My mother recently passed away and has a lot of credit card debt. The only real assets were stock and her house but she had a living trust that lists my sister and myself. I am not sure if the living trust protects the house from the debt that she owed. I am not sure what steps to take to protect my sister and myself. I think I was an authorized user on one of her credit cards but I have not used it. Any advice would be appreciated. I am worried sick:(

Likely they will be successful in obtaining a lien against her estate. To calculate what you get from her estate you must take her total assets minus total debts. There is no "protection" for you and your sister against her debts because you are only entitled to what is left over after her debts are satisfied. The only time credit card companies can be forced to take the brunt of the deceased's debt, is when the estate is non-existent (no value).

From a relevant article:
"The debt is passed to the deceased person's estate and the estate is responsible for paying the debt. If there is not enough money to go around for all of the debts, then the creditor's are notified that the estate is insolvent and they have to write it off. They may still try to collect from a spouse or from the executor of the estate - telling lies that the individual is responsible when they're not. Keep in mind that this type of behavior is their charming way of trying to collect." << quoted from here (click).

From another site, I gather that if there is a joint owner to the home, that owner's half of the home is untouchable. Additionally, the cc company would not likely go after the home in that instance because of their inability to sell a 50% stake in a home. (click here for source)

I believe if the estate goes through probate court, creditors have a set time limit that they must respond and file against the estate.

I know this was the case in the recent death of my friend's father. However, I don't know if it is this way everywhere or in everycase.



You really need to speak with a probate lawyer.