Michael Jackson's Debt - Settle Your Debt Before It's Too Late

Everyone is talking about Michael Jackson, his debt, his legacy, and his kids. You can’t turn on the television without seeing Michael Jackson’s face or hearing his music. Needless to say, it’s been an interesting few days and it will probably only get more interesting as Michael’s will is understood.

What we want to deal with today is Michael Jackson’s debt, his family’s new debt, and who will have to pay off his millions. When you pass, you want your family to be secure in the knowledge that your debt will not be transferred to them. You don’t want your unsettled debt and stress to be passed along to your family. However, when we are struggling and drowning in our own debt and worrying about how we’re going to make our next mortgage or car payment, getting out of debt to save our family from it is the last thing on our minds. Let me tell you though, it should be the first.

Michael Jackson was reportedly in debt over $400 million at the time of his death. Many of us will not even come close to making that much money in one lifetime. Jackson’s debt was nearly half-a-billion dollars! If you can wrap your head around that number, you might begin to grasp what kind of debt Michael Jackson’s family is left with. His net worth is unclear at the moment, which would be considered when deciding how to pay his debt.

When you pass, whether or not your family is responsible for your outstanding debt usually depends on what else you leave behind. The debt has to be paid, one way or another, and it could mean your family’s inheritance, the house you left to your children, your old baseball cards, or anything that credit card companies could use to pay for your unsettled debt.

Laws in each state tend to vary, so in California your family might be responsible for this percentage of your debt, while in Texas they might be responsible for a different amount. Everything varies and it’s incredibly important that you understand these things. It is also crucial that you have a will. Many financial questions will be answered by what you state in your will. Michael Jackson’s will left his entire estate to the family trust.

It is extremely important that you get out of debt before you pass so that your family is not burdened with more stress. The last thing that you want your children to have to deal with during that rough emotional time is how your unsettled debt is going to be paid and what items of your will be sold.