Your Assets for the Picking
Your estate is basically your house and everything in it. It also could include things like your vehicles, a boat, an ATV or other outdoor items. Pretty much, anything that you own is included as part of your estate. When something happens to you, that estate will go to someone that you choose as your heir. If you don’t choose someone then everything you own will go to your closest living relative, but of course, everything first has to go through probate and it has to be determined if you owe anything before your relatives can take anything else.
If You Owe
If you owe a lot of money you’ll need to pay off that debt before anyone else can take your property or money. Some debts are forgiven by your death, like credit cards. But other debts are going to be owed by your estate, like back payments for utilities or a lien on your house. If you owe any of these types of debts it means that your estate may have to go into liquidation and understanding what that means for you and your family is an important step to preparing your will.
What is Liquidation?
If you owe too much money the government can actually seize your house or the person who owns the debt can seize your property in order to make themselves ‘whole’ again. If you don’t have any ‘liquid’ funds, which means you don’t have enough money in a bank account, they have to get their money in a different way. Generally, they do this by seizing your assets and having a liquidation sale. This is similar to the estate sales and garage sales you see every summer, but it’s generally larger and it’s better advertised. They may also hire someone to come in to auction things off if they believe something is worth a lot of money.
Estate Liquidation Services Vancouver WA will help to liquidate everything that you have in order to pay off the debts that you owe. Once you’ve paid off the debts the rest of the money will be split among those people that you chose as your heirs according to your will. If the amount that you’ve specified for each of them is no longer available they’ll get a prorated share of what’s left over after the debts are all paid.
If you don’t care about who is going to get the money or how your assets are going to be divided up then you don’t need to worry about any of this. If you want to make sure that your family members and friends are going to get the items that you want them to have or the amounts of money that you want them to have, however, you’re going to need to spend some time going through your debt and working on paying it off or reaching settlement agreements. That’s how you’re going to keep your assets safe from an estate liquidation when something happens to you.