My mom had a personal loan with Bank and recently passed away — what happens to the loan?
Hello, I’m hoping someone can help or share their experience. My mom recently passed away and we found out she had a personal loan with Bank (possibly also a credit card/credit-to-cash loan, but we’re still checking).
We, her children, did not co-sign anything and we’re not sure about the loan details yet. She also does not have an estate/assets to settle the debt from.
My questions are:
Are family members/children automatically responsible for paying her personal loan?
Does the bank usually require payment from the family if there’s no estate?
Is there usually loan insurance that covers this situation?
What documents should we prepare before talking to the bank?
We’re planning to speak with Bank, but I wanted to understand what to expect first. Thank you.