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Maxboots · Jun 25, 2009, 06:00 PM

My father just died and has about $16K in credit card debt. He has his name alone in on the card. I called the credit card company and they asked for a death certificate and I asked them is my mom responsible for his debt - they said no it is only in his name. They said they may pursue his "estate".
We may get some life insurance money but have no idea how much. This will help us pay for the funeral. Can they go after my mother's home - it is not paid in full yet. Can they take te life insurance away from us? They still owe about $113K and she wants to stay in it. Can they take away his pension she is getting from him or his Social security she is getting. We have a car that is not workable but that is all we have - can't say there is anything that would be considered an "estate".
Maybe I am unsue of what an estate is for sure.
I just don't want my mom to loose here home over this.
Thanks

ScottGem · Jun 25, 2009, 06:05 PM

His estate will owe the money. Insurance benefits pass to the beneficiary outside the estate. Depending on how the house is titled, that also may pass outside the esate.

If you can prove to the credit card companys that there are no assets n the estate, they may just drop it.

Maxboots · Jun 25, 2009, 06:09 PM

The title of the house is in my dad's name but my mom signed the papers too - but for some crazy reason her name is not on it and I am working on that - I was there when they refinanced it for a lower rate and don't understand why her name is not on the title.
Could that be a problem - could my mom loose the house because of this?

ScottGem · Jun 25, 2009, 06:14 PM

If your father did not have a will, then the house goes into the estate. If he had a will then it will be distributed according to the will.

This will now present a problem because the credit card companies will put in a claim against the estate. So the debts will have to be settled before the house can be transferred to your mom's name,

She won't necessarily lose the house, but she may not be able to dodge the debts.

Maxboots · Jun 25, 2009, 06:21 PM

Thank you so much for your time.
It does not ease my mind but it helps us understand what this means.
More stress :)
Thank you so much

ScottGem · Jun 26, 2009, 06:11 AM

I'm sorry, but the blame is on your dad for not providing for mom. If the property had been titled as both as "tenants in common with joint survivorship", then the property would pass to mom outside the estate and there would be no worries.

You could try to just leave the home in dad's name and not file for probate. But when mom dies, there will be a problem in dealing with the property.

Maxboots · Jun 29, 2009, 12:51 PM

Actually she is on the title of the home and deed to the home. She just was not on the mortgage. The mortgage company did that because my father alone qualified for the refinance, my mother did not work, they both signed the papers so the house transfers to her. So we are okay here - it will be transferred to her name and not my father's estate so the credit card company can't put a lien on it.

Thanks

ScottGem · Jun 29, 2009, 03:37 PM

That's actually odd, generally a mortgage company will not underwrite a mortgage where the property is not in the mortgagee's name.

Was she on the deed as joint tenants with right of survivorship?

s_cianci · Jun 29, 2009, 03:47 PM

I don't think the house would be fair game. A house is considered a marital asset, regardless of whose name(s) are or are not on the deed, mortgage, etc. so by default your mother would have rights of survivorship. Now that your father is deceased the house is legally hers so your fathers' creditors cannot subjugate against it. Now his life insurance may be another issue. If the creditor(s) obtain a judgment against your father's estate, they could intercept any life insurance or Social Security death benefits that your mother or any other beneficiaries have coming. From the tone of your post it doesn't sound like there are any other real assets that your father's creditors could subjugate against. Your best bet is to redeem his life insurance policies, social security death benefits and any other cash benefits as soon as possible, before the creditors have time to obtain a judgment against your father's estate.

Maxboots · Jun 30, 2009, 05:29 AM

Thanks to you both!
In the state of Kansas - it is joint property. My parents refinanced the house for a lower rate since rates dipped in the low 4%. His name is on the mortgage but both are on the deed of the house and the title - and I spoke the mortgage company and they verified the house will be transferred over to her.
As for the insurance money - we are not getting much - just enough to pay his funeral costs so I don't think they can go after that. That check will go straight to the funeral home.
I feel better talking to you guys and getting a feel on my mother's money situation.
I did not think she was going to be responsible. Not that it was a lot on the credit card.
I just went through this with my grandmothers stuff and they received the death certificate and I never heard another word from them. They can't come after her children or grandchildren - they even told me that on the phone.
I appreciate all your help on this situation
You guys really are a wealth of information!
I appreciated it!