Many retired Americans are drowning in debt and have no intention of paying off their bills before they die, according to a recent survey conducted by CESI Debt Solutions, a nonprofit organization committed to empowering and inspiring consumers nationwide to becoming debt free.
While 44% of retirees surveyed said that they didn't have any debt at the time they retired, nearly 30% admitted to accumulating additional debt after retiring by racking up medical expenses, buying gifts, taking vacations, and paying for funeral arrangements. When asked how they planned to pay back their newly accumulated debt, only 11% said they were going back to work, 4% said they were going to sell a home or vehicle or cash in a 401(k) or IRA, and an astounding 39% said that they aren't worried at all about paying back their debt before they die.
This will certainly be a rude awakening for many surviving family members, who can be forced to sell real estate and cash out stocks and bonds to clear the debt before seeing even one penny of their inheritance. And in many cases the estate will end up insolvent and unable to pay little if any of the debt, leaving other consumers to pick up the slack and surviving family members to foot the bill for legal fees and costs to get it all straightened out.
So who isn't afraid of estate taxes? Apparently quite a few of retired Americans, who have spent it all and yet can't seem to stop spending. And the IRS certainly can't tax the estates of decedents who die owing more than they owe.
- CESI Debt Solutions National Survey: Retirement & Credit Card Debt
- Dying With Debt: A Dirty Little Retirement Secret
- Who Pays Off a Deceased Person's Debts?
- How Are a Deceased Person's Debts Handled Before and During Probate?
- Does Life Insurance Have to Be Used to Pay a Deceased Person's Bills?
- Does an IRA or 401k Have to Be Used to Pay a Deceased Person's Bills?
- Do the Other Owners Have to Pay a Deceased Tenant in Common's Final Bills?