Mom died. Am I responsible for her bills? No estate but had insurance $ from my father's death that I now hold

Question

My mother passed away and had credit card bills. She had no estate (property, etc). She did have some money from an insurance policy when my Father passed away. I have this money in my possession. Am I responsible for the credit card debt? Can the credit card companies come after me?

Answer 1

You do not say HOW you came into possession of this money from your late mother. If you are merely managing the money asset for her, and it still bears her name on any account, then it is part of her estate. If your mother gifted the money to you, then it is yours and not part of her estate.

Without knowing all the particulars, it is difficult to provide a quality response. I suggest checking with an attorney for further guidance.

Answer 2

Debts are not inheritable, but the money she had from the insurance policy IS part of her estate. If it was not legally transferred to you through probate, it's still her estate's money, and should be used to pay the debts. Then the probate court would distribute any remnants according to her will or state law.


You need to consult an estate attorney regarding this money of hers, that's in your posession.

Answer 3

Depends. Frequently life insurance proceeds are protected from creditors; this will depend in large part as to how your parents' estate planning was structured.
In some states, Medicaid departments are trying to recover money or assets that were transferred or given to heirs, to recover nursing home costs paid by Medicaid. Be sure to discuss this with your attorney if Medicaid paid for any part of your mother's nursing home costs (also if there are any outstanding bills for her health care).
Be sure to include your own advisors in on these discussions; money left to you may affect your ex-wife, your children's financial aid for colleges, or for any outstanding bills, liabilities, or judgements that you have!! Also, save all your records and receipts & discuss with your advisors; it may be possible to deduct some funeral costs from tax, legal, or medical bills.
A lot of the outcome here will depend upon the types of planning your folks did pre-mortem; the rest will likely depend upon state regs in your area. Your attorney, accountant, or other advisor will have the best information on the rules in your state. (My sympathies, also - I recently lost a family member myself.)

Answer 4

Are you the executor? Best bet is to find an estate lawyer for advice. Technically, her estate is responsible for settling debts, etc.

Answer 5

The money from your father's insurance is part of your mother's estate and should be used to settle her debts before being passed to heirs.

Answer 6

The money she had IS her estate. You are responsible for paying her bills out of that amount.

Answer 7

the money would be part of her estate and available for her creditors,,,,but,,,,,,,check to make sure the ins. money was not in a trust of come kind,,,,,it might have a "spendthrift" provision and therefore not due the creditors....estate lawyer should answer this for you when he sees the documents