Jakarta, CNBC Indonesia – Debt cases often become polemics, and can even drag on when no resolution is found. One of them is when parents have Home Ownership Credit (KPR) debt, but die before it is paid off.
Will the heirs continue the installments or pay them off?
Of course, all debts a person has that have not been paid off will be the responsibility of the heirs. However, if the heirs object and want to reject it, they can reject the inheritance of the house that has not been paid off firmly in court.
Article 1045 of the Civil Code states that no one is obliged to accept an inheritance that falls into their hands.
Rejection of inheritance is regulated in Article 1057 of the Civil Code, which states that the person who refuses must expressly reject it by providing a statement made at the clerk of the District Court in whose jurisdiction the inheritance is open.
However, if rejection occurs, the assets in the form of housing will not be able to be utilized. And it is very likely that the heirs will find it difficult to meet their basic housing needs in the future.
In fact, mortgage debt that is still being paid in installments can be paid off without having to drain the heirs' savings. For those of you who are curious, here is the complete review.
Debtors can take advantage of credit life insurance
It is natural that when someone dies, financial risks will arise which must be borne by the heirs who wish to receive their inheritance. And debt is certainly a financial burden to bear.
Insurance actually plays a role in shifting the financial burden. However, to be able to get insurance benefits, KPR customers must pay a premium accompanied by regular house installments.
By having life insurance, the remaining outstanding mortgage debt will be paid by the life insurance company. In this way, heirs can own a house that was previously still credited in full.
But how do we buy life insurance when applying for a mortgage if you use joint income credit?
If there is a first to die option, then choose that option. The first to die option states that the insurance company will pay off the mortgage debt if one of the borrowers or their spouse dies.
[Gambas:Video CNBC]
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(mij/mij)