Is estate my mom's or dads and what are dad's creditors rights?

Question

My dad died suddenly, and my mom died a few days after him. They had a jointly owned with right of survivorship checking/savings account, as well as jointly owned their house. Since my dad died first, do the accounts and house automatically become part of HER estate, since she survived my dad? The reason I ask is that he had about $4000 in credit card debt (in his own name, mom didn't have that card) and I think the creditors can't get anything because everything became my mom's upon his death. Is this correct? Both lived in New Jersey. Thanks.

More info...NJ isn't a community property state.

My mom was not a co signer on the credit card.

I do plan to see an estate attorney, but did some researching on the net first and didn't find much...wondered if anyone had info here. :)

Answer 1

Your mom not only inherited your dads money, but his debt as well. If she had survived, she would have had to pay his creditors.

Answer 2

You need to consult with a probate lawyer in New Jersey to get a better answer. In most states that I am aware of, inheriting property by joint tenancy usually means the creditors of the decedent cannot touch it. However, your mother have have been a co-signer on the account and she may be jointly liable for the debt. I don't know if New Jersey is a community property state, but that might also have some impact on your situation. The responses you have received so far appear to be based on speculation, so I would just go see an attorney in your state.

Answer 3

You are only partly correct. Your father's passing (without a will to the contrary) would cause his estate to pass to his wife, your mother.

Unfortunately, a person can only inherit a whole estate, not just the parts they want. The estate included assets and debts. Your mom would not have been permitted to only accept the assets and not the debts. Instead, the assets of the estate have to be used to pay off the debts of the estate. (This is a big part of "probate" that you may have heard about.) Therefore, whoever inherited your mom's estate will also have inherited your dad's estate, with its debts. They will only be permitted to keep the "residue" of the estate -- the part remaining after the debts have been cleared.

Although the debts are still legally in force, you might consider contacting the creditor companies and explaining the situation. Considering the family's loss, it is possible the companies might be persuaded to write off the debt. It is also not too uncommon for credit card accounts to include insurance expressly for the purpose of paying off balances in the event of the cardholders' death or incapacitation. One of these routes might enable you to avoid the debts.

I am really sorry for your losses, by the way, and I hope things turn out well for you.

Answer 4

I did some research and couldn't find a good answer for you; but I'm guessing she would inherit his debt as well as his money. Talk to an estate lawyer.