Who Has to Be Paid Before Your Heirs Get Their Inheritance in Austin, Texas?
When you die, the only thing you’ll be worried about is that your family is taken care of. Nobody wants to leave this earth and know that their family will have to tie up a bunch of their loose ends. This is why it’s a good idea to meet with an experienced Austin LGBT probate attorney sooner rather than later. Your probate attorney understands that certain things need to be done when you pass away. Your partner will have to open up an estate in your name. They’ll have to make sure all the creditors are paid so that they can distribute inheritance in Austin to your loved ones.
A lot of people don’t realize that a lot of creditors are out there. By the time you are able to distribute your loved one’s property, there may not be much money left.
Some Assets are Protected from Estate Creditors
The good news is that some assets are protected from creditors. For example, creditors cannot touch your life insurance. The insurance proceeds will go to the person listed as the beneficiary. And, no matter how much the creditors threaten you, these proceeds cannot be attached to pay any of your loved one’s outstanding debts.
The other asset that is immune from creditors would be your retirement savings. If you have an IRA or a 401K, they can’t be touched by creditors. This is why so many people, including LGBT couples, put as much of their money as possible into their retirement accounts. This is a good way to provide resources for your family for when you’re not here to take care of them. The good news is that your LGBT probate attorney in Austin can help you strategize where you keep a majority of your assets.
Creditors Will Crawl Out of the Woodwork When You Die
You’d be surprised how much debt you owe when you die. Bills that you forgot even existed will all of a sudden reappear. Your partner, or whoever handles your estate, will have to deal with these creditors. They’ll have to either pay these creditors or negotiate a settlement of your debts.
Your LGBT probate attorney can help with this. They’ll negotiate with the creditors on your behalf. They know how much the creditors will be willing to accept as a fair settlement. Some of these creditors include the following:
- Mortgage company
- Internal Revenue Service
- Credit Card Companies
- Auto Finance Companies
- Individuals they owed money to
- Judgment Creditors
Most of these are self-explanatory. Some are a bit more confusing. Your LGBT probate lawyer in Austin is familiar with all of these types of creditors.
Do You Really Have to Pay the Creditors of Your Estate?
Most of us would rather our assets go to our loved ones as inheritance in Austin. Unfortunately, nobody gets anything until your creditors are paid. Even minor creditors like the utility companies have to paid when you pass away.
As soon as you pass away, all of your creditors are going to be notified. Either they’ll get a copy of the death certificate from your partner, or they’ll find out some other way. Some creditors actually have a database that notifies them every morning of any accounts where the customer passed away.
There are essentially two (2) kinds of creditors. There are secured creditors and unsecured creditors. The secured creditors basically own loans that are tied to collateral. For example, your mortgage company is a secured creditor.
Unsecured creditors are the ones who have no collateral tied to the debt. Credit card companies and utility companies are unsecured creditors. So are banks who have issued personal loans with no collateral. These companies only get paid once the secured creditors have been paid.
An Experienced LGBT Probate Attorney Can Help Set Up Your Inheritance in Austin
If you and your partner don’t already have a will, you need to call an experienced LGBT probate lawyer and get your inheritance in Austin figured out right away. While nobody wants to think about their own death, you do need to have a will. If you don’t, your family will have to deal with the estate and your creditors all by themselves.
Call our office today and schedule an appointment with a skilled LGBT probate lawyer in Austin. They can sit down and go over what you want to happen when you pass away. They can also answer any questions you may have. Spending a few hours and a few hundred dollars today can save your family a ton of headaches tomorrow.
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