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March 7, 2000
- Banking |
Dealing with deathLarissa FernandGranted. The death of a spouse is not something that you'd like to talk about. But morbid as it may appear, it is still a reality. It could happen and it could happen to you. The very first thing that you should do is make ample copies of the death certificate and even keep copies of your marriage certificate ready.
Finally, start dealing with creditors, if your spouse had any. Creditors are not soft-hearted enough to forfeit any loan. But you are not obligated to settle them under law. The money and assets left behind by the deceased will have to be used to settle his or her debts. These can be in either in the form of a loan or it could also mean credit card outstandings. Where the credit card is concerned, you will have to inform the credit card company by writing a letter along with a copy of the death certificate. If the dues are not much, the card company may waive it off. But if it amounts to a substantial amount, they may request you to pay at least some amount. As for other debt, if the loans were taken jointly, then it will be the obligation of the other person to settle the loan. If the loan is solely on the name of the deceased, then the Indian Succession Act comes into play. The latter specifies that the estate left by the deceased has to be used to settle all his dues. So his entire bank balance, assets and property are to be used to this end first. But the liability can only be claimed as far as the estate can bear the burden. That means if the loan or credit dues outstanding are Rs 100,000 and the dead person's assets only amount to Rs 75,000, this amount will have to be utilised in settling the debts. The family is not personally liable. The moment there is a death, the family should meet the concerned bank official (in the case of the credit card) or the loan issuing authority (in the case of a loan) and submit a letter to the effect as well as a copy of the death certificate. Banks are usually willing to negotiate the amount that has to be settled. You may take your lawyer along, if you wish.
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