Digital Death - What Happens Online When You Die?

What Happens to Your Debt After You Die?

Do you have any kind of debt? If so, you may want to consider what will happen to that debt if you die before paying it off. Many people avoid this topic, but it’s important to understand just what can happen to those bills when you’re gone.

Who’s Responsible?

When you die, your debts may or may not pass on to other people, depending on the type of debt you held.

• Single Signer
• When you are the only person who took on the debt, no one else will be responsible for it.
• Your assets will be used against the debt. These could include:
• Your share of a house if you co-own.
• Property and vehicles.
• Any bank accounts.
• Co-Signers/ Joint Account Holders
• Anyone who co-signed for a loan or is a joint account owner with you will be responsible for all future payments in the event of your death.
• Commonly co-signed accounts include:
• Student loans
• Student credit cards
• Mortgages
• Authorized User
• An authorized user may use the credit holder’s account, but is not legally obligated to pay the debt.
• In the event of your death, any authorized users must stop using the account.

How Debts Are Paid Post-Mortem

Just because you are gone and no one else is responsible for your debts doesn’t mean the banks and credit card companies will go unpaid. Here’s what happens:

• Your assets are evaluated.
• Debts are prioritized and paid off using the assets from your estate. This will usually be similar to the following, but will vary by state:
• Funeral costs
• Legal fees
• Court fees
• Credit cards

Leaving an Inheritance: Is It Worth It?

What about property and items left to your family and friends? What will happen to these when you die?

• If there is still money owed, the person inheriting the property will usually have a choice:
• Sell the property to pay the debt.
• Pay the debt in order to keep the property.

Community Property

Some states have "community property" laws, which change the game.

• Which States are Community Property States? 

• Alaska.
• Arizona.
• California.
• Idaho.
• Louisiana.
• Nevada.
• New Mexico.
• Texas.
• Washington.
• Wisconsin.

• Community property laws can affect how certain debts are treated and can have differing tax consequences for property upon death of a co-owner. .
• Talk to a lawyer to find out just what happens after death if you live in a community property state.

Preparation can be key to avoiding problems after your death. You can structure and separate accounts to avoid leaving family or friends with your debts and make sure to stay on top of things when possible. Many sources recommend using a lawyer when doing your estate planning to make sure you haven’t left any loose ends.

Rest in Peace, Neil Armstrong

In Loving Memory of Neil Armstrong 

August 5, 1930 - August 25, 2012 

 

Rest in Peace.

Famous Father's Who Chose Cremation

Walt Disney – This loving father and word famous animator died of cancer in 1966. Disney opted for a low cost cremation and his cremated remains were buried in California  

Bud Abbot – Father of two adopted children, Abbot (of Abbot and Costello) was cremated after his passing in 1974, and his cremated remains scattered over the Pacific Ocean.

Albert Einstein – Died April 18, 1955. His name is synonymous with Genius, but he was just Dad to his three children. In his will, Einstein elected to be cremated and his ashes scattered in an unknown location.
Fact: Einstein’s brain was removed and preserved for scientific study.
Fact: In the 1970’s his brain was reportedly still in the hands of the doctor who removed it just hours after his death.  Later gossip spread that it was stolen from a garage sale.

George Harrison – The “quiet” Beetle was also a patient, supportive father. Cremated immediately after his passing in 2001, Harrison’s ashes were scattered over a river in India.
Fact: The Harrison family cremated his remains within hours of death, not notifying the public of his passing until after it was completed.

Sigmund Freud – The father of psychoanalysis was also a father to three boys and three girls. Freud passed in 1939 of cancer and his cremated remains are located in an urn at the Columbarium at Golders Green Crematorium, London.
Fact: Though Freud had six children, he reportedly referred to his youngest daughter as, “my only son, Anna.”

Jim Henson – After his death in 1990 of Pneumonia, the creator of The Muppets was respectfully cremated. Henson’s family, including his five children, scattered his ashes over his ranch outside Santa Fe.

Dezi Arnaz – Latin music sensation and adoring hubby from “I love Lucy,” was cremated after his passing in 1986. His two children, Lucie and Desi Jr., scattered his ashes at sea.

Christopher Reeves – Well known for acting rolls like Superman, Reeves was also a father of three. Cremated after his death in 2004, his ashes were retained by family.

Jerry Garcia – A mostly absent father of four, Grateful Dead lead man, Jerry Garcia was cremated after his passing in 1995.

Planning for a Funeral - 7 Tips of Advice from the FTC

Planning for a Funeral

1. Shop around in advance. Compare prices from at least two funeral homes. Remember that you can supply your own casket or urn.
2. Ask for a price list. The law requires funeral homes to give you written price lists for products and services.
3. Resist pressure to buy goods and services you don't really want or need.
4. Avoid emotional overspending. It's not necessary to have the fanciest casket or the most elaborate funeral to properly honor a loved one.
5. Recognize your rights. Laws regarding funerals and burials vary from state to state. It's a smart move to know which goods or services the law requires you to purchase and which are optional.
6. Apply the same smart shopping techniques you use for other major purchases. You can cut costs by limiting the viewing to one day or one hour before the funeral, and by dressing your loved one in a favorite outfit instead of costly burial clothing.
7. Plan ahead. It allows you to comparison shop without time constraints, creates an opportunity for family discussion, and lifts some of the burden from your family.

Loved to Death