Full question:
I am my Fathers Beneficiary of Estate and accounts etc. In the event of his death, can I be held liable for his medical debts to the hospital etc, for any amount that they may be. I don't want to lose his home to cover his debts left behind, but most of all have to refinance my home as well to cover it.
- Category: Debts and Credit
- Date:
- State: Virginia
Answer:
Generally, children are not responsible for their deceased parent's debts. However, there are exceptions:
- If you co-signed or guaranteed a debt, you remain liable even after the other party's death.
- You may be responsible for medical debts if you signed a contract when the decedent was admitted to a hospital or nursing home.
- If you used a credit card, you might be liable for charges on that card, even if your name wasn't on it.
- In some cases, a spouse or child may be liable for necessary expenses, like emergency medical care, provided shortly before death.
- If the deceased received public assistance, a surviving spouse or child might owe reimbursement to the state.
Debts should be paid from the decedent's estate. Children typically do not inherit debts unless they co-signed or are otherwise linked to the debt. In community property states, spouses may be liable for certain debts incurred during the marriage.
After debts are settled, remaining assets are distributed to beneficiaries. If you inherit property tied to a debt, like a house with a mortgage, you inherit the debt as well. If the estate lacks sufficient funds to cover all debts, secured creditors are paid first, and unsecured debts may not be paid at all.
The executor or administrator of the estate is responsible for paying debts and can be personally liable for mistakes. They often seek court approval before paying debts from an insolvent estate to avoid personal liability.
State laws dictate the order of debt payment. For example, costs of administration, funeral expenses, and medical care within six months of death may be prioritized. If there are insufficient funds for all debts, remaining debts are paid proportionately.
Creditors can usually only claim the decedent's assets, and some assets may be exempt from creditor claims.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.