Category Archives: Settle an Estate

Paperwork and procedures an executor, trustee or family member must do to manage the financial affairs of someone who died.

Does a loan live on after death?

Although the person is dead, the loan may live on for years…or until it’s paid off. In some instances, death cancels the loan but this is rare. In some states, the next of kin doesn’t just inherit the estate. He inherits the debt as well and is required to pay the debt.

If someone cosigned the loan with the deceased, that person is responsible for the debt. Some loans, such as federal student loans, contain a clause that cancels the loan in the event of the death of the person who signed it.

Private lenders vary on their policies so heirs will have to check the note carefully to find out whether their liable for the debt.

If the loan has been secured with real property, it must always be repaid. Either the bank will repossess the property to cover payment or whoever has inherited that real property will have to pay off the note.

Sometimes banks or other financial institutions will give the cosigner or other family member a few months to decide how to pay off the loan so it’s important to speak with a financial officer quickly so a solution can be discussed.

If the original borrower purchased credit life insurance which pays off the loan in the event of death, there is no problem. The heirs get to keep their inherited property and the loan is paid.

Be sure you know the terms of any loan you take out and what the impact of this loan may be on your heirs if you die before it’s been paid off. Otherwise, you may be leaving your heirs with an unwelcome inheritance – a debt.

Die While You’re a Google Employee

Some companies treat their employees well while they’re alive but provide a few death benefits. However, no other company has a program as rich as Google’s. The benefits for living employees are amazing but those for the deceased’s family are broad and unusual.

  • The deceased’s spouse or domestic partner (can be same sex) receives 50% of their salary for 10 years.
  • All of the dead Google employee’s stock vest immediately.
  • Each child of the employee receives $1,000 per month until age 19…or age 23 for a full time student.
  • And there’s no tenure requirement. All employees qualify.

Why does Google do this?  Obviously, there’s no benefit to the company.  However, according to Google’s Chief People Officer, Laszio Bock, the company feels that it’s important “to help our families through this horrific if inevitable life event.”

So, if you want your loved ones to be well cared for financially after you’re gone and you’re not super rich or you don’t have a ton of life insurance, get a job at Google and continue to work there until you die.

When I Go Away: Getting Your Digital Affairs in Order

I just read an article which talks about the need to leave information about your online accounts so your heirs will know what they have to deal with after you die. It’s well worth reading for the information it provides. What it doesn’t tell you is exactly what you have to do to close out or memorialize those accounts. Grave Robbers, our book about how to prevent identity theft of the deceased, does. In addition, there’s information on our site about how to handle the most popular digital sites.

25 Documents You Need Before You Die

Recently, the Wall Street Journal weekend edition had a very interesting article titled “25 Documents You Need Before You Die.”

Basically, it says that you should make sure that the originals of all of your valuable papers are put somewhere safe and that a loved one knows where that safe place is. Otherwise, when you become incapacitated or after you die there may be a great deal of frustration and unnecessary work as your heir or estate representative tries to figure out what you’ve done and how to prove it.

Check out this article and also check out Die Smart for more information on what to do.