As our parents age, one of the major concerns for an elderly couple is their financial situation. This article highlights the various ways you can help aging parents with their debt.
A couple of the issues highlighted by this article, I think, need some clarification. The first issue is, what happens to my parents’ debt upon their death? Well, it is true that children do not inherit their parents’ debt…but they won’t be inheriting anything else either. To the extent that there are sufficient assets in the estate to pay the debt, then those assets will go to satisfy any outstanding debts. Ask any grandparent, they would want their money to go to their grandchildren through inheritance than paying a bank. The second issue is to get outside help.
So, what can a child do to help their parents? Consult a debt settlement attorney. If your parents are nearing the end of their life, especially those with assets, by negotiating large reductions in their debt, you can help them get on a manageable plan that can get the debt paid off in a couple of years and then preserve the remainder of the estate for loved ones. It’s a tough discussion to have with your parents, but definitely one you want to address as soon as possible.
Kevin Fallon McCarthy
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