Full question:
My mom passed away in December and named me executor of her will and estate. She equally split her assets between my three brothers and me 25% each. She had little in money or assets and a few credit card bills . I contacted them and provided copies of the death certificate at their request. Both said her account would be closed and that would be it. After four months nobody contacted us so we took the assets and split them as my mom directed. I received a letter today from a collection agency of Chase bank saying they want to collect the $663.49 my mom owed. I told them there is no money left and that the bank told me it was okay. The representative told me that was too bad I still owed the money. Do I have to pay?
- Category: Debts and Credit
- Date:
- State: North Carolina
Answer:
A deceased's debts should be paid with the property in their estate (the property left at their death). Children don't inherit their parent's debts unless they created a co-signor/guarantor/surety/joint account relationship to the debt, so that the child's name is on the debt also, and it isn't a separate debt. Spouses will generally only be liable for a separate debt of the deceased if they live in a community property state. However, state laws vary about which marriage partner is responsible for certain debts, depending upon when the debt was incurred, the identity of the debtor, or the purpose of the debt.
Only after the debts are paid will the remaining assets be distributed among the beneficiaries of the will. Be advised that when a child inherits property that is collateral for a debt -- for example, a car that is not paid for or a house with a mortgage -- the debt comes with the property. If there is insufficient money or assets to pay all creditors, then the estate must be divided up as equally as possible, with secured creditors receiving priority. This means that if the deceased parent died with little or no money in their accounts and didn't own a home, unsecured debt, such as credit card debt will not be paid to the creditors.
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.
