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Step 1: How Much Monthly Income Do I Have? Step 2: How Much Money Do I Need? Step 3: How Can I Find Out What I Have? Step 4: How Much Money Do I Have Overall?
Employment/Business Ownership? Twelve Months of Financial MilestonesWorking with Financial and Legal Advisors |
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taking a financial
inventory
You are not responsible for payment of your loved one’s medical expenses, as long as he or she was an adult. (The definition of adult is generally someone who is age 18 or 21 and depends on the state in which your loved one lived.) You also are not responsible for any loans and debts, such as credit card bills, car payments, and home loans, that your loved one had in his or her name only. These expenses and bills will be paid from your loved one’s estate, if there is one, or will be cancelled by the various lenders. (See the discussion of estates in this Web site.) Some survivors have received disturbing calls from lenders or collection agencies suggesting that their loved ones would want them to pay their bills. You can ignore these calls—or refer them to the executor of your loved one’s estate. If you are a cosigner with your loved one on a loan, such as a mortgage or car loan, however, you are responsible for making payments on that loan. Additionally, parents are responsible for any expenses related to medical care for a dependent child. Where will you get the money to make these payments? Social Security survivor benefits have been a lifesaver for many survivors, particularly those with young children. Life insurance policies can be a source of funds. If you had joint checking or savings accounts with your loved one, you may be able to continue to use them, if the accounts were set up to permit one OR both of you to use them. Talk with someone at the bank or credit union where your account is held. If making payments will create financial hardship,
talk with the service providers and lenders about setting up payments
you can afford. Unpaid bills rack up late fees and other charges
that increase the amount you owe—and they can damage your
personal credit record. Most providers are willing to work with
people who want to pay but need lower payments or longer time frames.
When you are able, you can increase payment amounts or pay off bills
entirely.
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Medical Expenses and Other Bills?
