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
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.
So he didn’t inherit the house, not quite.
updatedYou 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?
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.
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.
Most civilized countries allow you to refuse your inheritance. They cannot just force debt on you.
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.
Even the capitalist dystopia of America doesn’t have inheritance debt.
Only partly true there I’m afraid. Pennsylvania allows for children to be responsible for medical and long term care bills from their parents under a filial support law:
https://www.legis.state.pa.us/cfdocs/legis/LI/consCheck.cfm?txtType=HTM&ttl=23&div=0&chpt=46
PA is only purple on the side that faces the rest of the country.
At state government level, it’s a special breed of the worst aspects of both parties.
That’s not the same.
Maybe I’m misunderstanding, but I read that as if a person in poverty is receiving public assistance, parents or children may be responsible for some of that cost.
Not the same as inheriting debt
That’s still owing money for something I would have never had a say in so call it whatever you want but it meets the definition of debt.
It’s similar to child support. In many states, if a child is in poverty and receiving services, the state claims the right to collect from parents, regardless of circumstances or prior judgements. It doesn’t seem entirely fair but there is a similar connection here, and it is explicitly for care while alive that you owe while they are alive. It does not cover debt incurred nor is it inheriting: you owed it all along
😕✋ family gambling debt
😏👉family gambling addiction
“Double it and give it to the next of kin”
It’s a family tradition, that makes it okay.
gambling debt … aka as the mismanaged family business
