THE EVERETT ADVOCATE – FRIDAY, DECEMBER 13, 2024 Page 27 BEACON | FROM PAGE 23 is wholly unnecessary as the public currently has full and ready access to the House’s fi nancial information.” A new debate began last week about when the voter-approved law actually takes eff ect. DiZoglio at a press conference said that it takes eff ect on Dec. 5, marking 30 days from the November 5th election. Secretary of State Bill Galvin disagrees and maintains the law takes eff ect on January 4th — 30 days from the December 4 certifi cation of the November election results. RAISE THE REQUIRED MINIMUM AUTO INSURANCE COVERAGE FOR PROPERTY DAMAGE AND BODILY INJURY (H 5100) – The Senate adopted and sent to the House a Gov. Healey amendment changing the eff ective date of a new law that increases the minimum amount of liability auto insurance a driver must purchase, from $5,000 for property damage to $30,000; and for bodily injury from $20,000 per person/$40,000 per accident to $25,000/$50,000. The law approved by the Legislature was scheduled to take eff ect immediately. Healy’s amendment would delay the eff ective date to July 1, 2025. Gov. Healey said she supports the increases. “The current amounts have not been updated in over 30 years and the proposed increases would provide meaningful coverage for those who experience personal injury or property damage due to a motor vehicle accident,” said Healey. “But I also recognize that the language as currently drafted would become effective immediately upon my signature, providing insurance companies inadequate time for implementation. Insurers must update current policies and submit new forms and rates to the Commissioner of Insurance for review and approval before implementing these changes. Based on feedback from industry stakeholders, pushing out the eff ective date to July 1, 2025 will ensure that these changes take place in an orderly way.” $294.8 MILLION FOR CLEAN WATER–The Massachusetts Clean Water Trust approved $294.8 million in new low-interest loans and grants to help communities build or replace water infrastructure that enhances ground and surface water resources. Supporters said the funds will ensures the safety of drinking water, protect public health and develop resilient communities. $5 MILLION TO PROTECT FOREST LANDS–The Healey Administration announced more than $5 million in grants to protect forest land which will be managed as reserves. These projects are designed to fi ght climate change and allow forests to mature, strengthening how these habitats store carbon. The grant program, a result of the Forest as Climate Solutions Initiative, aims to designate 10 percent of Massachusetts forests as reserves, where active management is limited and natural processes play out. “Forests are our best natural carbon sinks,” said Energy and Environmental Aff airs Secretary Rebecca Tepper. “As trees age, they absorb and store more carbon dioxide – crucial in helping us fi ght climate change. By supporting community and land trust eff orts to limit land conversion and increase permanent land conservation, we are preserving forests for generations to come.” “Few things are more important than protecting our environment, and I’m elated that our state is preserving these beautiful pieces of land in Ashland and around the entire commonwealth,” said Senate President Karen Spilka (D-Ashland). TEACHER OF THE YEAR–Gov. Healey announced that that Luisa Sparrow, a special education teacher for fi fth- and sixth-grade students at the Oliver Hazard Perry School in South Boston, is the 2025 Massachusetts Teacher of the Year. The Massachusetts Teacher of the Year is the state’s top award for educators and annually recognizes excellence in teaching across Massachusetts through the selection of a teacher who exemplifi es the dedication, commitment and BEACON | SEE PAGE 28 S nior ior Sa nr Sa y Senior Senio by Jim Miller What Happens to Your Debt When You Die? Dear Savvy Senior, Can my kids inherit my debt after I die? I have taken on a lot of credit card debt over the past 10 years or so, and I’m worried that my son and daughter will get stuck with it when I die. Indebted Senior Dear Indebted, In most cases when a person with debt dies, it’s their estate, not their kids, that is legally responsible. Here’s what you should know. Debt After Death When you die, your estate – which consists of the stuff you own while you’re alive (property, investments and cash) – will be responsible for paying your debts. If you don’t have enough cash to pay your debts, your kids will have to sell your assets and pay off your creditors with the proceeds. Whatever is left over is passed along to your heirs as dictated by the terms of your will, if you have one. If you don’t have a will, the intestacy laws of the state you reside in will determine how your estate will be distributed. If, however, you die broke, or there isn’t enough money left over to pay your “unsecured debts” – credit cards, medical bills, personal loans – then your estate is declared insolvent, and your creditors will have to eat the loss. “Secured debts” – loans attached to an asset such as a house or a car – are a different story. If you have a mortgage or car loan when you die, those monthly payments will need to be made by your estate or heirs, or the lender can seize the property. There are, however, a couple of exceptions that would make your kids legally responsible for your debt after you pass away. One is if your son and/or daughter is a joint holder on a credit card account that you owe on. And the other is if either one of them co-signed a loan with you. Spouses Beware If you’re married, these same debt inheritance rules apply to surviving spouses too, unless you live in a community property state, which includes Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. In these states, any debts that one spouse acquires after the start of a marriage belongs to the other spouse too. Therefore, spouses in community property states are usually responsible for their deceased spouses’ debts. Protected Assets If you have any IRAs, 401(k) s, brokerage accounts, life insurance policies or employer-based pension plans, these are assets that creditors usually cannot get access to. That’s because these accounts typically have designated benefi ciaries, and the money goes directly to those people without passing through the estate. Settling the Estate You should also make your kids aware that if you die with debt, and you have no assets, settling your estate will be fairly simple. Your executor will need to send out letters to your creditors explaining the situation, including a copy of your death certifi cate, and that will probably take care of it. But your kids may still have to deal with aggressive debt collectors who try to guilt them into paying. If you have some assets, but not enough to pay all your debts, your state’s probate court has a distinct list of what bills get priority. The details vary by state, but generally estate administrating fees, funeral expenses, taxes and last illness medical bills get paid fi rst, followed by secured debts and lastly, credit card debts. Need Legal Help? If you or your kids have questions or need legal assistance, contact a consumer law attorney or probate attorney. If you can’t aff ord a lawyer, go to LawHelp.org to search for free legal help in your area. Send your senior questions to: Savvy Senior, P.O. Box 5443, Norman, OK 73070, or visit SavvySenior.org. Jim Miller is a contributor to the NBC Today show and author of “The Savvy Senior” book.
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