Probate question

[Holly_Hobby]

My mom cashed in her life insurance policies and spent the money (she's mentally ill). My question is if me and my siblings are now responsible for her final bills? Does anyone know? Thanks.

On edit, she's being cremated and that's been paid in advance. I'm asking about final hospital bills, etc.

[Robbien]

1. There is this site

http://wiki.answers.com/Q/Are_children_responsible_for_their_parent's_debts_when_the_parent_dies_even_if_you_are_estranged_and_haven't_been_in_contact_for_many_years

Are children responsible for their parent's debts when the parent dies

No you are not responsible, but if your parent(s) left a Will and you are named Executor or someone else is and you are heirs in the Will (highly possible) then the Estate of your parent(s) meaning house, property, summer homes, monies, stocks/bonds, savings in banks, etc., will have to go to Probate. Probate makes sure that all taxes on any property are paid and all out-standing debts are paid first. What is left is divided according to the wishes of your parent(s) in the Will. It take approx. 1 year (or less) to Probate a Will.

[Holly_Hobby]

4. Thanks for the link

However, my mom rents and doesn't own anything of value. Her car is leased, so any remaining lease payments would be due, and that's my concern. She didn't get the extra insurance to pay it in the event of her death.

[Robbien]

7. Just turn in the car and hand the guy a copy of your mom's death certificate

If the car rental place gives you a hassle, tell him its not your concern and he should try to get it out of her estate in probate. But as far as you know there are no assets.

Then walk away.

[Holly_Hobby]

9. Wow, thats easy. Amazing. Thanks. n/t

[TahitiNut]

10. I doubt anyone is required to actually deliver the car.

Indeed, it's probably not even clear what location would suffice ... and I'd merely notify the lessor that the lessee is deceased and they can pick up the car themselves.

When I leased a car, I had no idea WHERE it would've been returned unless hey notified me, since the lease was sold to a national leasing company after I entered into the lease at the dealership and then moved to another state. This is common. Leases are brokered.

[onenote]

2. I'll let an expert expound more fully

But the short answer is that her estate, whatever may be left of it, will be responsible for her final bills, unless you are co-debtors or guarantors of her debt.

[Holly_Hobby]

5. Thanks

None of us (siblings) were co-signers for her car lease. That is the only debt she has at the moment.

[TahitiNut]

3. The debts of a deceased person are claims on the estate only.

If the estate is insufficient to pay the debts, the administrator of the estate (often the next of kin) is responsible for allocating whatever assets exist equitably. The adminstrator is not personally liable for those debts. (Any debts with cosigners can be levied against a cosigner, though.)

Probate is a separate issue and small estates don't qualify.

Insurance proceeds are also separate unless the beneficary is "the estate".

[Holly_Hobby]

8. Thank you

We don't know who the executor of the estate is. She's changed it many times throughout the years. She won't let us see the will, so we won't know until her passing.

The only property she owns is furniture and clothing.

[Lex]

6. Debts of a deceased parent are NOT passed on to their children

despite what TV commercials lead you to believe.