If my mother dies, does all her debt get passed onto her children and THEY are forced to pay it off, or do creditors eat the difference between the value of her estate and the money still owed?
2006-11-24 03:58:08 · 8 answers · asked by JordanP 2 in Business & Finance ➔ Credit
You are not liable for the debt of your mother when she passes.
2006-11-24 04:04:03 · answer #1 · answered by chaka 2 · 3⤊ 1⤋
All debts are handled by a personal representative named in your mother's will, (or in the event of no will, in a state court called probate ) after time of death when assets, debts, and taxes are all sorted out.
Any debtor has a claim to the estate, which gets handled by the personal representative or in probate. Creditors have a claim to the estate based on the debt owed. If the debt ends up less than the assets available, it's paid off. If the debt ends up more than the assets, the creditors each get a portion of their debt paid off, based on the decisions by the personal representative or probate court.
Debtors have a right to sue an estate for payoff.
Life insurance proceeds (which go to a named beneficiary) are NOT considered part of the estate, in most states.
Contact an attorney specializing in probate, in the state your mother resides , for more information.
2006-11-24 04:12:42 · answer #2 · answered by Anonymous · 1⤊ 0⤋
No the debt would not be passed on to you. It is her debt not yours. You would send a copy of the death certificate to those creditors to notify them of the passing. Many funeral homes will assist you in having this done. Some creditors will ask for a settlement against the estate and some of her asset. Before doing this check with an attorney to see if this must be done as some debt is considered no secured such as credit cards. If there is a house payment or car loan, then those assets would more than likely be surrender to the creditor. But most credit cards will just have to eat their loss.
If your mother does not have a will, discuss this with her and an attorney, in order to insure the transition of assets goes smooth and is not caught up in your states red tape.
My father recently passed... so my family is currently dealing with this situation.
2006-11-24 04:13:48 · answer #3 · answered by A Friend 4 · 1⤊ 0⤋
Unless you have co signed for her on any of her debt, generally the creditors will settle for the value of the estate.
If you are concerned about this you should consult a qualified estate Attorney.
2006-11-24 04:02:23 · answer #4 · answered by jim10016 1 · 2⤊ 0⤋
Her debts are not your debts although her debts will probably
be settled out of her estate before it is distributed to the heirs...
2006-11-24 04:05:56 · answer #5 · answered by Anonymous · 2⤊ 0⤋
Generaly,yes. If the value of the estate is less than the debt.
2006-11-24 04:07:28 · answer #6 · answered by S.A.M. Gunner 7212 6 · 0⤊ 2⤋
no, those laws were passed away with 500 years ago
2006-11-24 04:15:15 · answer #7 · answered by Anonymous · 1⤊ 1⤋
umm no your a different person then your mom....
2006-11-24 04:06:03 · answer #8 · answered by lauren 2 · 0⤊ 1⤋