Husband has debt

[ehb777]

My husband has credit card debt and a fairly large student loan balance. Recently, a close friend's husband died and she has had to settle some of his debt while being saddled with unpaid health insurance claims. This has made me concerned about my situation in the event that something happens to my husband.

We currently keep our finances completely seperate (with the exception of one joint checking account which I never use). Our home is soley in my name. Apart from his computers, of which he has three, there aren't many other tangible assets in his name. His car is about half paid. The debt was obtained in his name only and with his own social securtiy number.

What happens if he dies with outstanding debt? Do I become responsible for it out of my own assets? Does it make sense for my husband to buy insurance on his debt either through the credit card company or an independent agent? Could it be handled best through a life insurance policy? Is there a type of will we could set up that could clear us of any concerns about this? Please help.

ehb777
What is the name of your state?
MarylandWhat is the name of your state?

 

[Betty]

My husband has credit card debt and a fairly large student loan balance. Recently, a close friend's husband died and she has had to settle some of his debt while being saddled with unpaid health insurance claims. This has made me concerned about my situation in the event that something happens to my husband.

We currently keep our finances completely seperate (with the exception of one joint checking account which I never use). Our home is soley in my name. Apart from his computers, of which he has three, there aren't many other tangible assets in his name. His car is about half paid. The debt was obtained in his name only and with his own social securtiy number.

What happens if he dies with outstanding debt? Do I become responsible for it out of my own assets? Does it make sense for my husband to buy insurance on his debt either through the credit card company or an independent agent? Could it be handled best through a life insurance policy? Is there a type of will we could set up that could clear us of any concerns about this? Please help.

ehb777
What is the name of your state?
MarylandWhat is the name of your state?

His debts would be paid out of his estate after probate opened. You would not be responsible for debts under his name only. Everyone's situation is different - it would be best to talk to a life ins. agent re life ins. & a lawyer re a will being prepared. Life ins. would go to the named beneficiary (outside the estate) to do with as they wish. Of course, if the estate was named bene, then the proceeds becomes part of the estate.