In life, nothing is certain except death and taxes. But what happens to the money you owe once you've passed on? Let's find out and prepare accordingly!
Loans, credit cards, and mortgages all work on the assumption that we can pay back what we borrow from the bank in the future when we have the funds. But suppose the future doesn't come for us? What then? While death may not be the sexiest subject to talk about, it's still a highly important one to prepare for. With that, let's answer the question: What happens to our debts when we die?
When you're still alive, your property (which includes assets and liabilities) are just called 'your property'. You own them, and are responsible for them. Simple. However, upon your death, your property will be called your 'estate'. It doesn't matter if you never owned any land, that's just what everybody calls it.
Upon your death, an administrator (or several) will be appointed to manage your estate (either by yourself through your will or by the government if you never got around to writing one). Your creditors will then have the legal right to retrive the amount you still owe from your estate. This includes taking ownership of your house for auction, repossessing your vehicle, or other methods to get their cash back. In fact, until all your debts are repaid, the distribution of your estate to your kin as per your will won't take effect.
Will They Go After My Family?
Often, the administrators to your estate will be your next of kin (even the government appointed ones) and yes, they'll be responsible in managing your estate should your creditors come for their cash.
However, they do not have the right to go after the administrators themselves and insist that they pay out of their own capabilities. Remember: your creditors are only entitled to your estate, not the administrators.
There is an exception to this rule, though. If someone else was jointly liable on the debt together with the deceased. In this case, the surviving co-signee will have to repay the rest of the debt on their own, and the bank won't be wrong to chase after them.
What if My Estate is Not Enough to Pay Off My Debts?
In this situation, banks may be willing to write off any unpaid amounts as losses and move on. But, there have been cases where creditors insist on getting their payment from family members and even threaten to sue. Should this happen, we suggest contacting an attorney to figure out your next move. Things can get complicated should the banks decide to move things this way and it's best to get legal counsel.
In order to truly protect your loved ones from bearing the brunt of your financial dealings, be sure to get your loans, credit cards, and other debt insured whenever possible. They may be a little pricey now, but there's no price too expensive for peace of mind. Speaking of getting insured, check out our insurance comparison tool to find the best way to protect you and your loved ones from the unexpected. Do you have anything to contribute to this article? Share your thoughts with us in the comments section below!
0 comments
Agree or disagree with this post? Questions? Be the first to post!
Either paying your debts off or achieving your goals, CashFirst is your go-to personal loan. Borrow for up to 7 years at low interest rates starting from 3.99% p.a. flat and get approved quickly.
A flat rate unsecured Islamic Personal Financing with low monthly instalments and super fast approval! Get your cash today from as low as 3.99% p.a. flat.
AmBank personal loan charges zero processing fee and competitive interest rate with higher financing limit and flexible repayment. 5% rebate for prompt paymaster!
An unsecured Islamic personal financing requires no collateral or guarantors and charges zero processing fee. Get 5% rebate every year for prompt repayment!
Fulfill your personal needs or liberate yourself from debts with a Shariah compliant personal financing plan at low profit rate and flexible repayment terms
For employees in the public sector: consolidate all your debt, renovate your home or pay for immediate needs with a fast approval Shariah compliant personal financing from Bank Islam
No hidden charges, no guarantor, no deposit and no processing fee personal financing with up to RM200,000 financing limit and competitive floating rate.
An unsecured Islamic personal loan package for the medical practitioners with competitive and flat profit rate, higher financing limits and flexible repayments
A flat rate unsecured Islamic personal loan for Senior Citizens with low income requirement to realize your retirement goals. No guarantor is required!
An unsecured BSN personal loan exclusively for executives from multinational, private, or government link companies at competitive interest rates and flexible repayment terms
Borrow up to 8x your monthly salary for maximum 5 years with CIMB Islamic personal loan. Receive instant approval, 100% cash disbursement and rebate for early settlement.
An unsecured personal loan from Hong Leong Bank with flexible tenure, low repayments and no guarantor or collateral required! Get your loan approved within 48 hours!
Borrow up to a maximum of RM100,000 with low fixed monthly instalment for up to 6 years. Easy to apply personal loan charges zero processing and Stamp Duty fees!
Easy to apply Islamic personal loan that charges zero for documents stamping and processing fees with low monthly repayment and optional Takaful protection
A personal loan with low repayments, flexible tenure up to 5 years, no hidden fees or charges, plus on the spot approval. Everything's a breeze when you're banking with RHB Easy!
An unsecured personal loan that provides financing up to 7 years with competitive interest rates lets you to fulfill your desire to pursue an ideal lifestyle.
Get Giant Voucher worth RM 200 or RM 400 - Only at RinggitPlus
Exclusively for pensioners of Malaysian government servant, achieve your retirement goals with a flat rate Islamic personal financing - no guarantor is required!
Malaysia’s first personal loan that works with a Platinum credit card - access up to RM250,000 financing at low and fixed interest rate with flexible repayment terms up to 5 years.
Complimentary RM50 Giant Gift Card - Only at RinggitPlus!
Finance your business and lifestyle opportunity at zero processing cost, low flat profit rate and flexible repayment tenures with a Shariah compliant personal financing
Buying a new home or starting a business venture? Get the right personal loan to kick start your dreams with UOB - fast approved, no guarantor, no hidden fees, low monthly instalment!
A personal financing secured against a Bank Islam Fixed Deposit, Structured Investment, or Unit Trust. Flexible financing tenures with no hidden fees and charges!
This is an personal overdraft with easy access to cash at any Citibank ATMs nationwide with your Ready Credit bank card. Pay low interest only when you make withdrawals!
Get up to RM150,000 personal financing for maximum 10 years at flat and floating profit rate with Bank Rakyat - designed to fulfill your current financial needs.
A low and flat rate MBSB personal financing offering higher financing limits and longer repayment tenures, open to all government and selected GLC employees
Floating rate personal financing for low income earner in the public sector with competitive profit rate, higher financing limit and longer repayment tenure
For those working in the public sector, GLC companies and its subsidiaries, borrow up to RM200,000 for maximum 10 years and choose to repay over competitive fixed or floating profit rate.
Hassle-free Islamic financing with no hidden fees, no guarantor, and affordable monthly payment. High financing up to RM150,000 for new customers with RM5,000 monthly salary.
Part finance your dream and venture with MBSB personal financing, offering higher financing limits, flat and fixed profit rate, and longer repayment tenures. No guarantor is required!
Want to own and develop agricultural land but lack the funds? Secure up to 90% margin of financing with repayment periods up to 20 years at competitive flat profit rate!
A fast approval government servant personal financing with repayment via salary deduction and Takaful coverage in the event of death and total permanent disability.
MBSB personal financing for public and private sector employees at flat profit rate. Get up to RM400,000-worth of financing to meet your financial needs!
Exclusive BSN personal loan for Federal Government servants with low interest rates, low income requirement, optional insurance coverage and no lock-in period!
Receive no-claim discounts and 24-Hours cashless admission at hospitals in Malaysia. Just present your Uni.Asia medical card for immediate admission with no cash deposit required.
Sign up with MAA Takaful Medical Insurance for the right medical plan. This comprehensive hospital and surgical plan provides you and your family the best medical support, including funeral benefits.
Just present your Sihat Malaysia card at any panel healthcare providers nationwide for easy admissions. Have peace of mind with 24-hour assistance, and discount privileges for the family.
A well rounded medical insurance plan fit for the family. Worry no more about hefty hospital or surgery bills with Manulife. Enjoy coverage whether locally or overseas!
This is a medical policy that is renewable up to 75 years old. Benefits include the choice to pick from 4 different plans, with high lifetime limits, and added personal accident cover.
This medical coverage plans rewards you in health, and eases your worries in sickness. Enjoy an annual limit increase every three years with zero co-insurance payments.
Protect yourself against the high cost of medical treatment by getting a medical insurance. This is one of a soultion in which it can covers you for some selected hospital treatments.
Don't let rising medical costs bring you down. Be prepared to protect your loved ones with a medical card that provides high lifetime limit. Overseas coverage included!
With Lonpac medical insurance, you can enjoy a whole lot of medical benefits up until the age of 70. Additionally, enjoy 10% premium discount when you cover your family under this policy.
Hospitalisation costs can put a dent on your life savings, so get covered today with low insurance premiums, complete medical coverage, and family discounts.
A comprehensive medical rider for investment-linked insurance plans. With this policy, you have medical protection to cushion the effects of unexpected medical emergencies.
A medical insurance plan that will have your back against rising hospitalisation expenses. Claim for both inpatient and outpatient treatment such as kidney dialysis and cancer.
This is a standalone medical insurance that provides you with quality medical treatment to ensure your loved-ones have the protection they need at all times.
Get yourself and family covered under one medical insurance with no lifetime limit. Enjoy quality and continuous healthcare and treatment without feeling the effects of rising hospital fees.
Have complete financial support when your heath decides to let you down. Your policy will pay the cost of your medical treatment which would otherwise burden your finances.
24 hours protection for you and your family anywhere you are, whether at home or holiday abroad. Leave all the hassle to your insurer with easy hospital admissions.
Besides basic medical cover, this insurance plan will also insure you against major illnesses such as heart attacks and cancer. Receive up to 15% family premium discounts!
Overcome expensive medical cost with Allianz Care Plus. With up to 4 medical insurance plans to choose from, you can get yourself covered and restored tip-top shape!
Enjoy healthy living with medical protection at 70 panel hospitals nationwide. As your life changes, you will be given the flexibility to alter your takaful policy to meet all your needs.
Get yourself prepared for any future health problems with up to 4 coverage plans, each catered to suit your needs. Gain access to worldwide medical assistance and evacuation!
Thinking of starting a family? Protect the people that matter most with a medical plan that rewards expecting mothers with maternity complication coverage.
Life comes with sometimes unpleasant surprises. HealthEnrich Advanced takes the lead to help you plan your healthcare needs with advanced protection and waived deposits at preferred hospitals.
Enjoy extra privileges and treatment when you are hospitalised at any preferred hospital nationwide. High coverage limit to keep all your worries at bay.
Get your family insured with a high lifetime limit to help you pay off all your medical bills, so you can concentrate on recovering. Have the benefit of specialist consultations and 24-hour assistance.
Illness and injuries come uninvited. Be prepared or bear paying for expensive medical bills coming your way. Get you and your family insured for as low less than RM1 a day.
With up to 5 affordable plans to choose from, you can get insured for life threatening disease treatments and received double medical protection if you are hospitalised oversea.
Just present your Etiqa medical card at the nearest panel hospital and receive immediate medical treatment. Claim for hospitalisation and surgery fees up to the age of 75.
Living a healthy lifestyle does not guarantee better health. Prepare yourself financially and overcome high medical cost later with Medi-Pac Insurance plan.
An essential medical card with ZERO co-insurance charges and no lifetime limit to protect your loved ones. Apply online today for a standalone medical plan or upgrade to a comprehensive family protection plan!
High medical costs can get out of hand. At an affordable price, Medic Partner will provide payment for bills at panel hospitals or clinics in Malaysia.
Premier Medic Partner offers comprehensive coverage to protect you against sports injuries and major illnesses. Have the assurance of high coverage at affordable prices.
Receive comprehensive coverage with a choice of up to 8 affordable medical plans to choose from. No co-takaful needed and get 15% cash back on your premiums!
Hong Leong Assurance gives you comprehensive and enhanced protection with high lifetime and annual limit as well as worldwide coverage. Choose from 4 attractive plans.
Compete protection anywhere and anytime! Have all your medical expenses subsidised to help lessen your financial burdens when you are admitted to the hospital.
Have all your medical bills covered until you reach the ripe old age of 100! Enjoy additional 5% on your annual limit every 2 years when you don't make a claim!
You need not worry about hospitalisation or surgery costs with Hong Leong Assurance. Find financial security with free hospital admissions and 24-hour worldwide coverage.
AXA Affin Medical Care Plus get you covered for up to RM500,000 every year. Worry less with continuous and uninterrupted health care with no lifetime limit.
Allow AXA Affin to soften the blow to your finances when you are hospitalised or in need for surgery. Focus instead on your recovery with no co-insurance or lifetime limit.
Gives you wide range of options when choosing the perfect medical coverage for your needs. Enjoy zero deductibles once you've reached retirement and worry no more about hospital bills!
The last thing you'd want to worry about in the surgery room is getting the hospital bills paid. Apply for a health plan that supports you financially through thick and thin.
Illness can strike without warning, but MSIG can help. Cover all your medical needs while giving you the flexibility to choose the protection that you want.
Protect the two most important things in life, your health and wallet! ACE Jerneh provides a range of medical benefits including outpatient treatment and cashless hospital admissions.
A medical insurance policy that offers more than basic hospitalisation protection. Coverage include outpatient benefits, home nursing, and compensation for accidental death.
Helfy treatment bills getting you down? Sign-up with Kurnia for complete medical protection. Seek second medical opinion from leading hospitals and enjoy family premium discounts.
Have easy admission to Kurnia panel hospitals and clinics without the need for a deposit or co-insurance! Adults aged up to 65 years old are eligible to apply .
Protect yourself against female cancer, pregnancy complications, and emergency reconstructive surgery due to an accident. Females aged 19 to 65 are encouraged to apply.
Enjoy your days in the sun after retirement with a complete medical coverage plan. Get compensation for all your hospitalisation and surgery bills at all panel hospitals in Malaysia.
A medical insurance plan designed to provide you and your family with a comprehensive health plan that will facilitate hospital admission when it matters most.
Full reimbursement up to the overall annual limit, with choice of deductibles, giving you the freedom to determine the amount of coverage you get. Additional outpatient benefits included.
A health plan that helps you with hassle free admissions at hospitals nationwide. Added benefits include second surgical opinion, and overseas inpatient treatment.
Be rewarded with automatic coverage upgrades, no claim bonuses, and choice of co-insurance with the PRUhealth rider benefit. You can even claim for medical treatment overseas.
Have the option to change your medical coverage amount every year, whatever is best for your current needs. You can enjoy up to 20 times your lifetime limit for complete protection!
Great coverage and choice of plans, allowing you to be admitted to the hospital without the fuss, no deposit required! There's no need for for a medical check-up when renewing your policy.
Stay healthy to enjoy no-claim discounts every year! Benefit from no lifetime limit, no co-Takaful payments, and specialist consultation when diagnosed with a serious illness.
Attach this medical plan to any of Maybank life insurance plans for added benefits and stay prepared when the unexpected happens. Rest comfortably even during your hospitalisation.
Extend your insurance coverage to access more medical benefits, making your recovery that more comfortable with fast admissions and 24-hour emergency help.
Focus on the things that matter most! Let ACE Jerneh take care of paying your hospital bills while you recover and spend precious time with your loved ones.
Live in JB but work in Singapore? Get a medical card that extends 100% of your medical and surgical benefits when in SG. Choose 5 different plans with deductibles as low as RM30,000 a year.
Get comprehensive medical and surgery benefits! Enjoy whole life coverage up to age 99, wide choice of panel hospitals, and protection even when you're on holiday overseas.
Enjoy lower medical bills with free admission to panel hospitals, international travel assistance, and home nursing benefits. Choose a plan that suits your lifestyle!
Be rewarded for staying healthy! Get high premium discount at renewal with 24-hour protection, worldwide coverage, and extra death and total disability benefits.
A comprehensive medical insurance plan with the option to get expert medical advise, no claim bonuses, and post-hospitalisation treatment to help your recovery!
A healthcare plan for seniors with low co-insurance payments, cancer and diabetes treatment claims, and affordable flat premiums throughout your policy period.
Focus on recovery, let Prudential do the rest. Claim up to RM2 million for outpatient medical treatment, pregnancy complications, home nursing care, and more.
Enjoy essential health care without having to worry about the rising costs, let Zurich take care of the expenses while you recover. Get quick and convenient hospitalisation & treatment at any panel hospital.
Don't let exorbitant hospital bills destroy your savings plan! Pay as little as a packet of nasi lemak a day to get financial protection for hospitalisation and extra death benefits.
Free yourself from the burden of costly medical and hospitalisation expenses when you are at your retirement age. Equip yourself with a medical insurance that provides comprehensive coverage with no lifetime limit!
Safeguard yourself against uncertainty and absurdly expensive healthcare cost with Great Eastern medical insurance. Get your loved ones protected at an affordable price and enjoy serenity and peace in your life.
Take your healthcare protection up to another notch with this plan as it covers not only the ordinary medical expenses but also major illnesses such as heart attack, stroke and coma. Also, enjoy 15% discount on family plan!
Stay protected all round the clock wherever you are, be it at home or travelling abroad. Enjoy comprehensive coverage up to age 70 years old for you and your family.
Choosing the right medical insurance is essential in relieving you of the ever rising medical cost. Boost your coverage to a whole new level with the unparalleled combo of ManuMedic and ManuMedic+!
Free Multi-Function Mini Jump Starter - Only at RinggitPlus!
Zurich Omni Health takes a step further than just covering your medical bills. Stay in the pink of health and you will get rewarded with premium discounts. Already have particular health setback when purchasing this plan? Zurich will help you bounce back up!
0 comments
Agree or disagree with this post? Questions? Be the first to post!