Willing Debt?

[Mlahmarket]

What is the name of your state? New Jersey

I am the eldest of 3 children. My parents undoubtedly have debt and I am fearful that it will fall on me when they pass. I would like to legally write myself out of their will as I feel it is extremely unfair to my husband and children. I came from nothing and worked hard my entire life to build a successful business. Am I able to legally do this and if so what is the process.

 

[Just Blue]

What is the name of your state? New Jersey

I am the eldest of 3 children. My parents undoubtedly have debt and I am fearful that it will fall on me when they pass. I would like to legally write myself out of their will as I feel it is extremely unfair to my husband and children. I came from nothing and worked hard my entire life to build a successful business. Am I able to legally do this and if so what is the process.

Why would you think you, personally, would be responsible for your parents debt? Their estate, if any, pays for their debt (if any).

One can not "write" themselves out of someone's will. You can ask your parents to not mention you in their will, if they have one.

 

[izzie02]

In other words. If your parents owe any money it is taken against any assets or money in bank accounts remaining after their death. If there is not enough to cover debts then they will not be paid. In America debts of our parents do not pass to their children.

 

[LdiJ]

What is the name of your state? New Jersey

I am the eldest of 3 children. My parents undoubtedly have debt and I am fearful that it will fall on me when they pass. I would like to legally write myself out of their will as I feel it is extremely unfair to my husband and children. I came from nothing and worked hard my entire life to build a successful business. Am I able to legally do this and if so what is the process.

Ok, it doesn't really work the way that you think it works. Your parent's estate will be responsible for any debt that your parent's have. If there are not enough assets in your parent's estate to cover their debt, then for the most part, their creditors will be SOL.

You don't need to write yourself out of their will. If you are named as administrator or executor of their will you are not obligated to accept that position. You can choose not to serve. You and your siblings can walk away from the estate if you feel it necessary.

 

[Taxing Matters]

What is the name of your state? New Jersey

I am the eldest of 3 children. My parents undoubtedly have debt and I am fearful that it will fall on me when they pass.

Ok, that's something you need not worry about. You are not liable for your parent's debts when they die just because you are their kid. You'd only be liable for those debts of theirs that you signed an agreement to guarantee. Otherwise, what happens is that the assets they have when they die goes to pay reasonable funeral expenses, estate administration expenses and taxes, and the debts they had. If their assets aren't enough to cover that then some or all of their creditors simply won't get paid in full. If there are any assets left over after all that then those will go to their beneficiaries in their will, or to the persons in line to get them under the state intestate succession law if there is no will.

I would like to legally write myself out of their will as I feel it is extremely unfair to my husband and children.

There is no way for you to do that. Nor would there be any need to do that for the reasons discussed above. You aren't personally liable for their debts due to anything in their will.

If you don't want to inherit any of their estate after they die (assuming anything is leftover after off the estate debts, taxes, and expenses) then you may provide the executor of the estate a disclaimer giving up your inheritance. You'd do that within the first 9 months after the parent dies.

 

[zddoodah]

How is it that you acquired this irrational fear that your parents' debts would "fall on [you] when they [die]"?

When the first of your parents dies, his or her estate will be divided in accordance with the terms of his or her will or, if he/she doesn't have a will, in accordance with the applicable state law. Most folks leave their entire estates to their surviving spouses, so it is likely that nothing affecting you will happen (assuming both your parents have wills). When the second parent dies, someone will likely take charge of identifying and taking control of assets, identifying debts, using liquid assets to pay debts and liquidating other assets if necessary to pay debt, and distributing anything left over to the heirs designated in the will. If the second of your parents to die has debts that exceed the value of his/her assets, the unpaid debt will not pass to anyone. Rather, the creditors will simply write off the unpaid balances.

You are, of course, free to disclaim your inheritances. You're even free to ask your parents to write you out of their wills. However, it would be extremely foolish to make such disclaimers or requests while your parents are alive and you (presumably) don't have the slightest idea what their estates will look like after they die. You wrote that they "undoubtedly have debt," which is probably a reasonable assumption, but don't they also "undoubtedly have" assets? Do you have reason to believe their total debt exceeds the total value of their assets?

 

[Just Blue]

How is it that you acquired this irrational fear that your parents' debts would "fall on [you] when they [die]"?

Watching too many BBC Regency movies?