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The Ultimate Debt after Death Quiz
by Staff
Debt in old age can be a stressful and anxiety-provoking situation, especially if you are concerned that your debt will be transferred to your loved ones after you die. It is essential that you become familiar with the generalities and specifics of the laws that govern debt after death. Take this quiz and find out more about what happens to your debt after you die.

What happens to your debt when you die?

  • The debt is transferred to your next of kin.
  • Typically, debt is forgiven when you die.
  • The debt is forgiven, but the credit rating of your next of kin is tarnished.

In the United States, what government dictates the laws of debt after death?

  • municipal
  • state
  • federal

What is the first expense that is settled from your estate after you die?

  • credit card debt
  • funeral costs
  • mortgage

What is second expense that is settled from your estate after you die?

  • credit card debt
  • mortgage
  • family allowance

Let's say you have more debt than your estate can cover. What happens to that lovely family heirloom you promised your daughter after you die?

  • All debt is forgiven and your daughter receives the heirloom.
  • Your daughter must pay the value of the heirloom to the debt collectors.
  • Since the heirloom is written in the will, it is repossessed to pay off your debt.

Common property laws mean _____________________________.

  • Any property acquired after you get married is shared between you and your spouse.
  • Any property acquired before you get married becomes shared with your spouse.
  • both of the above

What happens to the debt on your home if a family members assumes the property after you die?

  • All mortgage debt would be forgiven.
  • Your family member would be responsible for paying this debt.
  • either of the above

Which of the following is safe from being reclaimed for debt repayment after you die?

  • life insurance
  • pension plan
  • both of the above

If you have significant accumulated debt, what should you do before writing your will?

  • Try paying off as much of the debt as you can.
  • Become familiar with state law regarding debt after death.
  • Distribute all family heirlooms to avoid putting them in your will.

What happens to your co-signed debt when the co-signer dies?

  • All debt is forgiven.
  • The debt becomes your sole responsibility.
  • Your debt is cut in half.