[nomad1949]

Mother is 93 and has pancreatic cancer.I, the daughter am the only living beneficiary will inherit through a trust of a one million dolaar home and through TOD's about $15,000. In stocks. There is $22,000.00 in credit card debt. Will I be responsible for this credit card debt in California? My Mother signed up for credit card protection in Jan 2011. HSBC($1.35 for every $100 outstanding month end balance) says it pays up to $25,000.00 upon loss of life and B of A(.85 for $100 of outstanding month end balance) says there is a 60 day waiting period tp pay up to $25,000.00 upon Loss of Life. Will this really cover and pay for this debt ? Or is there a loop hole I am missing? Or does the estate NOT have tp pay for this credit card debt since it is unsecured debt in California?

[JudyKayTee]

Let's see, you are going to inherit $15,000 and a million dollar home and you want to know if the estate will have to pay your mother's debts when she dies.

A lot depdends on the wording of the trust. Her estate is responsible for paying her debts. You personally are not responsible for paying her debts.

There is no way to know if/when the cc insurance will pay off the debt. I've seen these "insurance policies" written in many ways. If it is purely a cc insurance policy it will pay off the debt up to a certain amount. There is always a possibility that it is also a life insurance policy - but I really doubt it.

Did your mother have health problems and disclose them when she got the insurance? Some do not require any type of medical info; others do.

[nomad1949]

Yes, I had my Mother on the phone . I informed the credit card protection plus that Mom had a prognosis.The Credit card protection for HSBC said Mom's coverage would be immediate and B of A said there is a 60 day waing period, that if she passed prior to that 60 days Mom 's debt would not be covered. I asked the over and over again on the phone and the credit card protection assured that she is covered. I am just weary about this and wonder if I am missing something.I did not want to call them again and overly call attention. Do you think there is any harm in calling the caredit protection and double checking?

[JudyKayTee]

No, I'd call and double check and tell them WHY I'm calling. I believe the 60 day waiver is part of the agreement - I get these offers all the time and, yes, they say you cannot collect for the first 60 days (in some cases).

She already has a prognosis as well as the insurance so I don't see any danger in calling and asking. It's not like they can cancel the policy - ! They may not be happy but... that's the business they're in.

[joypulv]

I can't count how many times a sales rep has told me something was true that later turned out to not be.
They get either brownie points or commission on those calls and some will Make Stuff Up.
You need to rely only on the written agreement with each bank. She has been charged for one month's worth, so it's not a great expense yet.

[JudyKayTee]

I JUST got an offer in the mail - it says they will not pay for the first 60 days. After that they pay the monthly payment. At time of death they pay the whole balance.

Says nothing about life insurance or any other insurance - other than payment of the debt.