Most civilized countries allow you to refuse your inheritance. They cannot just force debt on you.
If you inherited debt you got scammed
My neighbor inherited the house he grew up in. He passed away and his grandson got the house. Turns out his grandfather took out a loan against the house and blew all of the money at the casino. His grandson is now paying for a house that was paid off fifty years ago
So he didn’t inherit the house, not quite.
In the US you can give it up to not get the debt. Would have just gotten nothing. Probably was still a better deal than going elsewhere. Or the grandson was just too sentimental about keeping the house.
😕✋ family gambling debt
😏👉family gambling addiction
You don’t inherit another person’s debt. Skeezy collectors can call and pester you, but they can’t take action.
Don’t you inherit debt if you also inherit assets in excess of the debt?
Debts are discharged before heirs receive their inheritance.
No shit? I was not aware of that.
That’s right. If the debts take up all the money, then there is nothing left to inherit. And if there isn’t enough money to pay all the debts, then the debtors go away unsatisfied. In no case do the heirs have any responsibility for the debts.
I should emphasize that this is in countries governed by English common law: the UK, Canada, the US, Australia, New Zealand, etc. I have no idea if it is true in countries following the Napoleonic Code, or anywhere else.
Oh, you meant paid. By discharged I thought you meant cancelled. Yeah, that’s how I thought it worked.
You get what’s left over.
If you get left a house that’s 300k, but they had 250k in debt, you end up with 50k.
But if you get left a 300K house, and they had 500k in debt, you don’t owe 200k. You just don’t get the house.
You would have to pay off the 250 k debt though, if you want to keep the house. You can’t give the house away without paying the debt first.
The one inheriting the house may want to take a 250k loan to afford that 300k house.
“Double it and give it to the next of kin”
It’s a family tradition, that makes it okay.
What country are you in that you can inherit debt?
Could be indirectly inheriting the debt. They could’ve taken out a new/second mortgage to cover their gambling debts, for example. Sure, the kid could refuse the inheritance to avoid being stuck with that, but then they’re still out a house they otherwise would’ve had if not for their parents debts.
That is just mis-spending the money you should have left behind with extra steps.
gambling debt … aka as the mismanaged family business
updated