Someone dies in debt, is the person with Power of Attorney liable for the debt?

Question

OHIO
- Person A has Power of Attorney for Person B
- Person B dies in debt (medical bills) that cannot be paid off by selling assets
- Is person A respsonsible for the debt of person B? They are not family.

This happened to a friend (person A) and debt collectors are calling. What should she do?

Answer 1

No, the estate is liquidated and the debts are paid proportionally, the rest is written off as bad debt and the institution's business insurance pays the balance.

Answer 2

Most likely, the executor, or the next of kin, could sell the estate, and with what they have bargain down the people that are owed money. The companies will gladly take what can be given as apposed to nothing at all.

A living person can do the same with most consumer debt and medical bills. My oldest had menningitis(sp?), and spent a week and a half in the hospital. Luckily, she is fine, but our portion of the medical bills amounted to nearly $7000. My parents decided to pay it off, so I call Texas Children's Hosp, and told them I could pay them $2500 cash at that moment to pay it off, or I would only be able to affod about $20 a month until it was paid. They took the $2500. you can do it with credit cards as well if you are persistent enough.

Sell the estate, and haggle with each person or company owed money. I am sure you, or the other person, will be able to get everything taken care of with whatever amount the estate is worth. You can bank on not having anything left though.

Answer 3

No, they are not financially responsible. The estate of the deceased is now it's own legal entity, and falls under the rules of the state concerning disposition of assets and property.

The power of attorney and all it's obligations stopped the second person B passed away.

Your friend simply has to say, "Person B died on November 22, 2006, I am not handling their estate, good bye." And hang up.

If they call again, she should tell them in no uncertain terms to cease calling her, or she will file a complaint of harrassment with the local police.

If you'd like to help her out, get a couple of certified copies of the death certificate and mail them to the medical facility billing departments along with a copy of the bills that are calling, that would stop it.

Answer 4

The estate is responsible, not the executor. If the estate has no money in it, then the debt collectors have no recourse. They just lose their money. No, your friend does not need to worry. Just tell them the estate has no money in it, and that should be an end to the issue.

Answer 5

No. the ability of lawyer enables you to sign issues and make judgements, yet continuously on behalf of the guy granting the POA. you at the instant are not to blame for his or her debts merely such as you are not getting to maintain their sources.