Legal question regarding death and debt.?

Question

My mother is passing. She has significant debt, in the tens of thousands. I have never co-signed any of her financial information or been on her accounts. Nor am I her legal representative (only health care power of attorney). Therefore, I do not open her mail that she receives, as I don't feel it is in my power to do so.

She lost her home, her car, and has many creditors. I am an only child and am on her life insurance with only one other person, whom is listed in order to repay some money. I have done my best financially to avoid such situations and have supported my family. We are looking to buying our first-home and don't want her credit to impact ours.

My questions are: when she passes, how do I let her creditors know that she cannot repay them without putting myself in a vulnerable position, since I should not and cannot be liable for her debt. Also, does her life insurance need to go to her debtors prior to going to me? She has no will or belongings, so I didn't know if I was obligated to pay her debtors with the remainder of her life insurance. Any help would be greatly appreciated. This is a tough time in many respects.

Answer 1

I am so sorry about this sad and difficult time you are having. May God bless your mom and your family.

I am not an attorney. I worked in a law office that did a lot of wills & probate work. Your best option is to contact the attorney's office where she has her will, alert them of the situation, and ask all these questions.

If your mom does not have a will but only power of attorney, contact a law office and they can guide you through the details.

When one dies without a will (called 'intestate'), it takes longer to finish up everything than if he/she had a will. The attorney can tell you what to expect. Do not be afraid to ask because the more information the better.

I wish you and your mom the best.  

Answer 2

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Answer 3

Life insurance is a separate issue from estate assets.  When she passes have copies of her death certificate made and send one to each of her debtors.  Do not be intimidated into thinking that you owe her debts, you do not.  It sounds like she has already lost everything that is secured so there is nothing in the estate.  Your credit will in no way be affected by hers.  Good Luck.

Answer 4

Without a will you will be waiting for the estate to be handled by the probate court and can take quite a while. I would suggest speaking to an attorney (although I don't like them) very soon. They would be qualified to answer your questions.  

Answer 5

Debt does not get passed on.  Although the debt will go against whatever estate she does have.