Do credit cards have to be paid off by person estate due to death?

My brother passed, he was a single male and living in an apartment. My mother has recieved money from his 401k and two different insurance companies. now does she have to pay off any debts with that money? or should it be taken right out of his estate? the debts are two credit cards, one car, and funeral costs. the car dealer took the car and said if they dont get the full 8000 from auctioning it they%26#039;ll charge her the difference. %26quot;can they do that?%26quot; so the biggest question is that after my mother recieved the 401k, and insurance monies can they come after her? she is not co-signed on anything, but is the benficary.

Do credit cards have to be paid off by person estate due to death?

Assuming that the 401K was %26quot;Payable on Death%26quot; to your mother, and she was the direct beneficiary of the Policies, these funds were never part of the Estate.

The bills he left behind belong to the estate, and no one else unless they signed for them. If there%26#039;s not enough money in the estate, the creditors lose.

You have a slightly different situation with funeral costs. Unless he pre-arranged the funeral and pre-paid it, it%26#039;s likely that the family made the arrangements. This MAY be paid from the estate, but if the estate isn%26#039;t sufficient, the family that signed the arrangements will have to make good.

Everyone else can go pound sand.

Do credit cards have to be paid off by person estate due to death?

ALL BILLS GET PAID FROM THE ESTATE. NO MATTER WHAT THEY ARE. IF THEY ARE VALID BILL AT THE TIME OF DEATH THE ESTATE PAYS FOR THEM. WHAT EVER IS LEFT GETS DIVIDE ACCORDING TO THE DECEASED WISHES.

Do credit cards have to be paid off by person estate due to death?

I%26#039;m no lawyer but generally and estate has to settle debts etc. once a person dies.

Creditors will go after the estate-- if that includes money from insurance, I%26quot;m sure its up for grabs.

Sorry, but somebody has to pay the debts---That%26#039;s why there%26#039;s life insurance, etc.

Do credit cards have to be paid off by person estate due to death?

Contact an estate attorney to review the details of his credit card agreements. Each credit card company has different rules on postmortem repayments. Sorry for your loss.

Do credit cards have to be paid off by person estate due to death?

No, only if your name is on the card, if they try to make you pay, fight it!

Do credit cards have to be paid off by person estate due to death?

All debts not covered by insurance in the case of debt is to be paid off by his estate. So whoever is in charge is to take care of these things as well as his funeral. I take it there were issues.

Do credit cards have to be paid off by person estate due to death?

The probate court will take out what your brother owed and then give your mom what%26#039;s left.

http://ask.yahoo.com/20041025.html

The car people may have a claim, but once the executor or the probate hands money over to your mother, that money is GONE. They can%26#039;t come after your mother unless she is the executor.

I also know from experience that if you wait them out, the car people will go away after a few years.Mine was a repo, but I got the feeling that they really don%26#039;t have the right to recover any more than the auction will bring on the car and that%26#039;s why they finally gave up. They claimed they didn%26#039;t get what the car was worth, but they did get back more than I owed, so I was willing to meet them in court, but they never summonsed me..

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Do credit cards have to be paid off by person estate due to death?

Money is taken from his estate which includes the 401K even though Mom was the beneficiary. The fact that she was listed as the beneficiary simply avoids probate. She should pay off his debts with that money. Money from the life insurance company is a different matter. A single man buys life insurance to cover his debts, not generally to support his mother. That is the beneficiary%26#039;s money unless it was made out to the estate. Morally and normally, she should pay the debts with that money, but there is no requirement for her to do so.

Had the dealer been reasonable, they could have waited until your mother received the 401K and she then could have paid the car loan off, but since they already took the car, too bad. However, he can only sue the estate for the difference (and usually not even that), not the Mom since she wasn%26#039;t party to the transaction and the dealer has already taken satisfaction by repossessing the vehicle. If she gets another nasty phone call, she should just tell them that they will have to sue the estate in small claims and don%26#039;t call again.

Do credit cards have to be paid off by person estate due to death?

Generally the estate has to pay expenses- but what I see happened here is that the 401 K and if insurance listed your mom as beneficiary - not the estate then she may be protected. So she may get out of paying-

Were there any other assets? Was a will probated? Sounds like no.

The car dealer will have to show why the car did not get the expected return.

Do credit cards have to be paid off by person estate due to death?

yes. The estate must pay off debts. However, if she was given money as a benificiary, that money is hers. Thats why she was sent a check directly. Any cash in the bank, car etc would have to go for debt. FYI only those listed as borrowers are responsibl for debt. Family is not, unless they cosigned.

Always best to check with an estate lawyer, though

Do credit cards have to be paid off by person estate due to death?

Definitely the estate.

However, there may be a misunderstanding. It%26#039;s possible the car dealer have mistaken your mother as your brother%26#039;s estate administrator when she%26#039;s in fact only a beneficiary. However, I guess you all didn%26#039;t had a chance to explain all the facts either.

I would spend a few hundred bucks to consult with an estate attorney. Tell your mom to not spend any money yet. She can spend it after you all get the all-clear from an estate attorney who specialize in this sort of stuff.

And to explain the car... Yes, it%26#039;d be sorta like the car was repossessed. The dealer can take the car back and auction it off, and if that%26#039;s not enough to repay the loan, then the estate has to pay for the difference. However, you%26#039;ll need to check the original contract to be sure what are the steps should the signer passed away. Did they give you enough time and all that. So, get one quickly. Before you lose any rights you don%26#039;t have to. Car dealer may be auctioning off that vehicle now...