If your parents aren't able to repay what they owe on their own, discuss options for outside help. Family support may be the most affordable option, but it might also cause friction in your family, so be careful. Other options can include debt consolidation and debt settlement companies.
Know your rights. You generally aren't responsible for your deceased parents' consumer debt unless you specifically signed on as a co-signer or co-applicant. Do not allow aggressive debt collectors to trick you into thinking you have to repay the debt.
No, parents are not generally responsible for an adult child's medical debts, said Richard Gundling, senior vice president at the Healthcare Financial Management Association, an organization for finance professionals in health care.
Filial responsibility refers to an adult child's legal duty to support his or her parents. Thirty U.S. states currently have filial responsibility laws that obligate adult children to support parents if they can't do it themselves.
If you're living at home and see your parent or parents behaving recklessly with their money, it may be time to let them grow up. Cut the cord. Or, at least decide how much you can afford to help and contribute only that amount. Helping your parents is a good thing.
Adult children typically don't have to pay their parents' bills, but there are exceptions. And even when a child doesn't have to pay directly, debt could reduce what they inherit.
There are two types of debt you could inherit from your parents: loans you co-signed for them and medical debt (in certain states). Over half of U.S. states have filial responsibility laws, which say adult children may be responsible for their parents' care expenses if they can't support themselves.
Children do not owe their parents for having them. If the child is no longer at home, then no, they have their own bills to pay. If they live in the parents home, they definitely should, food, their share of bills and something to house upkeep.
A lawyer may be able to guide you, given your personal opinions and issues. Pushp Dev Singh Gill, practicing lawyer and authorised notary, says, “You are not liable to pay the debts taken by your father and recovery can be made from his estate which he may leave behind and which you inherit.
Don't be bullied or guilted into giving more than you're able. Prioritize your financial and emotional state then give your money and time accordingly. And don't feel pressured to give money directly to your parents. If they need a bill paid or something then you buy it or pay it.
If there's no money in their estate, the debts will usually go unpaid. For survivors of deceased loved ones, including spouses, you're not responsible for their debts unless you shared legal responsibility for repaying as a co-signer, a joint account holder, or if you fall within another exception.
When a parent dies, their children are not personally liable to creditors for their debt. A creditor cannot go after a child to collect on a parent's debt if there is no contractual agreement between the child and their parents' creditors.
If your spouse dies, you're generally not responsible for their debt, unless it's a shared debt, or you are responsible under state law.
Some states only require you to care for your parents if you are financially able. The law will include the criteria to determine if you are able. Some states' requirements are based on your parent's age, while others only apply if your parent can't pay and will not receive any help from insurance.
“Household formation costs are very expensive, college is very expensive – everything costs more. I have a lot of empathy for people who are just starting out.” That said, the typical age of financial independence should be between 20-23 years old, according to a Bankrate survey.
The time to stop is when the adult kids aren't putting in proper effort to better themselves or their situation. Too many parents start helping and their adult kids continue to make bad decisions which contribute to them needing help.
And finally, a verse that might make you think the only proper response is to lend money to a family member, in particular, is 1 Timothy 5:8, which reads, “But if anyone does not provide for his relatives, and especially for members of his household, he has denied the faith and is worse than an unbeliever.”
The states that have such laws on the books are Alaska, Arkansas, California, Connecticut, Delaware, Georgia, Idaho, Indiana, Iowa, Kentucky, Louisiana, Maryland, Massachusetts, Mississippi, Montana, Nevada, New Hampshire, New Jersey, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Dakota, ...
A debt collector can contact your parents or guardian if you are under 18 years old or live with them. A debt collector can also contact your attorney and, if otherwise allowed by law, credit reporting companies (Equifax, Experian, and TransUnion) about your debt.
Tell them the truth about your financial situation. Credit card debt can sometimes feel shameful. Probably because we see it as "spending money we don't have," and that can feel irresponsible and embarrassing. Still, as I am sure you know, credit card debt is often more complicated than being a shopaholic.