Posted on March 4, 2010.
What happens to your debts, checking, savings, stocks, and IRA when you die? As there are many variables as possible, here is my situation. I'm not decided to die, just trying to understand how life insurance, and I what I can do in advance.
Simple. Living with both parents. No dependents.
10k Student Loans
10k ING Savings
Stocks 10k
2k IRA
2k debt credit card
4k car in my name
So far, I have learned about Sallie Mae.com that student loans are eligible for discharge in case of death. A good reason not to pay when you have an interest rate of 3% Nice.
Now, I want my parents to just take my car, savings / deposit accounts (have the same bank), Roth IRA and stocks in the event of my death. How do I allow them to do that?
Which of my debts become invalid? And what accounts can they claim without effort? What can I do to make things easier for them? Also, how do taxes come into force.
I hope others may find useful answers.
There is misinformation in some of the responses you received.
If you die without a will, the state will determine how to distribute your estate. The state follows the "common sense" guidelines. (The money goes to parents, unless married, then his spouse, unless the spouse passes first or simultaneously, then your children in equal shares)
Usually your creditors attempting to collect what you owe them your estate with a few exceptions that you have found.
As others have said they will and perhaps a trust created, also maintain when you get married or have kids.
For the moment the name of your parents as beneficiaries for all of your investment / savings account (make sure to update when you get married also).
As for your insurance needs at this time is minimal. Life insurance should be used to replace your income and your family is not sent to the poor house in case of early death. Although you can buy early to lock in lower rates and to ensure coverage in case of need. (If it is diagnosed ie, diabetes, before taking a life insurance, it will be much more expensive.
There will always be some effort to hold accountable, but having a current will / trust / beneficiary designated, it will be easier.
Tax is almost too complex a problem. you should seek professional advice.
They go to your family
Do you have a will? Everyone of working age, I think should have its own will.
u either give in your will or the Government need ... and your debt passed on to your family.
The state you live takes half of your property without will.And gives your children to whomever he wants, even if you wanted to go somewhere else.Get a will that says you bequith your assets to your parents.What not your income is multiplied by 15 and that is how much life insurance you need when you have family, but if your only concern is 10 miles funeral expenses should be sufficient.
You need a will, if your estate goes through probate and there is a good possibility that all your hard-earned savings go up to the powers instead of your family. If you die, student loans must be paid. If you declare bankruptcy, you still must pay your student loan. You do not sound like you need life insurance. You do not load, and your savings should cover the cost of burial.
Lets do some simple calculations
Your ING savings do not earn as much as your credit card and payment of costs your car. Take some of your savings and pay both ING. Start repaying your student loan as it is likely that you will die UN before it is retired and if you stall around him he will just be more interest you pay. You can pay interest or interests. You decide.
As for the rest of it, get a will, there is.
