What happens to your loans if you pass away?
in Banking, Insurance & Loans ·
Hi everyone!
I’m looking for some guidance on a specific situation. My mother passed away back in December 2008. During the probate process, I inherited her life insurance policy, though the payout was reduced by an amount earmarked for JPMorgan Chase to cover a cash loan my mother had taken out. There were no co-signers or guarantors on that loan; the policy was simply set up so that 20% of the proceeds would go directly to the bank to settle the debt.
What I’m trying to understand is the legal basis upon which the bank can come after me to repay the credit. Since they only claimed 20% of the policy to satisfy their interest, and I received the remaining balance, I thought that settled things.
Furthermore, this specific loan was never listed as part of my liabilities in the estate settlement.
I’m looking for some guidance on a specific situation. My mother passed away back in December 2008. During the probate process, I inherited her life insurance policy, though the payout was reduced by an amount earmarked for JPMorgan Chase to cover a cash loan my mother had taken out. There were no co-signers or guarantors on that loan; the policy was simply set up so that 20% of the proceeds would go directly to the bank to settle the debt.
What I’m trying to understand is the legal basis upon which the bank can come after me to repay the credit. Since they only claimed 20% of the policy to satisfy their interest, and I received the remaining balance, I thought that settled things.
Furthermore, this specific loan was never listed as part of my liabilities in the estate settlement.