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rozinmi · Apr 19, 2007, 08:13 PM

My mother recently passed away and now the credit card companies are trying to collect approx $9,000 of debt from me. She lived alone and took care of her own finances. She was not frivolous or anything. The day she passed away she had about $450 in her checking account and approx $1,000 in worldly goods. She lived in a mobile home on our property, and the mobile home is considered too old for the parks in our area. I haven't been able to sell it. What am I responsible for. There was a small insurance policy, I am the sole beneficiary of, to pay her funeral bill. Yea, I have to kick in $3,000 to pay that.

Thanks for your help,
Roz in MI

Fr_Chuck · Apr 19, 2007, 09:33 PM

Ok, the estate needs to be settled, so you basically sell her worldly goods at a estate sale ( or cosign them to a auction to be sold) you set up the trailer to be sold at auction and apply her money.

** the life insurance if you were the beneficiary does not go into the estate.

You then pay her bills from that money. Funeral, last months electric, water bills, telephone bills and the such.

After that you send all of the debtos a copy of her death certificate and tell them there is no money left in her estate account. If they try to bill you personally you write them andinform them not to contact you further about it. You are not liable for any of your mothers debt unless you were on the account. Do not start making any payments to them, or agree to pay anything.

If they sue you, appear in court, show the judge the death certificate, and a final account of her estate showing all proceeds gone.

If the trailer does not sell you may be able to place a bid on it yourself as a starting or opening bid for any money due you for rent of the traileron your land ( check with an attorney locally on that)

Matt3046 · Apr 19, 2007, 09:52 PM

Yes my father died in October and he had allot more than that(50K). The lawyer says it's not my problem, but they still call all the time. Asking over and over the same question, "how are you going to pay this?" Well, I say I'm not. I can't. I was not listed on any of his stuff so I don't really feel guilty. And there was no insurance. But like Chuck said Don't let them tell you that you must pay it, if they try to tell you you are responsible tell them to send you a copy of the contract that you signed agreeing to pay. Consulting with a lawyer might not be a bad idea. Or there is this guy click here
clarkhoward.com: Save more, spend less and avoid ripoffs

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Sorry to hear about your loss.

rozinmi · Apr 20, 2007, 01:41 PM

Thank you so much, I had similar situation when my Mother in Law passed 11 years ago, I just wanted to be sure things were pretty much the same still. I appreciate all the advice. I am familiar with how to handle it.

Again my sincerest thank you,

Roz in MI

Emland · Apr 20, 2007, 01:46 PM

I worked for a credit card issuer and they will make you feel like you are responsible, but you aren't. If nothing is left of her estate after her final bills, too bad for them.

Tell them to stop calling you and send everything in writing to her executor (I'm guessing that is you.)

Sorry for your loss.

Fr_Chuck · Apr 20, 2007, 02:27 PM

Yes, the Clark Howard site is great, and he gives us a lot of great advice, and he lives what he believes and teaches. He is also just a great man in general also.

mdawn71 · Nov 16, 2012, 11:30 AM

Okay my mom has a 10,000 life insurance policy and I am the beneficiary she lives with me.. I take care of her. She's on a fixed income so she has a lot of credit card debit now with all of her health issues. She has nothing no estate nothing will go to probate. So what I want to know do I pay her credit card debit with the insurance money? Im not on any acct with her. Thanks so much for any help I may get..

AK lawyer · Nov 16, 2012, 11:37 AM

Mdawn71, as Fr_Chuck wrote earlier in this thread, you as beneficiary of the life insurance policy will not be obligated to pay her creditors anything. When the time comes, don't pay it. If and when the credit card company contacts you, tell them there are no assets to pay creditors.