Full question:
My mother recently gave me a general power of attorney to handle her legal affairs. My Mom is over 70K in debt. Upon her death am I responsible for and do I have to incurr her debt because I have her power of attorney.
- Category: Power of Attorney
- Date:
- State: Alabama
Answer:
As an agent under a power of attorney, you are generally not personally liable for your mother's debts, provided you act within your authority and do not misuse it. When someone passes away, their debts are settled using the assets in their estate. You do not inherit your parent’s debts unless you are a co-signer or have a joint account with them. Review the power of attorney documents carefully to ensure you haven’t agreed to be responsible for her debts.
If your mother has a pension or other assets, those may be used to pay her debts after her death. However, if she has little or no money and no assets, unsecured debts, like credit card debt, typically won't be paid. Remember, if you inherit property that is collateral for a debt, such as a car or house with a mortgage, the debt will transfer with that property. In cases where there are insufficient assets to cover all debts, the estate will be divided among creditors, with secured debts taking priority.
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.