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wkate640

Responsible for one's significant other debt?

wkate640
6 years ago

One of my closest friends is a mother of three. She and the father of her children intended to get married but never did (they are in their early 40s). They are both okay with that and function as a married couple, taking very good care of their school-age children. Both work. They live together and have wills that give the other all of their possessions. He owns the house but has a home equity loan. The sad part of this story is that he has a terminal disease now that came on very quickly and will probably take him quickly. When he passes away, will she have to pay estate taxes on the house? Would it be better to put the house into some kind of trust for her or for her and the children? Will she be responsible for other debt like his car? She knows she has to see an attorney but is completely overwhelmed at the moment.

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