by donald

I have a house valued at 220000 i owe 160000 i have boat i owe 95000 worth 50000 , 401k 100000 life insurance 330000 i live in michigan. If i will my house to my son along with life insurance and 401k can i forget about the boat debt?

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Aug 28, 2012
by: Debtcollectionanswers.com

If you do not have a will, you should write one as soon as possible. It will make things much easier for your son. However, writing a will won't get rid of your outstanding debt.

When you die, your estate will go through the probate process in Michigan. All of your assets will be inventoried and valued and your creditors will be notified so that they file claims against your estate to be paid. Not until as many of your debts are paid as possible as well as any taxes and fees your estate may owe can the beneficiaries of your will receive what you have left to them. This means that if there is not enough money to pay everything, some of your assets may have to be sold although there are other ways of handling secured debt, like a mortgage, loan on the boat, etc.

I recommend that you schedule an appointment with an estate planning attorney in your area right away. He/she can help you prepare a will and do any other planning that may be necessary. Also, you should know that if you have named your son as the beneficiary of your 401K and your life insurance plan, then he will receive those assets when you die. They do not need to be included in your will. If you designated someone else as the beneficiary of your 401K and life insurance policy, but you now want your son to be the beneficiary instead, be sure to contact the administrator of your 401K and your insurance company to change beneficiaries. Otherwise, regardless of what your will might may say, if someone other than your son is the beneficiary of those assets, that other person will be legally entitled to those funds when you die.

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