Handling estate / debt when parents dies

[1CavHog]

I have a couple questions, I know there are many on this board in the legal field and also many who have gone through losing parents.

My wife's grandmother died last week. My father in law was executor of the will. The grandmother left barely any assets, has a reverse mortgage on her house, and a sizeable amount of credit card debt. The house will be taken  by the bank which is no issue, however my wife's parents are about to pay off her credit card bills and other debts she had. They are not well off for money and my wife wants to send them money to help. I have no issue helping, but I know that credit card companies can't pursue children for debt like that, it has to come out of the estate. Basically I have one question:

- Am I correct in my assumption that my in-laws are not on the hook for credit card or unsecured debt even if the estate is not worth enough to cover these debts?

I'm all about helping family but I told my wife not to send money until her parents at least checked with a lawyer on correct procedures for handing an estate. My wife is pissed but I am pretty sure I am right.

[Pulled(PP)pork]

ABSOLUTELY NOT!  Not, unless, their names are tied to the card or debt.  that's the risk creditors take and they have no recourse to collect from living family members.
Your wife needs to educate herself about credit debt....I just lost an aunt and she was covered in cc debt, the best the companies can do is try to get a judgement against any equity in her home, which she had none.

Pulled out...

[1CavHog]

Thanks PP, and I already checked and her grandma was the sole account holder of the credit cards.

[Pulled(PP)pork]

Thanks PP, and I already checked and her grandma was the sole account holder of the credit cards.

then whatever companies did business with her, are SOL.  the reverse mortgage issue is trickier than I care to deal with.

It looks like, where your issue lies, is convincing the wife and inlaws to not pay it.  they are not obligated and it's beyond "doing the right thing".....especially concerning their financial situation.


PP

[1CavHog]

Yep, doing the right thing is settling debts to local businesses like the lawn service, hair dresser etc, as far as I'm concerned credit card companies are on their own since they know the risk of lending to an 85 year old. The reverse mortgage is really a non-issue, already talked to the bank and they will offered the option of buying the house back but it's in Tampa and barely worth much anyway and better for all involved if the bank just keeps it. 

[HawgWild]

I read where the credit card companies will attempt to collect these debts from the heirs knowing that legally, the heirs are not responsible for the payment. As PP says "Don't pay."

[1CavHog]

I talked to a friend of mine who went through the same situation. The credit card companies called his dad who was the executor of the will and said he owed them the balance, he said if they called again he would sue them for harassment and he never heard another thing. When they settled the estate the credit card companies were allowed the chance to file against that to pay the balances.

[HawgWild]

Read this article -  You're Dead? Don't Expect That to Stop the Debt Collector - at the NY Times ---> http://query.nytimes.com/gst/fullpage.html?res=9503E2DA123BF937A35750C0A96F9C8B63&scp=10&sq=credit+card+debt+collection&st=nyt

Have your wife read it as well.

[1CavHog]

Thanks

[HognotinMemphis]

ABSOLUTELY NOT!  Not, unless, their names are tied to the card or debt.  that's the risk creditors take and they have no recourse to collect from living family members.
Your wife needs to educate herself about credit debt....I just lost an aunt and she was covered in cc debt, the best the companies can do is try to get a judgement against any equity in her home, which she had none.

Pulled out...

Are you a lawyer, tax expert as well as a medical expert? Dayum! You are one educated dude!

[Pulled(PP)pork]

Are you a lawyer, tax expert as well as a medical expert? Dayum! You are one educated dude!

I have a lot of earned credits at University of Phoenix


PP

[Pulled(PP)pork]

Read this article -  You're Dead? Don't Expect That to Stop the Debt Collector - at the NY Times ---> http://query.nytimes.com/gst/fullpage.html?res=9503E2DA123BF937A35750C0A96F9C8B63&scp=10&sq=credit+card+debt+collection&st=nyt

Have your wife read it as well.

is that mindy mccready's kid in your avatar?  they were looking for him earlier...


PP