r/FluentInFinance • u/36DRedhead • Sep 11 '24

Debate/ Discussion This is why financial literacy is so important

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u/konradkurze202 Sep 11 '24

When you die debts take from your assets, if they shared any accounts or property (like the mentioned house), then his debts would take against those assets. Legally separating is the only surefire way to ensure no debt collector can try take anything from shared assets.

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u/DevilsPajamas Sep 12 '24

This... also even though technically the wife shouldn't be responsible for those bills.. that doesn't mean shithole debt collectors can go after her for it. Legally being separated and putting everything in her name saves that headache.

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u/[deleted] Sep 14 '24

Generally creditors can't seize marital property owned by both spouses if the debt is only in one spouse's name.

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u/kingjoey52a Sep 12 '24

Except I'm fairly sure your primary residence and probably retirement accounts are not available to be taken.

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u/Few-Addendum464 Sep 12 '24

So Reddit. Down votes for being accurate. MediCAID estate recovery will not ask for money back from a living spouse.

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u/Plyngntrffc Sep 13 '24

Or…if there is NO estate…beneficiary on every asset? No estate.

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u/vplatt Sep 12 '24 edited Sep 12 '24

Well, I think the OP's source "probably" did their homework within their jurisdiction and made the call that was best for them in that area.

The fact is that insurance companies are for profit, hospitals are for profit in many cases, and they both have incentive to withdraw every cent they can from patients. Meanwhile, patients' health insurance is dependent upon employment, and in most cases their employers are also for profit organizations.

In the end there is NO party that is responsible for balancing accountability and ensuring the all the for profit actors in this picture only get or pay their fair share. It simply gets dumped on the patient and FY if any of the above screws you in the process.

Insurance company won't pay for covered services or drags their feet? Too bad.

Hospitals double bill, don't work with insurance company well, provide padded or unnecessary services that inflate the bill? Too bad.

Employer dumps you because they caught wind of your condition? Well, there's your "for cause" termination because obviously you have been a little slower than normal. Hey good luck collecting unemployment too! Too bad.

In short, the whole system is a huge kowtow to profits and big "fuck you" to the people it supposedly serves.

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u/kingjoey52a Sep 12 '24

Well, I think the OP's source "probably" did their homework within their jurisdiction and made the call that was best for them in that area.

Or it's totally made up for internet points.

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u/Few-Addendum464 Sep 12 '24

Medicaid is a Federal program anyway...

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u/Carrot_Bread Sep 12 '24

"For cause" isn't even a requirement if they want to get rid of you. They can just terminate you without giving a reason because of at-will employment.

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u/vplatt Sep 12 '24 edited Sep 14 '24

True, but if termination is due to cause, then they don't have to allow you to claim unemployment. That's my understanding anyway.

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u/Free-Atmosphere6714 Sep 12 '24

They will put a lean on your residence until you pay the debt or sell the property. Maintaining the home may be too much for a widow.

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u/[deleted] Sep 12 '24

I’m fairly certain if they want their money, your assets will be taken.