My Gr Aunt CREDIT CARD will Power of Attorney have to pay the bills-If my aunt die she is 96 years old?

Question

Her only income is her SS Check--can she ask that the bill be written off. I do not think they can take her check--My cousin is her Power of Attorney....I am sure she is responsible for some of the charges....I would like to think she has abused her Power.
If her bills are written off --Will this make her credit bad? Sometime she has to get her medicine on her credit card...I told my cousin to keep one card or will she have to close her one card?
My Aunt is 96 years old and has early Demenita..i do not live in the same state as my Aunt and cousin.

....I would like to think she has abused her Power.
I MEANT I WOULD SHE WOULD NOT ABUSE HER POWER OF ATTPRNEY

Answer 1

No the POA will not have to pay the bills when she dies. Normally her estate ( house ) would. If she owns her house outright and leaves the proceeds of the house to people in her will then sometimes they take out what she owed on her credit card out first.

Example...she owns a house that is worth $150,000

She dies and owes $15,000 in debt. They take the 15,000 from the 150,000 THEN split up the rest of give the rest to whoever she leaves it to in her will.

If she doesnt own her house now, when she dies if no one takes over the credit card then useally it is just written off by the bank.

Hope that helps.

Answer 2

Powers of Attorney are only good/valid while the principal (Great Aunt) is alive. Once she dies, the power of attorney "dies" with her. At this point her Last Will and Testament takes over and the Personal Representative (Executor) appointed takes over and handles any bills left by the Textatrix/Testator (Great Aunt).

Some people have Durable Powers of Attorney also knows and "Springing" - this means that they do not become invalid if the principal (Great Aunt) becomes incapacitated.

There are General POAs (also known as financial poas), Health Care POAs (for medical purposes only), Mental Health POAs (for MENTAL purposes only) - and then there's the Living Will...but that's a different subject.

Just because your Great Aunt is 96 years old and is on a limited income - doesn't mean she is given a waiver to not pay a credit card bill she ran up - even if it was to buy needed drugs.

If you are concerned whether the credit card company can garnish her SS check - you should probably check with a bankruptcy attorney - I believe they can't garnish either a SS income check nor a SS disability check = but, its better to be safe than sorry.

I don't believe your cousin will be personally liable to pay the bills out of her pocket - but your question above asks....will POA have to pay bills if your 96 year old aunt dies......well, funeral expenses come first - and if there's anything left then yes, she should pay what she can.

Some states use the 4 months creditor's claim period after someone dies - but this involves publishing a notice to creditors in the newspaper -

If I were you or if I was your cousin - I would seek the advice of an estate planning attorney IN THE STATE where your aunt resides - MANY of them offer a free consultation - take them up on that offer - and get the free advice that you need.

Answer 3

Don't worry about ruining your aunt's credit, she is in no position to use it anyway. your cousin is only responsible to manage your aunts money while she is alive. Unless she commits fraud, she has no personal liability. Any assets owned by your aunt when she dies must be used to pay her debts before her heirs can inherit anything. If there are not enough assets to cover the debts, everyone is out of luck.

Answer 4

Power of Attorney means that your cousin is authorised to act on behalf of your aunt. Nothing more. She is not responsible for any of her debts.

When your aunt dies, the power of attorney expires. Her creditors will have the first claim on her estate. If her estate does not have sufficient funds, they will have to go short.

No one is responsible for your aunt's debts, unless they have signed any contract or acted as guarantors

Answer 5

it somewhat is obtrusive that she did not have her aunt's permission to apply the mastercard. Your chum is answerable for mastercard fraud. that's what she may be be charged with. Being sixteen does not excuse her offender habit. that's what the juvenile justice gadget is for, prosecuting and punishing underage offenders .