the_trav ([info]the_trav) wrote,
@ 2009-06-25 16:13:00
Previous Entry  Add to memories!  Tell a Friend  Next Entry
Can Australians Inherit Debt?
Qestion: In Australia, is it possible to inherit debt.
E.G. parent maxes out several credit cards, dies, has no insurance, no assets, wills everything to his only son. Is the debt nullified, or does the son have to pay?

CITATION NEEDED!

(9 comments) - (Post a new comment)


[info]titodeathrider
2009-06-25 07:01 am UTC (link)
Here you go:

http://www.austlii.edu.au/au/legis/vic/consol_act/ca198474/s150.html

Have fun, it's good reading :P

(Reply to this) (Thread)

[info]the_trav
2009-06-25 07:20 am UTC (link)
Thanks for the link, really useful, I fecking hate ye olde law speak though >:(

My interpretation of that is that you cannot inherit debt unless:
1 - You agree to it and sign into a contract where you will inherit the debt.
2 - The debt is the mortgage of a property where you are receiving the property and the debt along with it.

You reckon that's right?

(Reply to this) (Parent)(Thread)

[info]titodeathrider
2009-06-25 03:02 pm UTC (link)
Pretty much.

If you wanted an absolute definitive answer I could ring my old boss, but it's how I would interpret it and I think that's what I remember it being.

Trying to make sense out of Law speak is fucking painful and makes me want to bash my head against things... it makes me very happy not to have to deal with this sort of thing anymore :P

(Reply to this) (Parent)

[info]hyperevade
2009-06-25 07:02 am UTC (link)
I don't know.. Been using google-fu to find some info on it, but there appears to be none..

There is something called "Loan Repayment Insurance" that I've seen on websites of lenders, and they mention that it will cover the loan in cases of deaths.. So maybe it does get inherited unless you have this 'insurance'... or maybe they're just using people's ignorance on the matter (belief that debt will be inherited) as a selling point for their loan insurance..

(Reply to this) (Thread)

[info]hyperevade
2009-06-25 07:05 am UTC (link)
I may just suck at googling too.. :p

(Reply to this) (Parent)

[info]the_trav
2009-06-25 07:21 am UTC (link)
Well, I'd expect that depending on the policy covering the debt by insurance means the collectors won't grab your other assets before they're given to your children.

I fully expect an estate needs to clear debts before assets are handed to beneficiaries.

(Reply to this) (Parent)

[info]kupplervati
2009-06-25 07:44 am UTC (link)
Im fairly sure that in most cases unless you sign on as a dependancy to a loan (which if the bank chick i was speaking too is correct) is almost never anymore, they covere the lost money in insurance. Although the bank will first cease the assets, then sell it off at the best possbible auction price, then claim the insurance.

I think you'll find your morgage insurance is part of this, although im fairly sure banks have in build costs added to loans which cover there own ass for insurance aswell... These are lots of things you should probebly speak to a bank or solicitor about... but being as you dont have any kids trav im pretty sure your safe as a pig in shit to your kids inheriting your debt :P

However i think its true, if your children inherit your propity or business, they inherit everything that goes with it, including debt

(Reply to this) (Thread)

[info]the_trav
2009-06-25 07:55 am UTC (link)
I probably should have mentioned, this is an idle curiosity and has no application to my own situation nor that of anyone I know... To the best of my knowledge...

(Reply to this) (Parent)

[info]_gethsemane_
2009-06-25 12:46 pm UTC (link)
When my sister died all her debts were written off. My folks just had to provide evidence of death (her death certificate).

(Reply to this)

(9 comments) - (Post a new comment)

Create an Account
Forgot your login or password?
Login w/ OpenID
English • Español • Deutsch • Русский…