many people neglect to take all of the necessar...
Horn & Johnsen SC - Estate Planning Center of Wisconsin

Estate Planning
Guardianship
Business Law
LGBTQ

Probate
Medicaid
Real Estate
Special Needs

APPOINTMENT LOCATIONS

Madison
Waukesha
Baraboo
Brookfield
Sauk City
Janesville

DOWNLOAD PERSONAL INFORMATION QUESTIONAIRE

SUBSCRIBE TO HORN & JOHNSEN

We respect your privacy and take protecting it seriously.

OFFICE LOCATION

Horn & Johnsen SC
8446 Excelsior Drive, Suite 102
Madison, WI 53717
P. 608.829.2525
E. info2016@hornjohnsen.com
Sitemap

Copyright 2019 Horn & Johnsen. Powered by Digital Fitness.

TOP