What Happens to Debts After Death?

What happens to a person’s debts after death? Every state handles this issue a bit differently. This article discusses how debts are handled in California in the following situations:

  • Debts when a probate is required
  • Debts when assets are held in a revocable living trust
  • Situations when someone can become responsible for debts after your death
  • How you can get your finances in order before you die so your family isn’t placed in a difficult situation

In California, most debts are handled in a probate proceeding. A probate proceeding is a legal action for the administration of a decedent’s estate. When a probate is initiated, known creditors of a decedent must be contacted directly by the executor. A notice to creditors must also be published in a newspaper of general circulation. Creditors then have four months after letters are issued to the executor to file their claims. If notice requirements are followed and creditors do not file their claims within the four month period, then these debts may be time-barred. Validly filed claims may be accepted or rejected by the personal representative for the estate. The debts are paid out of the decedent’s estate prior to distribution under the decedent’s will or the laws of intestate succession.

When no probate is required, there is no statutory duty to contact creditors directly or to file a notice to creditors in a court of general circulation. This is the case when individuals fund assets, which otherwise would have been subject to probate, into a revocable living trust. In such a case, the creditor must take action themselves to either file a probate, or sue the trustee of the revocable living trust directly. In all cases in California, there is a one-year statute of limitations for claims against a decedent’s estate. Accordingly, claims that are not filed by creditors against a decedent’s estate are generally time-barred and cannot be collected.

In general, all debts of a decedent will be paid at the time of probate or trust administration before the distribution to beneficiaries. The executor or trustee will be responsible for payment of debt, and not the individual beneficiaries. However, there is an exception when an asset is left to a beneficiary subject to indebtedness. At the same time, the beneficiary could always disclaim the gift, in which case it would pass to the other beneficiaries under the decedent’s estate plan, or ultimately escheat to the state.

Note that in the case of real estate subject to indebtedness which passes to a spouse or child, Federal law (Garn-St. Germain Depository Institutions Act of 1982) provides that a “due on sale” clause under a deed of trust will not be triggered. As such, real estate can be left to a spouse or children subject to the terms of an existing loan.

We recommend that individuals execute comprehensive estate plans which address the payment of debts. By transferring assets into a revocable living trust, clients in California will avoid unnecessary intrusion into their private lives by the state. Notice and publication requirements do not exist if a probate is never initiated in California. As a result, a living trust results in substantial privacy and debt collection benefits versus a will alone. Individuals should also consider purchasing life insurance in order to address the payment of debts in the event of death.

Getting Instant Personal Loans With Bad Credit To Clear Your Financial Headache

Financial emergencies are rather unforgiving when it comes to the time granted to get them sorted out. Whether it is a final notice on a mortgage payment or an unexpected medical situation, payments are expected as close to immediately as possible. Thankfully, it is possible to secure instant personal loans with bad credit.

Why thankfully? Well, more often than not, it is a poor credit history that holds up the chances of getting vital funds quickly. So, having the opportunity to receive loan approval with no credit checks is welcome. However, there are some compromises that must be made in order to get the green light, and these need to be considered carefully.

The trick to negotiating the difficulties involved and securing the best possible terms is knowing the key factors in the application process. So, the chances of getting the personal loan instantly are greatly improved.

Is Instant Approval Real?

In truth, getting a loan approved instantly is not quite accurate, and a very quickly approved loan is perhaps more like it. What really matters is that even bad credit borrowers can get the thumbs up from a lender within a matter of minutes and have the funds in their own bank account within 4 hours, so getting instant personal loans with bad credit is no marketing ploy.

The reason lenders can offer such a fast decision on an application is down to a special process where they grant approval with no credit check. This basically means that the mistakes and troubles of the past are ignored, thus saving time.

And of course, the instant approval promise is available from online lenders because the online application form is electronically processed in just seconds. Key information like income, employment status and monthly expenditure are assessed, so the personal loan may be approved very quickly.

Instant Loans Have Limitations

So, what are the compromises that applicants need to accept? Crucially, there is a limit to the size of the loan that can be secured. Getting instant personal loans with bad credit is great, but the lenders face a higher risk of lending to a serial defaulter to make that happen.

In most cases, these loans are limited to around $2,000, but in some cases a lender may be willing to grant more. This protects them against major losses. Another move designed to protect themselves is to charge a higher interest rate. Granting approval with no credit check the normal interest bracket structure is ignored too. Instead, all applicants pay the same interest.

For most, that means paying more (perhaps 2% more) than usual, but some very poor credit borrowers will actually be paying less on the personal loan.

What Deal To Expect

It is important to be realistic when applying for any loan, but especially when reviewing the range of terms and conditions lenders set for those applying for an instant personal loan with bad credit. As well as the normal qualifying criteria, there is the need to have a working bank account. This is to accommodate the electronic transfer of funds.

The most common loan option when seeking approval with no credit check is a payday loan. The terms make it the most expensive loan available, and comes with the pressure of a repayment term of just 14 to 30 days. This is because the loan is repaid in full from the next paycheck.

How Low Interest Personal Loans Can Improve Your Financial Standing

There is a tendency to think that loans should only be applied for when short of funds or when looking to buy something significant, like a car for example. But even those of us with very good credit scores can make use of loans. In fact, through low interest personal loans a financial status can be strengthened considerably.

This might sound strange, especially given the fact that taking on a debt unnecessarily is surely a step backwards. But none of us is without any debt, and taking on a loan can be a very positive move in the push to clear them completely. By securing approval with low interest rates, for example, the added debt is minimal anyway.

To illustrate our point, we have listed three examples below where a personal loan can be used to deal with a situation and ultimately strengthen the credit reputation of the borrower. It is a kind of constructive debt, and with low interest rates charged, very affordable too.

Clearing Existing Debts

As already mentioned, none of us are completely without debt. Even if we are comfortably meeting our mortgage, credit card and auto loan repayments every month, we still have a credit obligation. Through a low interest personal loan, that obligation can be reduced greatly.

If the combined balances of existing loans and debt are $20,000, for example, a single loan of that sum could be taken out to pay off that debt in one go. Known as a consolidation loan, it means that any financial pressure that may exist can be lifted immediately.

It works because securing approval with low interest and a longer loan term means the total repayment sum each month is lower than the combined repayments of the individual loans. In some cases, it falls by as much as 50%. The result of this new personal loan is more cash to spend on other obligations.

Extra Cash For Emergencies

The fact that such significant savings can be enjoyed, and more cash is made available for other things, means that the borrower is in a better situation to deal with the unexpected. All too often, a financial emergency pops up and there is not enough put by to meet the new demand. But with a low interest personal loan, more funds are available to save for that reason.

For example, a member of the family may fall ill suddenly and need hospital care. That can prove to be quite expensive, and would normally draw funds away from essential loan and mortgage repayments. But because a new loan was borrowed, securing approval with low interest has allowed greater savings so there are funds available to pay the hospital.

Of course, a personal loan can be taken out to deal with the unexpected expense too. However, in many cases, the interest charged on quickly approved loans are not great. Having the funds to hand is a less costly option.

Increasing Home Equity

There is little doubt that your home is your biggest investment. This is often the motivating force behind home improvements, and a series of modest low interest personal loans taken out over several years can finance a number of improvements that increase the value of your home.

What this means is that home equity is increased because the gap between the mortgage balance and the home value grows. However, securing approval with low interest is important if the maximum benefit of this strategy is to be enjoyed.

Borrowing Money From a Loan Shark Is Never a Good Idea?

First of all, consider what a loan shark actually is. It is an informal or unregulated moneylender, where a short-term loan can be acquired, usually at astronomical rates of interest.

Usually, if you are considering the services of a loan shark, you are in desperate need of money and need it quickly. A loan shark knows this very well and uses this to their advantage by setting their repayments at extremely high rates of interest. No background checks are carried out or collateral secured, and these kinds of money lenders have a reputation of using some very unsavory tactics if loans are defaulted upon. They are known for resorting to blackmail or threats of violence, to enforce repayment, and due to this type of lending body being unofficial and unlicensed, you have no protection. Loan sharks are not legal and operate from outside of the law, giving you no safety net and no alternative options.

If you borrow from a loan shark and cannot make repayments, keep in mind that any threats of violence from their part can be reported. Harassment is breaking the law, so you are well within your legal rights to report them. Contact the police or your local Trading Standards Office for advice on what to do if a loan shark threatens you with violence. Borrowing from an unlicensed money lender is not breaking the law on your part, so do not hesitate to contact police if threatened. You have done nothing illegal and you will not be charged. If you would just like some advice, then contact your local Citizens Advice Bureau or Trading Standards Office on what options you have if you have borrowed from a loan shark, and are not sure if you can make the payments.

If you have not already borrowed, but are considering it, then take a moment to rethink your options. Borrowing from a loan shark may seem like a solution to your problems if you are desperate. Maybe you have defaulted on your mortgage and cannot find the best mortgage loans available to amend this. Maybe your existing mortgage lender won’t offer you a refinance mortgage rate. But going down the loan shark lending path will only cause you major problems down the line. Loan sharks are not interested in what problems you have in repaying back a loan; they are not sympathetic or understanding. If you cannot pay, they will threaten or find other ways to recoup the owed money. Reconsider what the alternatives are, talk to a local Citizens Advice Bureau officer. Find out what legal help is viable or best mortgage loans available for remortgaging, before acting in desperation.

If your income is low and credit poor, you may think that no bank or reputable lender will offer you a loan agreement. However, there are licensed lenders who can still help you, even if you require only a small amount for a short period of time. You may still have to pay a very high rate of interest on your repayments, but you will be protected by law, rather than at the hands of a loan shark. Another alternative is via a credit union. Credit unions help you work out what to borrow based on what you can realistically afford to pay back. The repayment rate is fair and affordable, so you won’t be swamped in debt and unable to repay.

8 Simple Ways To Save Money

Sometimes the toughest issue regarding saving money is simply getting started. It may be tough to work out easy ways that to save lots of money and the way to use your savings to pursue your monetary goals. This bit-by-bit guide to money-saving habits will assist you develop a practical savings set up.

1. Record Your Expenses

The first step to saving money is to work out how much you spend. Keep track of all of your expenses-that suggests that each coffee, newspaper and snack you purchase. Ideally, you’ll be able to account for each penny. Once you have got your information, organize the numbers by categories, like gas, groceries and mortgage, and total every amount. think about using your credit card or bank statements to assist you with this. If you bank on-line, you’ll be able to filter your statements to simply break down your spending.

2.Create A Budget

Once you’ve got a plan of what you spend during a month, you’ll be able to begin to prepare your recorded expenses into a possible budget. Your budget should outline how your expenses serve to your income-so you’ll be able to set up your spending and limit overspending. additionally to your monthly expenses, make sure to consider expenses that occur frequently however not monthly, like car maintenance. find a lot of info concerning making a budget.

3.Plan on Saving Money

Now that you’ve created a budget, create a savings category inside it. attempt to put away 10-15 % of your income as savings. If your expenses are so high that you simply can’t save that a lot of, it would be time to chop back. To do so, determine non-essentials that you simply will spend less on, like amusement and eating out. We’ve place along concepts for saving cash each day as well as cutting back on your fixed monthly expenses.

Tip: Considering savings a daily expense, like groceries, could be a good way to strengthen good savings habits.

4. Choose Something to Save For.

One of the simplest ways to save lots of money is to set a goal. begin by thinking of what you might need to save lots of for-anything from a deposit for a house to a vacation-then find out how long it’d take you to save for it.

Planning for Perception or Preference?

It’s hard to believe, but the holiday season is almost upon us. The leaves have dropped along with the temperature and the dreaded snowfall is imminent. It’s a time where you crave carbs, curl up in sweaters and begin the hibernation process.

Unfortunately, we are not bears and are not afforded the luxury of shutting ourselves down for a few months. At a time where all you want to do is snuggle under a blanket on the couch and binge watch all the shows you missed while doing yardwork, the demands of family, friends and work dramatically increase.

Tis the season of holiday shopping, parties and entertaining. Tis the season to exert extreme drain on our energy, wardrobe and pocketbook. Tis the season to spend.

Before you start making your list and checking it twice, it may be time to ask yourself why. Here’s a few scenarios:

  1. You’re invited to a work holiday party. Now the panic begins. What do you wear? Your first instinct will be to run out and buy a new outfit, shoes and accessories. Stop, ask why? First look through your closet, it’s very likely you have a classic outfit which would look fantastic. If that is the case, why would you buy a new one? Who are you looking to impress and do you need to?
  2. You’re hosting a soiree. If you’ve ever hosted an event at your house, you have an idea of how much it costs in both time and money. You run around cleaning your house until it’s spic and span so no one will know what it normally looks like. If these are the people you’re inviting into your home, your sanctuary, do you think they will care if there’s a little dust on the top of the mirror? If they do, perhaps you need to ask why you invite them into your home. Now comes the cost of all the party decorations, accessories, food and drink. When you add that all up, maybe it’s time to suggest meeting at a restaurant/lounge instead.
  3. You need to complete your holiday shopping. We’ve talked about this before and how easy it is to blow your budget even on a small list of people to buy for. Sit down with your list, assign an amount to each person. Then ask, why am I buying for them or why am I spending so much?

In a world where social media is the standard by which people exist, it’s easy to get sucked into the spend. The hard part is identifying if you’re doing it because you really want to or because you want to impress someone. Psychological studies have shown how much impact a like or a share affects our psyche and confidence. Why is that worth the stress and strain on your wallet?

3 Keys to a Successful Budget

Many people may not agree but having a budget in place can truly help reduce overall anxieties and stress in life. We can’t predict what the next minute will bring. However, we can do our best to plan proactively versus reactively. I do recognize every household is different. But I do believe most households strive for maintaining stability to the best of their ability. Here are 3 keys to successfully maintaining a budget (no matter if you’re a single or family household):

  1. Consistent income. I know this may seem like a ‘duh’ statement but having consistent income flowing into the home will help meet target budget goals. I know there is a huge entrepreneurial boom happening and that’s awesome! I too have started the path of developing my business. However, I am in a season where I still need my 9 to 5. And it’s by choice! No, I’m not afraid to quit my job. Based on my situation, our household needs this full-time job. I’ve been with the company for almost 14 years now and provides great medical benefits for our household. That’s important because of the medical conditions within our household. I understand starting your own business, being a freelancer, or taking a number of contractor jobs as a great way for flexibility and freedom. However, if you continue to find yourself complaining about your financial situation, then its best you find you a more permanent J.O.B!
  2. Intentionally perform better spending habits. This may include writing down the budget and stick it on your fridge to remember what bills are due. I develop the budget for our household and my husband gets frazzled if I don’t put that budget on the fridge! It’s not that he doesn’t already know because most of our bills are consistent but he likes to see it. But we must be intentional about having better spending habits. Call it a routine – discipline – habit – I don’t care! The point is be intentional and consistent.
  3. Put your money where it’s not always easily accessible. Some people do well with having a savings account with their checking account. They can go online, see money in their savings, and not be tempted to spend it. However, others don’t have that same power to resist. And that doesn’t make that person weak! That person must admit that weakness and combat it by putting their savings money in an account they can’t always see. This may mean finding other online banks to start a savings account. Some actually offer great interest rates and a low initial deposit to open the account! I encourage anyone who is serious about saving to seek a different bank if they are serious about saving money.

5 Important Tips to Get a Personal Loan Approved

You might have a smooth running life, but that in no way means that there won’t be a problem with you. You can face an emergency situation at any point of time. So, for that, you need to be careful enough. A loan at this point of time can be a savior for you. It can help you meet a financial crisis. Through a loan, you are going to get some cash that will be helpful to meet the personal needs. But getting a loan is not that simple. There are certain steps that you need to abide by so that your loan plea gets approved.

Check the Eligibility Criteria

Most of the loan providers do have an eligibility criterion. Some prefer the borrowers to be within a particular age group, generally between 21 to 65 years. Another thing that they might be checking about you is a minimum amount of earning per year. Maintain that you are not a defaulter on any of your previous loans or credit card bills.

Verify Your Credit Score

A credit score is what the lenders are going to determine before they give you a loan. So, before you apply for the loan check for the credit score so that the loan plea does not get rejected. If your scores are not good enough rectify them. This will increase your chances of getting the personal loan approved and also might fetch you attractive interest rates.

Provide Genuine Details

When you are applying for the loan, make sure to provide all details that are true to the best of your knowledge. The lenders will doubt your intentions and will cross check everything. They might consider visiting you or giving you a call personally to verify the information you have provided. So, giving them genuine details will increase your chances of getting the loan approved.

Avoid Several Applications

Aim for a realistic loan amount that is payable by you. So not ask for huge amounts because in that case the plea might get rejected. Another mistake that most people make is applying at several places. The lenders will doubt your intentions and your probability to get the loan approved will be reduced. Also, multiple applications will affect your credit scores.

Have a Stable Source of Income

Having a stable work history is sure to impress the lending institutions. If you are having a minimum of two years of experience that will be an added advantage. Try to avoid switching jobs and maintain a stable source of income.

Five Reasons for Refusal of a Personal Loan

Don’t you wish personal finance were a mandatory course in college? Unfortunately, too many of us learn by mistake. When you need a personal loan and are rejected, you might be baffled as to what went wrong- and how to fix it. Here are some clues.

NO CREDIT

No credit is a situation where you have never used credit and therefore have no credit history for the bank to review. They have no way of making an educated decision on whether or not you will pay back a personal loan based on your credit history. No credit is worse than bad credit. Qualifying for and making regular payments on these types of introductory forms of credit can overcome a “no credit” score:

· Student Loans

· Secured credit card (includes a down payment amount)

· Being added to a parent’s or spouses good credit: card, car loan, etc.

LOW CREDIT

Low credit takes on several forms. If you’re using more than 30% of your allowable debt, it can negatively impact your score. Too many inquiries from shopping around for loans will also hit you hard. Lapses in payment, defaults, or bankruptcies are giant red flags and can take a long time to rebuild from.

Other things that lenders may look at are whether or not you have sizeable assets should you default on the loan. They also check to see if your debts are diversified or if you are only carrying one type of debt.

INCOME

Proof of income is generally required when applying for a personal loan. If you are unemployed or underemployed, it can work against you in the loan approval process. Lenders may also require a work history to see how long you have been with your current employer, and to determine if you typically have job stability. Frequent job loss or change will tell a creditor that your payments may not be reliable.

PURPOSE OF THE LOAN

Believe it or not, your application can be rejected due to your proposed purpose for the loan. Financial institutions have the right to set up the parameters surrounding their disbursements and can accept or reject your application based on what you want to use the money for.

BLACKLISTING

If you’ve defaulted on debt before, your name may be put on a list of whom not to loan to,’ also known as a “Blacklist.” This will follow you around for a long time and is difficult to erase. If you do resolve the debt issues, get documents to prove the resolution.

5 Situations When Personal Loans Can Save the Day

With a rock solid credit history, you can successfully apply for personal loans and expect a swift processing of the same for meeting temporary financial glitch in life. Personal loans are all-purpose loans that can be availed as secured or unsecured loans. These can be used for multiple reasons and the purpose need not be disclosed ever to the lender.

The interest rate of loan depends on the tenure and credit score of the borrower. These can be drawn for a few months to several years as per your requirement.

5 situations when you can use personal loans as a smart financial move:

  1. When you have immediate cash needs: It is practical to use short-term personal loans to bridge the shortage of funds in your life. You can use the funds to support any of the sudden cash emergencies like medical expenses, home repair or funding a foreign trip. The purpose of loan doesn’t affect its interest rate, however your income and duration of loan does. All you need here in a planning stage is to have a strong back up plan for repaying the loan. The repayment will improve your credit score and add to your future worth at the same time.
  2. To avoid bad credit situation: In case you have lost a job or face a sudden spurt of personal expenses such as a wedding or some other expense in your life, you can take recourse on personal loans. Bad credit is a situation you should always avoid. If you have shortage of funds, rather than missing a loan repayment you can borrow some funds. The idea is to not let the score fall for temporary financial challenges.
  3. Consolidate multiple payments: When you have multiple payments to be made every month, it is better to simplify the process by consolidating the loan into one personal loan. By consolidating loans, you just have to pay a single repayment and that will pay for other loans. Availing short-term loans for bad credit is a practical means to mend mounting debts and save a financial mess.
  4. Additional funding for students: Being a student it is not always easy to keep a track on your expenses. Sometimes you need funds for reasons that your education loan misses to pay for. Herein you can apply for short-term loans for students as these are readily available. The short-term loan can also be used as a right way for building a good history.
  5. Business funding: Every new start-up or a business entity needs positive inflows. You need to maintain adequate supply of funds for maintaining sound terms with your suppliers and business associates. The short-term personal loans can be used as business loans to keep the flexibility of operations in your business.