Question!!
#51
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The beneficiary of the insurance is not liable for any debts of the deceased. The deceased ESTATE is liable for the debts (our assets stand good for our debts, just listen to Dave Ramsey) so if your parent had any assets, those should be sold and the money used to cover the debts. Any remainder would then be payable to the deceased heirs.
#53
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Join Date: Jul 2010
Location: Central Willamette Valley, Oregon, USA
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Originally Posted by laalaaquilter
The beneficiary of the insurance is not liable for any debts of the deceased. The deceased ESTATE is liable for the debts (our assets stand good for our debts, just listen to Dave Ramsey) so if your parent had any assets, those should be sold and the money used to cover the debts. Any remainder would then be payable to the deceased heirs.
#54
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Join Date: Oct 2010
Location: WI
Posts: 706
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Spoke with my husband who has been in administration with senior care. The laws vary from state to state. He suggested contacting the sate IRS a financial planner and or legal advice all of which should be free. He indicates hospitals and care facilities can leagally put a lean on properties, insurances etc until bills are settled.
#55
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Join Date: May 2011
Location: Springfield, Illinois
Posts: 645
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Your sister is named beneficiary on the insurance policy - that is her money, period. She is not obligated to spend it on any of your mother's bills or other debts. Note, she's also not obligated to share it with anyone else - siblings, cousins, etc. It's all hers.
If there is no will, and even if there are no viable assets, there are still papers that need to be filed so that an administrator can be named, and Letters of Office issued. No titles can be transferred or property sold without the Letters of Office.
All assets not shared (that is, having someone named as owner with her) automatically become the property of "The Estate of ..." [insert mother's name]. Cars, bank accounts, homes, jewelry, etc. All that will be sold off and used to pay any debts owed by the Estate. These debts are given certain priorities - that is, some people get paid before others according to the laws in your state. MAKE SURE you go by that list. If you pay someone out of turn, the others have a right to sue the estate AND the administrator for mishandling the estate.
Please, seek the advice of a reputable attorney in your state, even if it's just a one-time consulting visit. Estate management can be done independent of an active attorney, but at least have them give you a detailed list of what needs done, where and how to file, deadlines for filing, etc.
If there is no will, and even if there are no viable assets, there are still papers that need to be filed so that an administrator can be named, and Letters of Office issued. No titles can be transferred or property sold without the Letters of Office.
All assets not shared (that is, having someone named as owner with her) automatically become the property of "The Estate of ..." [insert mother's name]. Cars, bank accounts, homes, jewelry, etc. All that will be sold off and used to pay any debts owed by the Estate. These debts are given certain priorities - that is, some people get paid before others according to the laws in your state. MAKE SURE you go by that list. If you pay someone out of turn, the others have a right to sue the estate AND the administrator for mishandling the estate.
Please, seek the advice of a reputable attorney in your state, even if it's just a one-time consulting visit. Estate management can be done independent of an active attorney, but at least have them give you a detailed list of what needs done, where and how to file, deadlines for filing, etc.
#56
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Originally Posted by donnajean
If you are the benificiary of the Life Insurance, I don't think you would be liable for any bills that do not get paid from the Estate proceeds. If your father was the benificiary, than I think it's a different story. I think you could get this answer by asking a Life Insurance company.
#57
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Join Date: Feb 2007
Location: Illinois
Posts: 2,098
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Originally Posted by Becka
Your sister is named beneficiary on the insurance policy - that is her money, period. She is not obligated to spend it on any of your mother's bills or other debts. Note, she's also not obligated to share it with anyone else - siblings, cousins, etc. It's all hers.
If there is no will, and even if there are no viable assets, there are still papers that need to be filed so that an administrator can be named, and Letters of Office issued. No titles can be transferred or property sold without the Letters of Office.
All assets not shared (that is, having someone named as owner with her) automatically become the property of "The Estate of ..." [insert mother's name]. Cars, bank accounts, homes, jewelry, etc. All that will be sold off and used to pay any debts owed by the Estate. These debts are given certain priorities - that is, some people get paid before others according to the laws in your state. MAKE SURE you go by that list. If you pay someone out of turn, the others have a right to sue the estate AND the administrator for mishandling the estate.
Please, seek the advice of a reputable attorney in your state, even if it's just a one-time consulting visit. Estate management can be done independent of an active attorney, but at least have them give you a detailed list of what needs done, where and how to file, deadlines for filing, etc.
If there is no will, and even if there are no viable assets, there are still papers that need to be filed so that an administrator can be named, and Letters of Office issued. No titles can be transferred or property sold without the Letters of Office.
All assets not shared (that is, having someone named as owner with her) automatically become the property of "The Estate of ..." [insert mother's name]. Cars, bank accounts, homes, jewelry, etc. All that will be sold off and used to pay any debts owed by the Estate. These debts are given certain priorities - that is, some people get paid before others according to the laws in your state. MAKE SURE you go by that list. If you pay someone out of turn, the others have a right to sue the estate AND the administrator for mishandling the estate.
Please, seek the advice of a reputable attorney in your state, even if it's just a one-time consulting visit. Estate management can be done independent of an active attorney, but at least have them give you a detailed list of what needs done, where and how to file, deadlines for filing, etc.
#58
Senior Member
Join Date: May 2011
Location: Springfield, Illinois
Posts: 645
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Originally Posted by quilterj
First of all thanks to all of you for your input. Even though our mother didn't have a will, only owned the trailer that they lived in, and had just the life insurance. And only my sisters name was on the policy. One of our brothers says that they have the right to take her to court to collect money and or the house. He said that my sister told him that my mom had told her to share. I don't recall my sister saying that my mom said anything like that. But she says that she is going to share but not as much as she said she would when mom first passed away. If the house goes to probate he won't be able to do anything about it right?
Conversely, he can try to collect from the proceeds of the sale of the home, but that would be a judge's decision. It depends on how your state prioritizes the debtors vs unacknowledged heirs.
Again, Please have her talk to a reputable attorney.
#59
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Originally Posted by quilterj
Originally Posted by serenitybygrace
My dad's will states that the bills would be paid first. Do you have a will? Do you have a lawyer? You may have to probate the will. A lot depends on the state you live in.
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