If my husband took out a loan, willI be responsible for it if he dies?

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If my husband took out a loan, willI be responsible for it if he dies?

My husband signed for a $100,000 loan for his business and I’m worried if he dies, that I will have to pay for it or give up our home to pay for it.

Asked on September 15, 2010 under Bankruptcy Law, Florida

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Is it a personal loan and did he use the house as collateral to get it?  Is it a business loan in a business name?  This will matter.  Generally you would not be responsible but his estate would be responsible.  If all your assets are joint and go to you upon his death you may be fine, but that will not stop them from trying to collect and suing you.  Here is what I would suggest: taking out a life insurance policy for the amount of the loan to insure that if he does die you will not be stuck with the debt.  You have what is known as an insurable interest in his life and you can take out the policy and be the beneficiary no problem.  I would also seek help from an estate planner in your area.  Good luck.


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