You Can't Take it With You: Understanding Money and Death

How is debt and credit handled when someone dies? This issue affects surviving family members, creditors, and the legal system, making financial planning an essential aspect of estate planning. 

Understanding how debts are managed, and the legal steps involved in handling credit posthumously can provide valuable insights into estate planning, inheritance, and the financial stability of surviving family members.

In this Episode:

• 03:52 - 7 Ways to Die in the Future: Your Spacesuit Springs a Leak
• 06:50 - Recipe of the Week: Mrs. Carter's Strawberry Cake
• 07:50 - Debt and Credit after Death, How to Prepare with Estate Planning
• 16:49 - You Can't Take it With You
• 19:31 - Outro

Show Notes and More Here: https://bit.ly/4g6qaMM

Transcript

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This podcast does not provide medical or legal advice. Please listen to the complete disclosure at the end of the recording. Hello and welcome to Everyone Dies, the podcast where we talk about serious illness, dying, death, and bereavement.

I'm Marian Matzo, a nurse practitioner, and I use my experience from working as a nurse for 46 years to help answer your questions about what happens at the end of life. And I'm Charlie Navarette, an actor in New York City, and here to offer an every-person viewpoint to our podcast. We are both here because we believe that the more you know, the better prepared you will be to make difficult decisions in a crisis.

So welcome to this week's show. Please relax, get yourself something long and cool to drink, and maybe a little melon. And thank you for spending the next hour with Charlie and me as we continue our series about death in a digital age, as we talk about money after death.

Like the BBC, we see our show as offering entertainment, enlightenment, education, and divide that into three halves to address each of these goals. Our main topic is in the second half, so feel free to fast forward to that natter-free section if you need to. In the first half, Charlie talks about the way to die in the future and has the recipe from Rosalind Carter.

In the second half, I'm going to talk about money and death. And in the third half, we have a scene from the 1938 classic film, You Can't Take It With You. So true, very true.

You can't take it with you. You can try, but you can't take it with you. You can't? No, no, no, you can't.

When's the last time you saw the snow? Oh, God, it's been a while. I saw it, I was just flipping channels and there it was, I don't know, a couple of months ago. I had not seen it, gosh, in years.

Very enjoyable. Oh, God, yeah. Yeah.

Lionel Barrymore is great in that. Yes, yes, he is. Drew's grandpa.

Yes. How was it? So Drew, no, no, nope, not Drew, no. He was her uncle, Ethel Barrymore was her aunt, John Barrymore.

Who was her father-in-law? No, she's a Barrymore. Her father was John Barrymore II or something like that. And it was, I think it was John Barrymore's last marriage.

So he was already older when he married his last wife. No, it was John Barrymore who was her grandfather and Lionel and Ethel, his aunt and uncle. Oh, okay.

Yeah. Because you said father-in-law and I said, wait a minute, now. I said father-in-law? Yeah.

What was I thinking? I have no idea. Yeah, I have no idea either. Of course, I never do.

Well, and that's two of us. There we are. So, okay.

We're in the same boat. In our first half, the publication Futurism published an article titled Seven Ways to Die in the Future. In the next seven episodes, I am going to report their predictions.

This week's prediction, boiling from the inside when your off-brand spacesuit springs a leak. You'd think that if you were going to be careening through the vast cold empty grip of outer space, you'd want the highest quality gear standing between you and the alien elements. But if you're still buying off-brand cold medicine to save a buck, that thrifty decision-making is likely to scale to otherworldly proportions.

Case in point, your off-brand spacesuit. The 500,000-plus pieces of space junk orbiting Earth are terrifying. Shrapnel travel at speeds up to 17,500 miles per hour, twisting into a tornado of metal ready to rip into your budget-conscious suit.

It's also possible that a micrometeoroid or some other piece of orbital debris could hit a part of your spaceship, like the handrails for instance, making a sharp edge that could subsequently cut your suit or glove on contact. If something does rupture your suit, don't try to hold your breath. If you try to breathe in during sudden decompression in the vacuum of space, your lungs could rupture.

Alternatively, the reduced pressure lowers the boiling point of your bodily fluids, a condition called embolism. Basically, you start to boil from the inside. The liquid water in your bloodstream and tissue turns to vapor.

This might just cause some swelling and bruising as you gasp for air, or an air bubble in the bloodstream, blocking blood from getting to the heart and lungs. Embolism isn't just a hypothesis either. One man survived it and lived to tell the tale.

In 1966, a 24-year-old NASA tech was testing a spacesuit in a vacuum chamber when he experienced a rapid loss of suit pressure. According to Michael Barrett, a physician and a NASA astronaut specializing in aerospace medicine, the man recalled the sensation of saliva boiling off his tongue before losing consciousness. Thankfully, the chamber was repressurized.

The tech was awake and alert by the next day, according to the Journal of Occupational and Environmental Medicine. In space, you likely won't be that fortunate. Luckily, you'll pass out within 15 seconds from a lack of oxygen anyway, then finally die in about another minute.

A truly out-of-this-world way to go. Our takeaway? Do not buy your spacesuit on Amazon. Despite Marianne's devotion to online shopping.

Our recipe this week is described as a Carter family favorite. The former First Lady's strawberry cake recipe is as simple as it is classic. Printed with a letterhead from the White House, the recipe calls for packaged yellow cake mix, strawberry jello, and strawberries.

The instructions direct bakers to mix, bake, and serve either plain or with whipped cream. Bon Appetit! Please go to our webpage for this week's recipe and additional resources for this program. Your tax-deductible donations are always welcome so that we can continue to offer you quality programming.

Thank you in advance for making your donation at www.everyonedies.org. That's every, the number one dies, dot org. Marianne? Thank you, Charlie. When an individual dies, their debts do not simply disappear.

Instead, the responsibility for settling these debts typically falls to the deceased estate. The estate compromises all of the deceased assets and liabilities, and its administration involves several key steps. First, an executor or personal representative is appointed to manage the estate.

This person is responsible for gathering the deceased's assets, paying any outstanding debts, and distributing the remaining assets to the heirs. Secured debts, such as mortgages and car loans, are typically settled first because they are tied to specific assets. If the deceased had a mortgage, for example, the property could be sold to repay the loan.

Unsecured debts, such as credit card debts and personal loans, are handled next. Creditors are notified of the death and, given the opportunity, file claims against the estate. If there are insufficient assets to cover all debts, unsecured creditors may receive only a portion of what they are owed.

The legal process for settling debts is governed by state probate laws, which vary widely. Probate is the judicial process of validating a will, if one exists, and overseeing the administration of the estate. It ensures that debts are paid and that the remaining assets are distributed according to the deceased wishes or state law, if there is no will.

Handling credit after death involves several legal steps and implications. One of the first steps is notifying creditors of the individual's death. This can be done by sending a copy of the death certificate to each creditor.

The executor must obtain a testamentary or letters of administration from the probate court, which gives them the legal authority to act on behalf of the estate. Once creditors are notified, they can file claims against the estate. The executor reviews these claims and determines their validity.

Valid claims are paid from the estate's assets. If the estate lacks sufficient assets to cover all debts, the executor must follow the priority rules set by state law to determine the order in which debts are paid. In some cases, the executor may negotiate with creditors to settle debts for less than the full amount owed.

Credit card companies and other lenders often close accounts upon being notified of a death. Any authorized users on the account should be aware that they are not responsible for the deceased's debts unless they are joint account holders. However, authorized users should stop using the credit cards immediately to avoid potential legal issues.

One important legal implication is that family members generally are not personally liable for the deceased's debts unless they are co-signed for the debt or live in a community property state where spouses share responsibility for debts incurred during the marriage. Understanding these legal nuances is crucial for family members to avoid unnecessary financial burdens. The financial and psychological impact of debt on bereaved families can be significant.

Financially, unresolved debts constrain family resources, especially if the deceased was the primary breadwinner. Families may face difficult decisions about selling assets, downsizing their living arrangements, or finding additional sources of income to cover outstanding debts. Psychologically, the burden of managing a loved one's debts can worsen grief and stress.

Family members may feel overwhelmed by the legal and financial responsibilities leading to anxiety and depression. The emotional toll can be particularly high for those who were unaware of the extent of the deceased's debts or who lack experience in managing financial planning. A study by Lee and Kim in 2018 found that unresolved debts often lead to prolonged grief and emotional distress among surviving family members.

The study emphasizes the importance of financial literacy and planning to ease these effects. Families who understand the legal processes and have access to financial resources are better equipped to handle the challenges of debt settlement after death. Estate planning is crucial in managing debt and credit after death.

Effective estate planning involves creating a will, establishing trusts, and designating beneficiaries for assets. It also includes setting up powers of attorney and health care directives to manage financial and medical decisions if one becomes incapacitated. A key aspect of estate planning is ensuring that debts are addressed in the estate plan.

This can involve setting aside funds specifically for debt repayment or purchasing life insurance policies that cover outstanding debts. By planning, individuals can reduce the financial burden on their heirs and ensure a smoother settlement process. Planning can prevent legal disputes and financial hardships on surviving family members, making the transition after death more manageable.

In conclusion, managing debt and credit after death involves a complex interplay of legal, financial, and emotional factors. Understanding the legal steps, financial implications, and psychological impacts can guide better estate planning and reduce the burden on surviving family members. By addressing these issues proactively, individuals can ensure that their loved ones are better prepared to navigate the financial complexities that arise after death.

Charlie, any questions? No, not so much questions, but just an observation. I'm sure you and I have both dealt with people and spoken with people whose loved one has died, and just the amount of paperwork that's involved and people you have to talk to just to put everything in order would have been so much easier to have done it while the person was alive. Yeah, so I'm speaking here to the living.

Don't, you know, take care of it. Make sure it gets done. You really, with everything Marianne described, you do not want to be caught, you know, behind the eight ball.

You know, plan ahead. And you don't want your family members cursing you for not kind of planning things and making things more difficult for them. You know, think of it as, let's make it as easy on them as I possibly can.

Get this stuff in order, and then they won't be so aggravated with you. Yes, and then it puts aggravation on them or some other emotion on them after you've just died. So if it was a very close family member, you know, treat them lovingly and take care of this before you drop dead.

You know, don't burden, they're already burdened enough with grief, don't add this layer to it. Right. Because this you can control, you can control ahead of time.

Absolutely, yes. There's mechanisms for doing it, it's relatively painless. Just do it and get it done.

Then you can forget about it. You don't have to think about it every minute of your life, just get it done and be done. Yeah, and please, please, please make sure you dot every I and cross every T, because if there's something, you know, misspelled or something not exactly clear, that can cost your loved ones money while some lawyer tries to figure out what it is.

So just take your time doing this while, you know, you are of sound mind and body. There we are. In our third half, the 1938 classic film, You Can't Take It With You, is about family and money.

Cinegrapher Alice Sycamore is in love with her boss, Toadie Kirby, who was the vice president of the powerful company owned by his greedy father, Anthony P. Kirby. Kirby Sr. is dealing a monopoly in the trade of weapons and needs to buy one last house in a 12-block area owned by Alice's grandfather, Martin Vanderhoff. However, Martin is a patriarch of an anarchic and eccentric family where the members do not care for money but about having fun and making friends.

When Toadie proposes to Alice, she states that it would be mandatory to introduce her simple and lunatic family to the snobbish Kirbys, and Toadie decides to visit Alice with his parents one day before the scheduled get-together. There is an inevitable clash of classes and lifestyles. The Kirbys spurn the Sycamores, and Alice breaks up with Toadie, changing the lives of the Kirby family.

Our scene today comes toward the end of the film. Because I'll guarantee at least they've got some friends. But you, with your jungle and long claws as you call them, you'll wind up your miserable existence without anything you can call a friend.

You may be a high mogul to yourself, Mr. Kirby, but to me, you're a failure. A failure as a man, a failure as a human being, even a failure as a father. When your time comes, I doubt if a single tear will be shed over you.

The world will probably cry good riddance. That's a nice prospect, Mr. Kirby. I hope you'll enjoy it.

I hope you'll get some comfort out of this coin you've been sweating over them. You can't take it with you, Mr. Kirby. So what good is it? As near as I can see, the only thing you can take with you is the love of your friends.

And that's it for this week's episode. Please stay tuned for the continuing saga of Everyone Dies. And thank you for listening.

This is Charlie Navarette, and from actress Linda Lavin in the TV show Mom, you know when it gets easy being a mom? When you're dead. Even then, you might worry a little. And I'm Marian Matzo, and we'll see you next week.

Remember, don't buy your spacesuit on Amazon, and every day is a gift. or other qualified health providers with any questions that you may have regarding your health. Never disregard professional medical advice or delay in seeking it because of something you have heard from this podcast.

If you think you may have a medical emergency, call your doctor or 911 immediately. Everyone Dies does not recommend or endorse any specific tests, practitioners, products, procedures, opinions, or other information that may be mentioned in this podcast. Reliance on any information provided in this podcast by persons appearing on this podcast at the invitation of Everyone Dies or by other members is solely at your own risk.