This part of the questionnaire asks about your debts and other financial obligations. What you owe matters as much as what you own when making a plan that works.
The page asks you to include any long-term liabilities over $10,000, and says a best-guess estimate is fine.
Why these questions matter
Your debts help your attorney understand your net estate, which is what you own minus what you owe. They also help your attorney:
- Understand how debts will be handled after death
- Make sure there is enough cash available to pay them
- Spot debts that need special planning
- Avoid surprises that could delay settling your estate
Some debts are paid automatically or are secured by a specific asset, such as a home. Others need more attention in your plan.
What to include
List debts with a balance over $10,000. Common examples:
- Home mortgages and other real estate mortgages
- Business or investment loans
- Personal loans and lines of credit
- Large tax debts
- Other large or ongoing obligations
Smaller or short-term debts usually do not need to be listed, unless you think they give useful context.
Did you say on the Current Estate Plan page that you pay child support or have other obligations to a former spouse or partner? Enter that obligation here.
If a reminder appears at the top of the page, answer the question it names first.
The fields on this page
Each debt gets its own row with three fields.
Type of Debt
Type of Debt (Select or type) lists the most common types:
- 401K loan
- Auto loan
- Business loan
- Credit card
- Education loan
- Home mortgage
- Life insurance loan
- Other real estate mortgage
If yours is not listed, type it in. Two examples:
- Charitable pledge: A promise to give money or property to a charity.
- Court order or judgment: Money you must pay under a court order, such as a settlement.
If you are unsure how to describe a debt, use plain words.
Who is responsible for the liability
Choose who is legally responsible. If the debt is yours alone, choose your name. If you and your spouse or partner share it, choose Both. Individual and joint debts can be treated differently when an estate is settled.
Amount of liability
Enter an estimated balance. Exact figures are not needed. A reasonable estimate shows how the debt fits into your overall finances.
Anything else about your finances
At the bottom of the page, a box asks you to share any additional details about your assets or liabilities that you haven’t already included.
It is a good place to mention items such as:
- Veterans benefits
- A safe deposit box, and where it is
- A life insurance policy that is about to expire
- Any unusual financial arrangement or obligation
If something feels relevant but does not fit anywhere else, put it here, so it is not overlooked.