Legal Question in Credit and Debt Law in Michigan
debt responsibilty upon death
In a previous answer to a question, you stated that the children of a deceased are not responsible for debt repayment, but it would be paid from the estate. What is considered an ''estate'' for repayment? I have a 401K plan, life insurance, house, vehicles etc.
1 Answer from Attorneys
Re: debt responsibilty upon death
Estate includes any assets that are not otherwise transferred upon death of the testator. For example, life insurance is generally not part of an estate because the beneficiary is named in the policy and therefore, the transfer is made automatically upon your death. If you are the beneficiary it will be a part of your estate. Anything that would go to you upon your death will be part of the estate. You can avoid this by setting up joint assets and by naming beneficiaries as in the example of the life insurance policy.
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