My mother died two weeks ago. My father has alot of debts hanging over his head. When he dies, can i be held liable for his remaining debts. He has only a $5000 life insurance policy and is too old to take out another policy. I just want to make sure that the collectors cannot come after me and wipe me out financially for the debts he has accumulated.
2006-10-03 05:26:23 · 9 answers · asked by girlajeepin 2 in Business & Finance ➔ Credit
you know, that truly is one thing that (most) lawyers are good for, knowing the law- here is what i found:
Q: What is Probate Administration?
A: Probate Court is responsible for the administration of estates that pass under a Will. The Court supervises the administration process to make sure that the executor acts in accordance with the terms expressed in the Will.
Q: After the death of my spouse or family member, what do I need to do first?
A: The first steps that are taken after a death of a loved one are as follows:
Notify family members, friends, church and next of kin.
Meet with the funeral home to make the necessary funeral arrangements.
Locate the Will to determine who is listed as the executor of the estate and whether any funeral instructions have been included in the Will or attached to the Will.
Consider what immediate sources of funds are available so that you can pay bills for the first thirty (30) days until an estate plan can be established..
Q: What are the steps of Probate?
A: The steps of Probate are:
File the Will with the Court.
Send notice of the filing of the Will to all persons listed in the Will and those who would inherit if the Will were invalid.
Have the executor appointed - obtain Letters of Authority.
Appraise and value the assets.
File an inventory listing the assets in the probate estate.
Send notice of the filing of the inventory to the heirs.
Have a hearing if any beneficiary’s object to the inventory.
Resolve Will contest, if any.
Resolve creditor claims, if any.
File estate tax returns.
Transfer assets to the beneficiary in the Will.
File a final account showing all distributions from the estate..
Q: I have a power of attorney, can I still use it?
A: No, when a person dies, the power of attorney terminates. The attorney-in-fact has no legal authority to transact business on behalf of the decedent. Once the Will is admitted to probate, the executor has the legal authority to act for the estate.
Q: How do I find an attorney?
A: Usually the attorney who prepared the Will is the person who would be the attorney to administer the estate. However, some attorneys who prepare Wills do not do probate or estate administration. Furthermore, attorneys retire, move, or die. You should look for an attorney who practices in the area of estate planning and probate.
Q: What happens if there is no Will?
A: State law determines where the assets are distributed. The Court will appoint a person (usually a family member) to be the administrator of the estate.
Q: Will the estate go through probate?
A: Whether an estate goes through probate or not, depends on how the decedent held assets and what types of assets were owned at the time of death. Certain assets have to go through probate, other assets do not. The assets that avoid probate are as follows:
Jointly held property with right of survivorship;
Life insurance and annuities;
Retirement plans, IRAs and pensions;
Assets in Trust at the time of someone's death (Living Trust); \
Payable on Death (POD) and Transfer on Death (TOD) accounts.
Q: Will I have access to assets during the probate administration?
A: Estate assets are available to pay all bills, debts, claims and expenses of the decedent. Assets like real estate may be sold. Partial distributions can be made to beneficiaries after the will contest period expires (three months). Final distributions can be made after the estate taxes are filed (nine months) and creditors claims expire (one year).
Q: What happens if the decedent owned real estate in another state?
A: In addition to a probate administration in this state, an ancillary administration will occur in the other state to clear title so that the real estate can be transferred to the beneficiaries in the will.
Q: What is the role of the executor?
A: An executor (administrator if no Will) in an estate is the person who is responsible for the complete administration of the estate. They must identify and evaluate the assets, they must identify and pay all liabilities, are responsible for selling the assets that need to be sold, and are responsible for signing the final income tax and estate tax returns. Finally, the executor distributes the assets in accordance with the terms of the Will or State law if there is no Will.
Q: What does an executor get paid?
A: The court will estimate payment based on hours worked to close the estate.
Q: Will the estate have to pay estate tax?
A: Again, this depends on the size and nature of the estate plan. If everything is left to a surviving spouse, there is no estate tax because of an unlimited marital deduction. Estate tax returns must be filed even though no tax is due. If assets are left to anybody other than a surviving spouse, estate taxes are paid in Ohio for estates larger than $200,000 (2001) and $338,000 (2002); estate taxes are paid to the federal government if the estate exceeds $1,000,000 in 2002 and 2003.
Q: When is an income tax return due for the decedent?
more here:http://www.mcfe-law.com/FAQs.asp#FAQ-Probate
2006-10-03 05:48:15 · answer #1 · answered by kimandchris2 5 · 0⤊ 0⤋
No, you will not be responsible for his debts. His estate will be responsible for them.
That nmeans that any money or property he owns at the time of his death will be used to pay off the debts. If he owes more money than that can pay for, then the creditors are basically just out the money.
2006-10-03 05:28:52 · answer #2 · answered by Anonymous · 0⤊ 0⤋
No, creditors can only go after his estate. Unless you sign something saying that you will be responsible for a debt. Co-sign for a loan as an example.
2006-10-03 05:32:44 · answer #3 · answered by Judy K 3 · 0⤊ 0⤋
Generally, there is no way they can come after you personally, unless you have personally assumed the debts (by contract, or if you are a cosignor on an obligation)
For things you might inherit from him, however, his creditors may be able to get to them before anything passes to you. You may need a lawyer
2006-10-03 05:29:59 · answer #4 · answered by Anonymous · 0⤊ 0⤋
No, his estate will be responsible. The creditors will get what they can and the rest will be written off.
Luckily, you won't be held responsible.
2006-10-03 05:28:37 · answer #5 · answered by Anonymous · 0⤊ 0⤋
No, you are not responsible for his debts, his creditors will have to file liens against his estate.
2006-10-03 05:29:30 · answer #6 · answered by Anonymous · 0⤊ 0⤋
no...you will have to have an estate auction/sale and any money from that will go towards the debt...after all of his assets are gone, whatever is left will be yours
2006-10-03 05:35:02 · answer #7 · answered by Jessi 7 · 0⤊ 0⤋
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2015-02-10 03:38:00 · answer #8 · answered by Andee 1 · 0⤊ 0⤋
no, his estate is responsible for his debts.
2006-10-03 05:28:43 · answer #9 · answered by a1tommyL 5 · 0⤊ 0⤋