What Happens to Your Debt After You Die?

PowerON said:
That's what life insurance is for. It cover on funeral cost, cover the debt to whom you shall trust with, mostly to spouse.
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But there are people who can't afford to have life insurance .
 
Yesterday over lunch we were talking about how we definitely need to re-write our will. The one we have now is so old (22 years ago) and says the kids will be raised by my parents. Things have definitely changed around here. I feel not having a will and written medical expectations is being selfish, hubby finds it morbid to think about. I don't like the idea of leaving my children a mess to try to figure out.

Here locally funeral costs, being cremated, having a small plot cost around $10,000. After my dad passed, my mom paid for her funeral costs up front. They will be buried together. I would like to buy a plot next to my parents for my hubby and I.

Articles like this one that RR posted is a terrific reminder to be prepared no matter how old we are. One never knows......
 
When my husband was put into my plot I had to pay upfront to have the plot reopened for my burial. So I think the girls will only need to pay for the casket or cremation and any other expenses they decide on such as church fees (I do want a funeral Mass), viewing, etc. I have a life insurance that will be sufficient to pay for my funeral and still leave them with $$....if I don't have to borrow from it again. Even if I do, I will make sure there's enough for at least the basics. They're both adults now, so I don't feel I NEED to leave them a lot of $$ (they're also the beneficiaries of my 401k, etc).
 
LoveBlue said:
When my husband was put into my plot I had to pay upfront to have the plot reopened for my burial. So I think the girls will only need to pay for the casket or cremation and any other expenses they decide on such as church fees (I do want a funeral Mass), viewing, etc. I have a life insurance that will be sufficient to pay for my funeral and still leave them with $$....if I don't have to borrow from it again. Even if I do, I will make sure there's enough for at least the basics. They're both adults now, so I don't feel I NEED to leave them a lot of $$ (they're also the beneficiaries of my 401k, etc).
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Do you mean that if you die, your adult children will receive retirement benefits?

At USPS where I work, one old man died shortly after he retired (his spouse died a long time ago before he retired). His adult children got nothing from his retirement benefits. So I believe that retirement benefits are for the retiree only, and if the retiree dies, the spouse will receive it but much less. Nothing for anybody else.
 
CrazyPaul said:
Do you mean that if you die, your adult children will receive retirement benefits?
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yes

CrazyPaul said:
At USPS where I work, one old man died shortly after he retired (his spouse died a long time ago before he retired). His adult children got nothing from his retirement benefits. So I believe that retirement benefits are for the retiree only, and if the retiree dies, the spouse will receive it but much less. Nothing for anybody else.
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no. it's because he didn't put in anything for benefactors. you can specify who can receive it and how much.
 
PowerON said:
That's what life insurance is for. It cover on funeral cost, cover the debt to whom you shall trust with, mostly to spouse.
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and plus - you can buy a plot far in advance and it costs very cheap. sometimes a life insurance policy can be tricky and you'll have to carefully review its exclusion policy and see what it does not cover.
 
Jiro said:
no. it's because he didn't put in anything for benefactors. you can specify who can receive it and how much.
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No, USPS offered me voluntary early retirement so I got the package. I read that they offer two choices, retirement benefits with survivor's benefits and without survivor's benefit. Who is the survivor? It mentions a spouse, not children at all. That's USPS pension's policy. USPS allows me to name benefactors in my life insurance only.

I asked one employee what happened to the old man's retirement benefit after he died. She said it's gone so I asked if his adult children should get his retirement benefit. She said no way.
 
CrazyPaul said:
No, USPS offered me voluntary early retirement so I got the package. I read that they offer two choices, retirement benefits with survivor's benefits and without survivor's benefit. Who is the survivor? It mentions a spouse, not children at all. That's USPS pension's policy. USPS allows me to name benefactors in my life insurance only.

I asked one employee what happened to the old man's retirement benefit after he died. She said it's gone so I asked if his adult children should get his retirement benefit. She said no way.
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now that's a different story.

voluntary early retirement package.... or a full retirement package. any early package comes with restriction. it's a cheaper option for employer.
 
Jiro said:
now that's a different story.

voluntary early retirement package.... or a full retirement package. any early package comes with restriction. it's a cheaper option for employer.
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From OPM's website regarding retirement benefits for USPS retirees;

Can my child get a survivor benefit after age 18?
Generally, an unmarried dependent child who is over age 18 can receive a survivor benefit if incapable of self-support due to an injury or medical condition which occurs before turning age 18. After turning age 18, an unmarried dependent child can receive a survivor benefit if enrolled in a recognized school on a full-time basis until age 22.
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So that means my adult children can't get it at all. Now I understand the employee who told me that the adult children of the old man get NOTHING. In other words, we can't name benefactors in our retirement benefits.
 
CrazyPaul said:
From OPM's website regarding retirement benefits for USPS retirees;

So that means my adult children can't get it.
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not surprising. retirement package is typically only for you and your spouse.

life insurance and 401k can be given to benefactor(s) you list on your contract.
 
Jiro said:
not surprising. retirement package is typically only for you and your spouse.

life insurance and 401k can be given to benefactor(s) you list on your contract.
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That's why I asked Loveblue about that (401k).

As for SS retirement benefits for USPS employees who started working in 1984 (including me), from SSA website;

•Certain family members may be eligible to receive monthly benefits, including:
—A widow or widower age 60 or older (age 50 or older if disabled);
—A widow or widower at any age who is caring for the deceased’s child under age 16 or disabled;
—An unmarried child of the deceased who is:
°Younger than age 18 (or up to age 19 if he or she is a full-time student in an elementary or secondary school); or
°Age 18 or older with a disability that began before age 22;
—A stepchild, grandchild, stepgrandchild or adopted child under certain circumstances;
—Parents, age 62 or older, who were dependent on the deceased for at least half of their support; and
—A surviving divorced spouse, under certain circumstances.
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So that also means my adult children get nothing from SSA.
 
CP, a 401k is different than a pension or Social Security, so, yes, my kids can be get mine when I die. Actually, I converted my late husband's 401k and my 401k from a job I was laid off from to IRAs. I will need to roll over my current 401k to either my IRA or to my next employer's 401k.
 
in uk it comes out of your estate e.g your house or what ever you have..if you got nothing I don't know I think it written off....I always wonder what happens if relatives get top end funeral and no money pay for it no dig you up
 
Just FYI:

beneficiaries = the people who receive the insurance money.

benefactor = the person who makes the bequest; that is, the person who names the people that will receive the insurance benefits.

Benefactors give to beneficiaries.
Beneficiaries receive from benefactors.
 
Reba said:
Just FYI:

beneficiaries = the people who receive the insurance money.

benefactor = the person who makes the bequest; that is, the person who names the people that will receive the insurance benefits.

Benefactors give to beneficiaries.
Beneficiaries receive from benefactors.
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woops. you're right.
 
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