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last will

The main purpose of a will is to direct where your assets will go after you die, but it can also be used to instruct your heirs how to pay your debts. While generally heirs cannot inherit debt, debt can reduce what they receive. Spelling out how debt should be paid can help your heirs.

If someone dies with outstanding debt, the executor is responsible for making sure those debts are paid. This may require selling assets that you would like to leave to specific heirs. There are two types of debts you might leave behind:

  • Secured debt is debt that is attached to a piece of property or an asset, such as a car loan or a mortgage.
  • Unsecured debt is any debt that isn’t backed by an underlying asset, such as credit card debt or medical bills.

When you leave an asset that has debt attached to it to your heirs, the debt stays on the property. Your heirs can either continue to pay on the debt or sell the property to pay off the debt. If you believe this would cause a burden for your heirs, you can leave them assets in your will specifically designated to pay off the debt.

With unsecured debt, although your heirs will not have to pay off the debt personally, the executor will have to pay the debt using estate assets. You can specify in your will which assets to use to pay these debts. For example, suppose you have a valuable collectible that you want one of your heirs to have. You can specify that the executor use assets in your bank account to pay any debts before selling the collectible. And if you want to leave liquid assets, like a bank account, CD, or stocks to an heir, you should designate in your will what you would like your executor to use instead to satisfy debts.

Not everyone needs to spell out how to pay debt in a will. If your debt is negligible or your entire estate is going to just one or two people, it may not be necessary. Contact your attorney to come up with a plan for handling your debts.

Posted on behalf of Susan B. Geffen

2447 Pacific Coast Hwy #234
Hermosa Beach, CA 90254

Phone: (800) 285-2659
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Susan Geffen saved my life! An elderly relative was the victim of lottery fraud and was acting as the neighborhood ATM, in total over $200,000. Her legal expertise, compassion, and expertise in geriatrics guided the family through a successful process of care management and understanding. At all times the victim and the family trusted Susan and received compassionate support. Her referrals to other professionals were stellar and her reputation among her peers is impeccable. I recommend her without qualification.

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Our Clients Reviews

Susan Geffen saved my life! An elderly relative was the victim of lottery fraud and was acting as the neighborhood ATM, in total over $200,000. Her legal expertise, compassion, and expertise in geriatrics guided the family through a successful process of care management and understanding. At all times the victim and the family trusted Susan and received compassionate support. Her referrals to other professionals were stellar and her reputation among her peers is impeccable. I recommend her without qualification.
Irene Z., Newport Beach
After moving my 88 year old mom from Chicago to California, I was looking for a competent attorney to review and make some minor changes to her living trust. Susan B. Geffen has a wonderful “desk side” manner with her elderly clients and even helped my mom recover $3,000 that her prior attorney in Chicago refused to release from escrow of the sale of her home 2 years ago. I would highly recommend Susan B Geffen’s services to anyone dealing with elderly parents.
D’Marie C., Hermosa Beach, CA
My parents and I retained Susan Geffen’s legal services to navigate through the Medi-Cal process and to preserve my parent’s assets. The process was long and hard, but Susan hung in there with us, even when my parents seemed reluctant and indecisive. Susan showed her professionalism and concern for the elderly by continuing to provide legal services and guidance without payment during a period between the two phases of our journey. I would recommend Susan to anyone in need of legal services relating to the elderly and elder care.
Rick Y., Torrance, CA
When my wife of 53 years suddenly became terminally ill, I asked Susan B. Geffen to provide assistance with new wills and trust documents on short notice. She worked diligently and completed the requisite documents in record time. She also provided in-valuable advice concerning bequests and gathering information for estate tax filings.
Steve K., Rancho Palos Verdes
I highly recommend her for estate planning and elder law questions.
Mike A., Rancho Palos Verdes, CA
I could have searched the country and not have found a more capable and qualified person.
Debbie K., Moreno Valley, CA