Q: If I paid for my car with cash and I owe no money on it, can the state take it to pay my credit card debts when I die? I have credit card and student loan debt.
A: If you died and an estate was opened, all of your debts would become debts of the estate and would be paid in an order which favors certain debts over others. Funeral expenses, administration costs, attorney’s fees, certain medical bills and inheritance tax and income taxes are given preference. Unsecured creditors are then paid with what is left. If there is money remaining after all expenses are paid, then the heirs are paid. Your car loan is an unsecured debt. The lender would need to file a claim with the court. If there was money remaining to pay, the lender would be paid. As for your student loan, if you die before it is paid, the balance is forgiven.
Q: My mother is 59 and has a dual defibrillator in her heart, very lucky she survived the two-day surgery. She worked in real estate over 30 years and due to her heart is now on SSDI. Many of the things she requires are either not covered or have a high copay. A friend from church encouraged her to do a medical GoFundMe, as she is currently skipping medicines and appointments the times she can’t afford her share. I have heard that people with SSI/Medicaid can be negatively affected by GoFundMe, however my mother is on SSDI and not on Medicaid. I worry for her health, but she is definitely more focused on not wanting to hurt her SSDI or hit tax concerns. Sincerely, a concerned daughter.
A: Income derived from a go-fund me account will not affect SSDI. This is because SSDI does not put a limit on unearned income or assets an individual has. Medicaid and SSI are different as they are means test program that look at all the assets and income of an individual. You should review all of the facts with an attorney and an accountant.