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Are Heirs Responsible For Credit Card Debt?

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Do children of their deceased parent have to pay the credit card debts of their parent after the parent passes away?
Not all estate settlements are real clean. Sure, it's easy for three children to divide a pile of money that their father left behind, but some estate settlements get debt-messy.
Note here that every estate settlement is different, and different rules apply in different states. When you attempt to settle an estate with debt, you should hire an attorney in the deceased's state of domicile to help you sort through this.
In general, children are not personally responsible for the debts of their parents, unless, of course, they signed documentation obligating themselves for the debts.
Regarding a deceased's debts, secured debts are at the top of the priority chain. Deceased lenders often have a home with a mortgage, or a vehicle with a vehicle loan. As those assets get sold by the estate, those creditors get paid out of the proceeds of the sale. Credit card debt, however, is unsecured. Credit card companies are behind the mortgage lender and the vehicle loan lender.
The bottom line is that if your parent or other loved one died with credit card debt, you may benefit by opening a line of communication with the credit card company. In general, if the estate has assets, those assets must be used to pay debts of the deceased.
This post is for informational purposes only and does not provide legal advice. Please do not act or refrain from acting based on anything you read on this site. Using this site or communicating with Rabalais Estate Planning, LLC, through this site does not form an attorney/client relationship.
Paul Rabalais
Estate Planning Attorney
www.RabalaisEstatePlanning.com
Phone: (225) 329-2450

Опубликовано:

23 ноя 2019

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Комментарии : 327

@CoyoteSevenFL 3 года назад

Back in 2012 when my mother died, I sent copies of the death certificate to all her creditors. All but one just charged them off (I was not a co-signer on any). This one company was bound to get their money from SOMEBODY. After many phone calls where I kept telling them she was dead, I sent you the death certificate as proof and I owed you nothing, they decided to send a collector in person who demanded to speak to my mother. "No problem," I told the guy. I told him I'd go get her and they could have a nice long chat. I closed the door and when I returned I had my mother's ash urn in my hands, I told him, "OK, go ahead... but you may need to speak loudly as she's very hard of hearing." The guy's face went from 'I'm in control, you deadbeat' to 'WTF do I do now?' in an instant... never heard from them again after that.

@johnwhite2923 3 года назад

My mother died with $20,000 in credit card debt. Knew I was not personally responsible , but realized that the estate was & if we ignored them, the amount may have been enough for them to come after us.My sister & I were co executors. So after the house was sold, we paid them off. It was the right thing to do & what my mother would have wanted.

@Usarmymilitary75 Год назад

You legally didn’t owe them a dime

@johnscimeca899 8 месяцев назад

That was stopit

@johnwhite2923 8 месяцев назад

I did not pay it. The estate did. @@johnscimeca899

@wisenber Месяц назад

@@Usarmymilitary75 The estate did owe them a dime.

@ritatharp5238 3 года назад

Thank you for sharing. When my mother passed I was one of the lucky ones, no debit and all my brother's and sister's got shares of her assets. I cried when my brother, the executor wrote the check to me. My mother never wanted to outlive her money and be a burden to us financially, her fear the last two years of her life. Thank you mother!

@Simsane 4 месяца назад

Yes, that's my fear too. I do not want to leave my children with any debt. Well, I am also cleaning out closets, drawers, etc. so they won't be left with such a huge job. My husband of 40 years just passed a couple months ago and everything you must do is a very daunting task. I want to minimize what they will need to do as much as possible.

@leefury7 3 года назад

My father had almost 10 maxed out CC. After his passing, I use to get phone calls continually asking for me to begin to pay them off, even $5/mo. They tried to shame me into it. Two answered stopped their harassment. 1) I reminded them that they supplied their card to an elderly man with only SS as income and having gone through bankruptcy. 2) when they began making overtures about going after the estate, I mentioned that I had been making the house payments for the last 6 months. Then the calls stopped.

@MsCriticalthinker201 3 года назад

When my dad passed my mom contacted all of his creditors to request final statements, all were reasonable and sympathetic except Chase. They promptly sent a payment demand letter and were generally threatening and nasty. They were the very last account settled.

@michaelblazin4093 2 года назад

Did you have follow up conversations with Chase? Since the original note sounds like a computer generated letter, were there any communications with a human? The letter was likely very direct and reinforced the points that the debt existed and the creditor had notified you that it was aware of the debtor’s passing. It also made clear that the estate, if any, must resolve the debt, I.e., no forgiveness. Given the statements by Mr. Rabelais on other possibilities, Chase made clear that those options were off the table. When you deal with millions of people, sometimes you have to be direct and on point. Otherwise people may assume other possibilities, I.e., not paying, might be in play.

@TerryProthero Год назад

I recall one time coming into some money. I think it might have been a tax refund or something of that sort. I owed on a few different credit cards at the time. I called up Yonkers first. I had a card from when I worked there and had charged some items on it. But I hadn't even talked to them for a long time. Maybe a year or two. So, I suspected they weren't going to be very happy with me. I asked about the amount and any interest or penalties that had accrued. They said they hadn't added anything to the original amount. Which I think was a few hundred dollars. Something I would have no problem covering. I thanked them and told them that I would be at their store that day to settle my account. If a creditor gives you a difficult time, put them last on your list to get paid. And for those who want to work with you, deal with them first.

@MaileyMcAslan Год назад

Citibank ASSHOLES and you can’t fkn understand their accents

@johnscimeca899 8 месяцев назад

@@TerryProtheroI got a better idea I would not give them a dime

@TerryProthero 8 месяцев назад

@@johnscimeca899 I'm happy to reward good behavior. But I don't think the others did end getting anything from me. Although, I wasn't as rude to them as my brother. A snotty woman says, "you ever get sued before?!" His response was, "you ever suck c*ck before?" And his wife walks by just in time to hear his end of the conversation. She was laughing her ass off. And every so often you hear her repeating this to make fun of him.

@josephssocialmedia3162 3 года назад

Isn't the simple answer that kids are not responsible for their parent's debt, but their parent's estate is? So before heirs can expect to inherit the estate, creditors can go after the estate.

@billt8504 2 года назад

Yeah, I was also thinking this particular video, at eleven and half minutes long, was about ten minutes too long.

@deejayimm 3 года назад

If you get anything from your parents better than bad dreams and trust issues, call them right now and thank them before they die. You have no clue how lucky you are.

@TerryProthero Год назад

My mother was ill and knew she wouldn't be around much longer. I think she still had about $2,000 in credit card debt that she might not be able to pay off in time. So, I took care of it for her so that she could die without having that on her mind. My sister was in similar situation. She still owed a small amount on a vehicle that she wanted her grandson to have. So I helped out with that amount for similar reasons. That was one less burden she needed to concern herself with.

@johnscimeca899 8 месяцев назад

If you're dying why would you give two s**** about the credit card company

@TerryProthero 8 месяцев назад

@@johnscimeca899 Nobody gives two sh*ts about a credit card company. It's about them and their heirs. They don't want to leave debts that others might need to pay off or that could be held against their estate. This can complicate distribution of assets to heirs, etc. In the case of the vehicle, for instance, it would have been repossessed instead of going to my nephew. And then there is a question of pride. Not wanting to leave this world in debt. It gives a person piece of mind not having unfinished business. If I could help my sister and mother die in peace, and with some dignity, I was happy to do that. It was the very least I could do for them.

@Mighty-VizioN 2 месяца назад

What if their is credit card debt. Can the creditor put a lien on the house? My pops just passed, and as far as i know, he has no debt. He was very passionate about paying debt. But if he made a last minuit purchase, can the creditor put a lien pops home. He didn't have a will and I'm the only child. And i plan on paying off the home.

@TerryProthero 2 месяца назад

@@Mighty-VizioN Good question. From what I'm seeing so far, online, the answer is no. Only certain entities can do that. Mortgage companies, contractors who built the home, etc. Although, they might be able to go after other real estate and assets. Money in bank accounts etc. And, typically, creditors get first dibbs on the estate before anything is distributed to anyone else. But all of this requires a judgment from a court. Typically, small claims court for any amount under $15,000. My mother's debt was relatively small, so I felt it was easier just to pay it off. It's a little unclear if they would even be able to collect from you at all. But if it's a small amount, it might be worth the piece of mind to just pay it off. You will probably need to close out accounts while sorting out his affairs anyway. At that point, you could see what kind of balance there is, if any.

@lashtengiala5857 3 года назад

I’ve worked for a major tax company for MANY years and we’ve had to submit a copy of the deceased clients very LAST tax return & death certificate as proof of “No obligation” on the estate trustees part to show that the debt-e was financially unable to settle said debts to the debtor upon death...(And the kids STILL get the 💰 😉👍)

@mattanderson861 3 года назад

Something this attorney didn’t mention (surprisingly) is any current, outstanding personal income taxes owed to State or Federal (i.e. IRS) government take priority over any other debt. They’ve gotta looooong memory and are short on sense of humor. The IRS isn’t much of a fan on negotiating either. They want it, all of it.

@DogRedful 3 года назад

On a more positive side...go to Treasury Hunt and see if the deceased left any uncashed/matured savings bonds.

@mattanderson861 3 года назад

@@DogRedful You’re correct, Eric. My Dad passed back in 2007. Ten years later we discovered the State had $3-4,000 in our Dad’s name. Split it with my Sister. Paid a monthly mortgage payment. Thanks, Pop😉

@TerryProthero Год назад

Student loans are as bad as the IRS. But in my experience, how friendly the IRS is depends heavily on how much you owe. I recall owing about $200. I called them up, and they told me that whatever I do file my taxes on time. And, of course, don't lie about what I owe. Those are the two things that will get you in big trouble. I was completely broke, so they gave me extra time to come up with the money. Months later, I get a very threatening letter from them. They had charged me about $2 in interest and penalties and they made it clear to me that they could pursue options to collect the debt in a few months. They didn't say that they were going to. Just that they had that option. I laughed at that and paid them off before their time limit. I think that happened another year with similar results. They were the nicest people in the world to me and seemed quite willing to offer payment arrangements, etc. I was a little shocked that would be the IRS's response. They probably get a lot uglier with people who owe large amounts of money. But they have bigger fish to fry than some joker like me who owes them a couple of hundred dollars. You are right about the IRS wanting all of their money. But they can be pretty flexible in terms of payment options, etc.

@K1OIK Год назад

gotta?

@elliewilson8863 3 года назад

When my husband died he had several credits cards but only on his name . I was told to sent them his death certificate. They cancelled all . I was lucky . He also had an account and a credit with Chase . I went to Chase and they were very kind and the manager told me the debt was canceled and they gave me a check for the remaining money in his account .

@wehttamgtrekce 2 месяца назад

Chase cut you a check for the remaining money? Do you mean that the debt was not really canceled, instead the bank withdrew money from his account to pay off the debt, and then cut you a check for what was left (the remaining money)?

@vincentlee4799 3 года назад

Yes I had credit card debt when parents passed, I was the executor and did get some reduction sometimes significant from some of the credit card companies when I contacted them. I had to provide the proof, Death Certificate. But, don’t forget what ever is forgiven by credit card company you have to show when you file you tax return on the estate.

@robinkuruda5249 3 года назад

GOOD POINT!!!

@jordyjustine 2 года назад

Is this the case even when a debt is settled as opposed to having some of it be "forgiven"?

@Garth2011 3 года назад

In CA, we don't pay credit cards off when the card holder passes on. All they get is a death certificate if they ask for one. Those balances are unsecured so they are out of luck and that could be why they mostly charge high interest rates and other high fee's. I would imagine that a probate court would likely instruct the heirs to pay credit card balances however, it is usually a practice that they are notified by the court/judge and given a period of time to file a claim and if not heard from by that time period, they are not paid. The last debt balance to pay off is a credit card... If anyone owns real estate or other "formal" titled property it is best to have a trust in most states. Some states do not require this but most do. GET A TRUST LAZY/CHEAP PARENTS.

@charlesf.butler9679 3 года назад

If they didn't sign a contract tell the companies tough luck

@lindam1227 3 года назад

When my husband died he had CC debt that I was not signed on. My attorney filed all the appropriate documents and no one filed a claim. Even if they had he said I would not have to pay them. They did charge them off but then sent a C1099 and I had to file them on his final tax return.

@mauricecohen3830 3 года назад

There is not much credit card companies can do. Most will accept pennies on the dollar. It funny that several people mention Chase as being unreasonable and that has been my experience too.

@Gemmahaven 3 года назад

Credit card debt usually are written off if goes 180 days delinquent.

@earlscheib7754 3 года назад

Chase and all the cards they acquired like Sears, Shell they collect well outside of statue of limitations the other credit card company that is bad is Discover

@earlscheib7754 3 года назад

@@Gemmahaven nope charge off and written off are two different things the LAW is 6 years from your LAST PAYMENT so if you go 5 years 11 months and the creditor gets a payment of anything then the 6 years start all over. They can also file suit or compulsory arbitration 1 day shy of 6 years. Now some companies simply sue on 10-15 year old debt and hope the consumer doesn't understand the fdcpa and contract law

@redconvoy 3 года назад

I remember Mazda called me to get a car payment when there was a clause in the contract that they take the car back if he died. My second cousin was married to him and I yelled at her for sending them to me. I told her she was responsible since she inherited everything (Florida laws suck-no will). I was not going to pay for a car I didn't have and I even told Mazda that. I told them he had a wife. Go bother her.

@bun04y 3 года назад

I'm estranged from my father, but I'm the oldest child. I don't know if he has a will or not. I would hope that he has a will and made my brother his executor, but knowing him I doubt it. I am so glad to hear that we (there are 4 kids) won't get stuck with his bills. I just checked google maps and his house is still surrounded by his collection. My brother started "singing" the theme to "Sanford & Son" when he went to visit him last. My prayer is that when we have to clear the estate (such that it is) we can just sell the majority of the mess. I fear that we may have a very large landfill disposal fee.

@carolynm4962 2 месяца назад

Try selling the vehicles for scrap

@spencerbergquist781 3 года назад

You do a very good job sir. Second time I watched one of your lessons.

@karlrogers7317 3 года назад

My Mom passed away unexpectedly and she had several credit cards with balances. I sent them a letter with a certified copy of the death certificates. Sadly, there was no estate, small life insurance policies, and little money in the bank. I didn’t pay any of the unsecured debt as I had no responsibility in accumulating it. That was just over two years ago and the letters have just stopped.

@johnscimeca899 8 месяцев назад

I would have charged more on the credit cards and what about a TV and other stuff when my mother passes away that's what I'm going to do with her credit card

@he-manmasteroftheuniverse2501 3 года назад

The only people responsible for debts are those who took them out. There is no if and or but about it.

@billman6364 3 года назад

thank you i dont get all this bs here

@Mamabear1138 3 года назад

Other than medicaid for end of life care.

@zed4229 2 года назад

@@Mamabear1138 Nope Medicaid can only go after the estate not the children.

@warlockcommandcenter 3 года назад

5-6 years ago I was trustee for my mothers estate she before and after she was in long term care and my sister was medical power of attorney she would send me bill but often there was no documentation that the Medicare/ and or insurance had processed the bill I would normally call her and the the billers to check they would beat me up about HIPA I’d just state that if I can’t get documents to show Insurance had paid their share I couldn’t pay the bill for the charges most would comply but 20% wouldn’t and then they would give my sister fits because I couldn’t allow th doctors to bill me for unclaimed charges.

@JAG312 3 года назад

When my mother passed away, she had a couple thousand in credit card debt. Also, my mother had my name on her checking account. I just wrote a check for the total amount on my mother's checking account. Basically, my cost was the stamp. Then I called the credit card company to close the account. All quick and easy.

@billman6364 3 года назад

that was your money it cost you 2000 and a stamp!

@darrylr.4983 3 года назад

My wife's ex-husband died with a substantial negative net worth, especially on his house. The bank holding the mortgage tried to intimidate his 3 daughters into paying but they knew better. The girls did get his life insurance though, I was concerned they'd put a claim on that. This was in North Carolina.

@lizg1976 Год назад

My dad died almost two yeqrs ago. As my Moms POA I took care of his estate as she is bedridden. I called the two credit card companies and sent them death certificates. Mom was not a primary on wither of the accounts. Two weeks ago we got a letter from DCM, they prey on people like my Mom. I will fight this every step of the way for her. He didnt even have a balance because I paid it

@inalienablerights 3 года назад

You are never responsible for any debt you didn't sign for to begin with.

@timcote8281 3 года назад

Many years ago, I worked at Chase for 10 years. I recommend to obtain the address to send the death certificate and cease and desist letter if you feel the phone system will not cooperate. Death is a precalculated loss that Chase planned for. Only funeral expenses can be placed on the card after the date of death. Once the death is verified with social security, funeral home, or a death certificate is placed on the account than it would be charged off and closed out. It is not necessary to pay unsecured debts like credit cards in any state.

@monstermind66 3 года назад

How do you get a cease and desist letter? and if you charge the funeral cost after are you responsible for that or that can go on the card too before its closed out so then your not paying for that after that part too?

@catherine7147 3 года назад

Yes, in Wisconsin. Had to pay off Chase after my husband died. Not easy to deal with.

@mikkihesson3509 3 года назад

thats different than an heir. spousal debt can be transferred at death sometimes. sorry you had to deal with that.

@elinoreberkley1643 2 года назад

Depends on the debt but I found they can attach the debt to the house. The interest goes up and up if you don't pay.

@ericolsen2141 3 года назад

I think things could be made a lot simpler than described here. If parents add their children's names to a home with rights of survivorship and on a bank account jointly or car title jointly those assets automatically transfer to the joint owner without probate. Credit card companies won't do jack.

@johnstack5008 3 месяца назад

@@carleysmith1523 I would consult an attorney on this but keep in mind that anybody can sue anybody even if the case is flimsy.

@stgermain1074 3 года назад

I don't really understand all these people who think that the attempt to collect a legitimate debt from an estate is somehow evil. Of course debts should be paid before heirs take any money in their grubby hands. If you loaned your friend a bunch of money and had a written agreement that he'd pay it back, wouldn't you want your money before his kids go out an buy new cars? I have no kids. I also have no debt. (Funny how that happens) I'm religious about paying my bills. I'd certainly rather any outstanding bills be paid before my nieces and nephews get their cut. When I buy buy something on credit, I don't feel that item is fully mine until the debt is paid. Now, if I died intestate with a bunch of debt and no assets, I don't believe my siblings or parents (now deceased) should have to pay out of pocket to clear my name. But my estate should first clear those obligations before any partying with the left over assets begins.

@marywiggins7411 3 года назад

Who cares about 'your name' if you are freaking dead?

@tammymoberg6122 3 года назад

Moms cc. took her points/miles and paid her small balance ....thanks Visa

@billganahl7151 3 года назад

The short answer is no. Check your state and if you signed anything.

@elenawilliams9746 3 года назад

Thank you so much! That was extremely informative!

@user-np3et5rk6m Месяц назад

GET A LAWYER TO HANDLE THE ESTATE!! I've been the executor of 3 different family members estates. What i paid the lawyer was well worth it in terms of time and money saved. Also, in the case of multiple heirs, the lawyer becomes the bad guy, not you.

@earlsmalls 5 месяцев назад

I do not agree with what you said about the car note. If there is a car note the heirs cannot sell the car because it is owned by the bank. I believe they just have to 10:03 10:03 simply give the bank the car

@eddiegardner8232 3 года назад

All he is saying is that the deceased’s estate is obligated for his debt, but not his heirs. If his debt exceeds his assets, his heirs get nothing. If his assets exceed the debt, then the heirs split the estate, minus the debt amount, as proportioned by state law or his will, if any.

@bettywith2girls 3 года назад

I heard him also say that credit card debt is considered "unsecured debt" and that most (but not all) credit card companies just forgive the debt when they are sent a certified death certificate (and some just by telling them the person is dead). So, he is saying that legally it is debt but first see if the credit card company will forgive and write it off before thinking you have to pay it from the estate, no matter if the assets exceed the estate debt.

@jamesodell3064 2 года назад

One area you might talk about is parents have a time share that the kids do not want. What is the best way for the estate to handle that problem.

@dannyscobee6530 3 года назад

When my single older brother passed, I sent a certified copy of his death certificate to his creditors & never heard another word from them. This did not include his mortgage that he was very upside down on. The property just went back to the mortgage holder.

@mellisa9459 3 года назад

I keep the house and sent death certificates to everyone and still had to refinance the house to pay her bills.

@brendawallgren8354 2 года назад

Could you possibly make more videos talking about the rights/responsibilities of the spouse when their husband/wife passes away with or without a will?

@barrymacintosh5917 3 года назад

When my wife died from breast cancer she had a card in her name only to build credit the credit co. Took off I think 5000 dollars then the next year the feds said that was earned income and charged me 1000 dollars

@normahiggs9288 3 года назад

Are you saying they reduced the amount owing by $5,000?

@Katy32344 3 года назад

Yes, that's the IRS rule.

@jerryc3050 3 года назад

Is this what you meant to type? "When my wife died from breast cancer she had a card in her name only to build credit. [period] The [capitalize 'the'] credit co. took [uncapitalize 'took' ] off I think 5000 dollars. [period] Then [capitalize 'then'] the next year the feds said that was earned income and charged me 1000 dollars." [period] So now your sentence reads: "When my wife died from breast cancer she had a card in her name only to build credit. The credit co. took off I think 5000 dollars. Then the next year the feds said that was earned income and charged me 1000 dollars." If this is what you meant, that really sucks!

@cmritchie04 3 года назад

@8:00 I am almost certain that the credit card companies have purchased an insurance policy that we as the consumer can't see just the like banks had AIG who insured all of the houses prior to the housing crisis and have meet the terms for a claim and disbursement. Followed by T.A.R.P. AIG was underwritten by numerous cities police, fire, ems and teachers retirement plans.

@Garth2011 3 года назад

Yesiree and AIG got the shaft but in an unscrupulous way and by their pals in financial markets. They got totally fooled and then the same idiots who arranged all of that managed the TARP recovery and got rich overnight escaping much needed prison time. Barney Frank, Hank Paulson and a lot of others were part of the scheme.

@ADobbin1 3 года назад

If my signature isn't on it I'm not paying for it. Its that simple.

@cooljets 3 месяца назад

My parents sold a home to a couple, one of which died soon after. They had taken-out an insurance policy on the morgage that protected the survivor in case one of them died, so the survivor ended-up owning the home free and clear. There was some suspicion that they both knew of the impending death, but it was never proven.

@MENSA.lady2 9 месяцев назад

In the UK the answer is NO. The only excption would be if the card was in joint names, then the survivor can be held liable

@grantboucher9342 3 года назад

i was involved with mother in law passed we sent death certificate copy to unsecured debt holders without our names or addresses. what they did i dont care

@chuckmiller2951 3 года назад

I am in the process of settling an estate in Florida and successfully negotiated debt reduction on all the credit card debt even though there was plenty of liquidity in the intestate estate. I would always negotiate with unsecured creditors since they are willing to write off part or all of the debt.

@jordyjustine 2 года назад

I wonder if this is the case when the mortgage on the estate and the credit card that was taken out are through the same bank? Also, what happens when said estate with plenty of equity, has already been transferred to the heirs by transfer on death deed?

@chuckmiller2951 2 года назад

@@jordyjustine This is not legal advice but it is my experience under Florida probate law. If the estate was probated then the Personal Representative or attorney must post notice in a newspaper of record to notify the creditors. The creditors would then essentially bill the estate within a statutory time limit and debts not billed by that time are not collectable. The mortgage is different in that it follows the property and must be paid eventually. Everything is negotiable and the PR has a fiduciary duty for the estate. If the real estate was passed with a death deed to the heirs rather than the estate the heirs would be responsible for the mortgage and real estate taxes going forward unless the mortgage has a due on death clause as reverse mortgages do and maybe the case for other types of home equity lines of credit. I would think if the estate were properly handled there should be no concern on the part of the hears about any personal debt.

@jordyjustine 2 года назад

@@chuckmiller2951 Alright. It is my understanding that all properties go through some form of probate but since we did a transfer the judge only needed to review and stamp the document. The property was properly transfered, is in my name and i pay the mortgage and credit card bill every month. As i said there is plenty of equity in the property so i wonder if both debts, being that they are held by the same bank, will hold me liable for the credit card. The property is ours and i have taken care of all of their other debts like hospital bills and car loans but the credit card in my parents' names remains. At the very least i will attempt to have the interest accrued since their passing taken off. The bank knows that my parents are no longer living but hey, i keep making the payments so why would they recommend anything to me. They probably expect a lengthy probate process but unbeknownst to them that has already concluded. Thanks for any and all food for thought!

@chuckmiller2951 2 года назад

@@jordyjustine Since you acknowledged the credit card get and have been paying on credit card you are liable. That’s not normally how it’s done though And it doesn’t matter that bank that holds the mortgage also issued the credit card. My unsolicited advice here is to negotiate a reduced payoff on any credit card. In my experience some credit card companies completely forget the debt and in other cases I was able to negotiate a substantial reduction.

@jordyjustine 2 года назад

@@chuckmiller2951 Yeah its kinda a strange scenario because the cc just came out automatically from their checking account, same with the mortgage. So i just deposit money into that account. The cc was not transferred but the c account was. Its confusing and its not like i can just ask one of my elders if you know what i mean. I really appreciate you bouncing ideas around with me so thank you! I will try to negotiate something. Ps I am not taking your opinions as legal advice.

@bcase5328 3 года назад

You forgot to say taxes. Tax including property taxes are a first inline debt, well in front of credit cards.

@babbetteduboise4284 3 года назад

I solved the issue by managing my parents finances, closing the credit card, and paying everything by check for the last 6 years.

@deborahbergren9849 3 года назад

Mother-in-law passed away on December 26, 2019. Because she was on Medicaid, at the beginning of each month all of her SS went to pay her nursing home bill plus all but $60 of her pension. After she passed SS wanted the money back because the law says that even if a person passes away on the last day of the month the money must be returned - but it can be appealed. An appeal was sent immediately but that is when the pandemic hit. Now, a year later, we’ve received a notice that the money needs to be repaid because they claim they didn’t receive the appeal within 60 days. We no longer have any of her records since it’s been so long and no proof that the appeal was sent in a timely manner. My question is, do we have anything to do with this debt since it wasn’t ours in the first place? None of her SS money came to us as checks were written out of her bank account straight to the care facility. They have not sent a bill yet, simply a notification.

@michaelrudolph7003 2 года назад

Sorry I can't help with your question, but what you describe is how the Medicaid program works. They cover a lot of the bills up front and then recoup whatever costs they paid out from the estate on death. If you can't afford to pay it during your life the program is there to help, but there are still costs which need to be paid back. Most of the time they don't get anything close to what was paid on the beneficiary's behalf. I think there is every reason to be grateful for the help.

@ellenkeach 3 года назад

their are always life insurance for homes and vehicles if bought and finance thru the bank. If the payee dies it is covered by life insurance pay off the mortgage and vehicle.

@wallypalmer4704 3 года назад

Those things are optional. I have neither for my home nor my car. I worked in the car business years ago, and we were asked to push these policies because they were generally all profit for the dealership (most people don't die or become incapacitated during the life of a car loan, so the insurance is never used). In the car business we referred to these policies as "choke or croak" insurance. Anyway, my point is that vehicles and homes do not always have such policies, as most people decline them (I have no wife or kids, so if I die, I don't care what happens to my home or my car). Homeowners insurance doesn't pay off your mortgage in the event that you die. Rather, homeowners insurance covers catastrophic damage to a home, slip and fall accidents on your property, etc. Car insurance works pretty much the same way. If you die, and you don't have "choke or croak" insurance, the debts are not paid off.

@laurieinmn6468 Год назад

When I told a creditor of the person's passing, the company went directly to debt collection. The lawyer said to ignore the letters and settle later when I was willing to make the monthly payments and be refunded by the estate.

@Robin-oo5il 3 года назад

They go after the estate. but the laws are different in each state, maybe in one state their out of luck, another they get paid.

@vanderm49 3 года назад

Thanks for the information. How is governmental debt handled? (i.e. SBA loans, IRS offer-in-compromise payments, student loans)

@billt8504 2 года назад

HA! How is gov't debt handled ? How do you think: gov't is at the front of the line, ahead of mortgages and car loans, ahead of secured debt. The IRS will hunt you down. Student loans? They'll come after the estate, too.

@sdmcdaniel2255 3 года назад

I have a question. I'm hoping I can get a general answer. First, I live in North Carolina. My step-dad died just after Christmas 2020, my mom died Feb 11th of this year. Thankfully, all the credit cards are mostly paid off, the cars are paid off, all that really remains is is the mortgage on the house, and the cell phone bill which includes two cell phones and a tablet. The 4 primary heirs (myself, my brother, our 2 stepsisters) know that the house has to be sold. My brother has an option to buy at 3/4 value, because he also lives in the house and was the primary caregiver to our parents. He's the only one with an option to buy, the rest of us understand, and are okay with it. House and land value is approximately 300k, with 105k still left on it. 3/4 value of the house is more than my brother is approved for on a loan, so he can't afford the house. Here is my actual question. I've always understood that when you pay off a mortgage early, especially if you make a bulk payment, all you have to pay off is the principle, you aren't required to pay off the interest on the loan, because you aren't continuing to make payments on it. Is it different if you are paying off the mortgage from the sale of the house? Is that something we need to make the executor aware of (the executor is a relative not listed as an heir)?

@ShowdogTiger 3 года назад

You will need to payoff the interest that exists at the time. Fair warning: We just did this and had to jump through a few hoops to prove where the lump sum came from. Took three months with the back and fourth so they still got three months of interest out of us. Blood sucking bastards.

@jerryc3050 3 года назад

@@ShowdogTiger "Blood sucking bastards" lol

@Garth2011 3 года назад

Nothing changes about the interest and what is owed because of a death and transfer to another person. All you owe is the principal balance at the time of the payoff. Future interest doesn't apply because the bank is not lending it past the payoff date. All interest stops on the day you pay off the loan but all interest owed up to the payoff is applied to the pay off balance. Usually you can ask for a 10 day payoff or if the bank won't do 10 days they will give a 30 day payoff and if you pay them off on day 15, they will refund the other 15 days interest after paying off the loan. If your other family members want to buy the house, they could if all are ok with that however, if you sell, question is will you pay the caregiver a high split such as 25% for doing all of the caregiving?

@sdmcdaniel2255 3 года назад

@@Garth2011 According to the will, my brother is the only one with the option to buy. Ours was a blended family, and there are 4 siblings. 2 are estranged (had been for decades), and our parents had planned to disinherit them of everything but those items in the house that came from their grandmother. My brother and I were both told this had been done, but the only will on file, or that we can find, includes them as principle heirs. As we pack things up, we are looking for updated wills, because we aren't sure if the executor will look for anything beyond what was filed. If it were just my brother and I, this would be an easy estate to deal with. But the executor has to satisfy the other 2, and that has made it a nightmare. That and the fact that there are a few family members from our step dad's side of the family that are trying to make demands, they aren't in the will, so have no standing, but our 2 sisters are trying to make demands on their behalf, for items our parents no longer owned, and are threatening a lawsuit if they aren't produced. As I said, it's a nightmare.

@eddiemcfadden4386 3 года назад

Sometimes it's credit insurance on the cards.

@andrewjackson9697 3 года назад

Be careful that your lawyer does not put you in situation to pay off something you were not obligated to pay off. You should learn what the law says before you become involved in any inheritance dealings with the court.

@Garth2011 3 года назад

Lots of family law, probate, estate etc. lawyers are not qualified to do the legal work. There are many of them who fail to do a good job and cause undue debt to be paid from an estate. Many do not even know how to perform a probate correctly so it is very important that you find lawyers who are smart, not just licensed.

@Osckarre 2 месяца назад

Everyone gets to 1:50 seconds and continues on surfing youtube. :)

@stevenwalker4923 2 месяца назад

Any estate is responsible. Remaining relatives aren't unless they are handling the estate. The assets of the state will be determined by a judge.

@robward155 3 месяца назад

Please speak to the tax implications when debts are forgiven. If your parents held a student loan with a private bank and the bank forgave the loan, in this case to the tune of 32k. Will the bank in turn issue a 1099-C next year whereby the heirs would have to include their equal portion of the forgiven debt as ordinary income on their next year’s income taxes? Would this also apply to state taxes as well ?

@urch4ever 3 года назад

With a car loan. Sometimes there is a pay off benefit if the person dies. It use to be available with your car insurance as well. If it's a a long time policy eliminate that possibility.

@Number6_ 2 месяца назад

As unsercured debt no one is responsible for it. If asked tell them to go away. Only debt that has been originally secured by property is payable. Banks and creditors will try this con all the time.

@doihavetohaveachannel8289 3 года назад

What about the moral obligation to pay the debts first, then the rest is for the heirs. Forget what you can get away with. Gees. It is different if there is a negative amount in the estate.

@bettietuck8770 Год назад

Just finding you.......thank you so much for your knowledge of the law and I see your passion....I wish you was in Virginia. I have learned so much from you.

@efandmk3382 3 года назад

They are if the credit card companies send reps to the probate hearing. Why wouldn't they be? That's what the probate proceeding is for. Heirs are not personally responsible, but it is paid out of the estate before the heirs are paid.

@Garth2011 3 года назад

Unsecured debt are last to get anything and in most cases, nothing at all because of the type of debt they provide. Unsecured means all they have for collateral is a living persons credit score.

@warrentrout 3 года назад

Actually not true! In some states children are responsible for their parents end of life care expenses. AARP confirms. Check with your particular state.

@Garth2011 3 года назад

Maybe so, AARP is no authority though. Don't believe they are the bible about old age affairs. They have been known to be adverse to the client

@Satchmoeddie 3 года назад

There can also be workman's or mechanic's liens taken against the home too.

@alfr1 Год назад

My Pop had a nearby HOA file a Lien on his house for non-payment of dues, AFTER he died, and he was not even in that HOA. The Lawyer scared them so bad they sent a phony apology citing their record-keeping as being a Mistake. Didn't have to sue them.

@jj4321 3 года назад

Medical bills?

@maryg3143 3 года назад

Some states have laws that if a parent is in a skilled nursing facility the children can be held responsible for any of the unpaid bill. (If applicable the children can prove their inability to pay and may them not have to pay.)

@eigobike3929 3 года назад

The executor is responsible, not a child or children. The heirs get net of creditor claims.

@eigobike3929 3 года назад

@@remingtonsmooth1417 of course, that is the definition of an executor. He administers an estate as an agent , he is not a principal in the probate.

@Nelvin78 3 года назад

The credit company can forgive the debt, and write it off on their books as a loss. It helps them on their taxes

@jamesodell3064 3 года назад

It does not help as much as people think. Corp. tax rate is 22% so they save $ .22 on each dollar and lose $ .78 in cash.

@frankschrock4484 3 года назад

I know plenty of people that died with debt, and no one ever bothered their kids. No one ever asked me if I had children when applying for a loan or credit card.

@olivertaylor4779 3 года назад

You did not mention inheritance tax or death duties, they are always paid first before anyone gets a penny, the government always takes their cut first.

@brendabernstein286 3 года назад

My question is... what about death of a spouse? My husband died at home from an accident. When I contacted his student loan holder, they forgave his student loan, no questions or proof needed. When filing income tax the next year, irs required I claim that as earned income and pay taxes on it. Is this legal and, How can "fix" it if not?

@carriebishop8838 3 года назад

You need to check with a tax advisor in your state. The year after he dies you file joint as a widow, which gives you benefits. The tax advisor will let you know what income he had that needs to be included on your taxes.

@rongosciniak264 3 года назад

Fourtantley, my mom has no assets. And no credit cards... I will be waiting from some fake credit card company to demand money...

@bernarda658 3 года назад

Before I listen to all of it, I my is the estate is responsible for the debt first. If there isn't enough money and all the assets including the house don't cover the debt, then the debt is paid in full.

@lisamillerbuchert9447 3 года назад

In PA if your car isn’t paid off the heirs can pay off the debt and it’s theirs and if the heirs don’t want it the dealer will take the car back and that’s the end of it but credit card debt whoever is suppose to inherit whatever they are the ones responsible to pay off debt.

@Garth2011 3 года назад

That can happen most likely in any state, as long as the bank is paid each month or the loan is paid off, they will send the title to the deceased or otherwise if the paperwork requires it. Same goes with a house loan, as long as the payment is made, doesn't matter by who, the bank doesn't care.

@Garrrrrishere Год назад

My mom bought a car and 6 months later passed away. She owes $21500 on it the bank want it back and will charge her estate after the auction sells it for much less very likely. Does her estate have to pay off the difference?

@wolphin732 3 года назад

Yup, if you co-sign anythign, you are liable for all the debt if there is any issues!

@jeffdavis6808 3 года назад

Not really

@sherrellbennett1333 3 года назад

My late husband and I were separated for 2 years when he died. I was one day away from finalizing divorce, so legally still married. He had 2 credit cards and a car payment. I contacted them all and the credit cards wrote it off, even though I was an "Authorized User", and I just had the repo man come and get the car. This was in Oregon.

@heatherbeane3234 3 года назад

Authorized user of a credit card is not legally responsible for the debt even if the authorized user was the only one to charge on the account. Morally speaking yes I do feel they are responsible for the charges exception is in the death of a loved one.

@Garth2011 3 года назад

@@heatherbeane3234 F the morals these days. No one in the corporate world recognizes them nor do they exercise those practices.

@terrytully1051 3 года назад

Heather, God still and always will "recognize morals". Reading all these comments confirms that money truly is the root of all evil.

@terrytully1051 3 года назад

Oh, I should have said Garth, not Heather. Sorry!

@empilweni6206 Год назад

When my husband late I went to the bank and let them know that my husband is late after that I received an email from other lawyers and I forwarded the death certificate and my lawyer inform me that the bank file credit card debt to my husband's estate.Then I went to the bank query that and the Teller said under my husband's name only wrote deceased on the computer my lawyer said my husband didn't sign life insurance policy with the bank now she's waiting for me as soon as I sell movable assets to cover that credit card then she'll wind up I don't even know what's that please help and our marriage was out of community of property

@jimclark6256 6 месяцев назад

Too much useless info, just make your point.

@mellisa9459 3 года назад

Oh no, my sisters put it in my moms will, that I had to pay all her debts, which started me out in debts

@Garth2011 3 года назад

All wills will say that B.S. but unsecured debts are not necessarily owed anything once the debiter passes.

@jaimee8355 3 года назад

The answer is "no"

@jonbeeler402 3 года назад

Anyone know what happens when you find out your parent didn’t file taxes in 2019 and 2020 and passed away in 2020.

@jodylarson4697 3 года назад

A friend's brother passed away and he hadn't filed taxes for a few years. She had to file his overdue tax returns and get him up to date before she could close out his estate. The last return was the "decedent" return because it was for the year in which he died. If you're unsure, consult a tax professional or a company like H&R Block.

@robertrichiez5698 9 месяцев назад

Can an Irrevocable trust be sued for credit card debt ?

@vlp5650 2 года назад

What if the administrator has to pay out of pocket while handling the estate. For instance, pays for funeral expenses or travel expenses taking care of an estate in another state.

@patpanter2223 3 года назад

No you are wrong my parents were responsable for my debt nor am I responsible the irs tried that but was unable to collect any money owed irs they tried by intimidation if they can they will that's common sense

@ladydragon7777 3 года назад

When a person dies their debts should be null and void.

@briangasser973 3 года назад

Why if the deceased has assets to cover that debt? If money was borrowed in good faith, it should be repaid from the estate before excess funds are distributed to beneficiaries.

@lizhaydon2250 3 года назад

Good advice. Thank you

@maryektarian1833 4 года назад

what if there is a trust

@peterl.104 3 года назад

Mary Ektarian General rule is that the estate pays it off before the inheritance goes to the heirs, so the trustee should be taking care of it.

@sct4040 4 года назад

Never sign anything

@FMartini1960 Год назад

If there us a trust going to children will the trust be responsible ?

@richricogranada9647 2 года назад

In community property states are widows responsible for cc debts? There is no estate left.

@bobdonovan4505 3 года назад

good job

@franklatham9403 2 года назад

What happens in the instance of debt and the heir receives life insurance? Is their obligation from the policy?

@K1OIK Год назад

On all of You Tube I never saw anyone who talked so much and said so little. How many times do you say again?

@MARKA-dy8sz 2 года назад

how will things really get handled specially with todays popularity of paperless statements. one could die and whoever is left handling anything will most likely not know email access and such to find out and track what credit cards a person have. will credit card companies send paper statements eventually after no payments or will everything snowball higher from an annual fee credit card to a massive debt?

@alfr1 Год назад

After someone passes away that you are handling the bills for, Get 6 or more copies of the Death Certificate. You might not need all 6, but you probably will.