Don’t Count on an Inheritance to Get You Out of Debt

Yes, your financial situation is better than some people’s.  You own a house, and you have never missed a mortgage payment.  You have a job, and your employer withholds taxes and pays the after-tax amount into your bank account through direct deposit; you rarely get an unpleasant surprise on payday, and at tax time, you can avoid unpleasant surprises by reading about which tax credits and tax deductions are available to you this tax year.  If you own your own house, chances are that your parents own theirs, too; most people cannot afford to buy a house unless their parents are financially stable enough not to rely on them for support.  Some elderly people have no source of financial support except their own children, but that does not describe your parents.  In fact, you will probably eventually inherit money from your parents.  Even if your parents have shown you their will or told you about the property they plan to leave to you, you should not base your financial plans on promises of inheritance.  Anything can change, so if you are in debt now, contact a Miami debt lawyer.

Why You Probably Aren’t Going to Inherit as Much Money As You Think You Are

Most people who have never acted as the personal representative of a family member’s estate have a poor understanding of how probate works.  Only the wealthiest people, plus a few middle-class folks for whom saving money is a hobby, have made such thorough estate plans that their relatives can receive a sizable inheritance without the deceased person’s estate going through probate.  The rest of us will have to wait until one of our relatives files a tax return for the decedent’s last year of life, settles the decedent’s debts, and fulfills the other formalities of probate.  The whole process takes about a year and a half and costs about five percent of the gross value of the estate.  If only one of your parents is still living, the other parent probably completed probate, and you are only vaguely aware of it.

Address Your Debts as Though Your Parents Are Going to Disinherit You

When your parents talk to you about your estate plan, you should be grateful that they have an estate plan and that they feel comfortable talking about it.  You know what they say about counting your chickens before they hatch, though.  Don’t assume that you are going to inherit 95 percent of your share of your parents’ property.  Even if they have long-term care insurance, your parents, like all Floridians, are just one hurricane away from a major financial setback.  If your debts are stressing you out, you should discharge, settle, or consolidate them so you can enjoy your older family members’ remaining time on Earth.

Work With a Debt Lawyer About Debt Relief for the Considerably Fortunate

A South Florida debt lawyer can help you find ways to discharge or settle eligible debts besides asking your parents for money or inheriting it from them.  Contact Nowack & Olson, PLLC in Miami, Florida to discuss your case.

Source:

usatoday.com/story/money/2024/07/30/inheritance-probate-process-explained/74592143007/