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“Will Your Heirs Get Slammed With Your Debt When You Die?” – Gary Altman Sheds Light on Protected Assets
As it pertains to assets, Gary notes that not all of a person’s assets necessarily are counted as part of an estate for probate purposes. These are known as “protected assets” and include things such as life insurance policies and qualified retirement accounts. The funds from which pass directly to the beneficiary (as long as they are alive) and are not subject to probate.
When asked if a creditor can reach those protected assets, Altman said, “the answer is generally: Not easily, if at all.”
And while there are other assets that are suceptible to creditors, if a person’s liabilities exceed the value of their estate, and the debt was solely in their name (not co-owned), the creditor typically is out of luck.
The full CNBC article can be read here. To learn more about the impact of debt on your estate, download Gary’s article, “Who Will Inherit Your
House, 401K, Debt When You’re Gone?”