Surviving Spouse Debt Questions
(Illinois) My wife recently passed away. While I understand that debts are the responsibility of the “estate” I’m not 100% sure what the “estate” actually entails.
We own a house together with an outstanding mortgage. We have joint bank accounts with actual cash on hand of under $10k. Her car has a few remaining payments on it, but is in her name. She had a decent life insurance policy where I can pay off any and all outstanding debts. I plan on paying off the mortgage and her car loan, as those are secured debts where i want to keep the property.
My question is specifically credit card and medical debt. All debt in question is in her name only. My understanding is that upon her passing, the house becomes mine. Is that included in her “estate?” Also, since i am the beneficiary for the life insurance, I would imagine any funds left over after paying the mortgage and a few other debts become mine and are not included in her “estate.”
I’d rather not pay a credit card or medical debt if I don’t have to.
Other than the house and car, I can’t think of any other assets that are solely hers that might be included as part of an “estate.”