Does the family inure the debt the father made without their knowledge once he dies?

Question

Hello, my father has terminal cancer and has incurred debt without my mother’s knowledge and/or consent.  Once he passes is my mother, or his children, responsible for his debt?  As far as we know he may have $18,000 in death benefits but no other life insurance.

Dera Johnsen-Tracy · Answer

If your parents reside in a community property state, or in a marital property state, then your mother would likely be held responsible for any debts your father incurred during marriage.  Note that there are rare exceptions to this rule, and your mother may wish to consult with an attorney regarding her options.  On the other hand, your father's children would likely not be held responsible for his debts, unless they entered into some type of personal guarantee.

Vincent Liberti · Answer

This depends entirely upon the laws of the state they live in.  Many states impose liability for medical debt upon the spouse.  Some states impose the liability upon children as well.  So it depends upon their state's laws.

Evan Guthrie · Answer

The family of the deceased is not responsible for the debts of the deceased. All debts of the deceased are in the estate.

Geoffrey Germane · Answer

If the debt was in his name alone and was not secured by collateral, the debt becomes a debt of his estate, and not of his heirs.  Any property owned by his estate would be potentially subject to satisfying the debt.

Robert Slotkin · Answer

Heirs are not responsible for paying a decedent's debts. Hopefully the life   insurance is payable to one of you, not to his estate.  In the latter  case,  the $ coming into his estate would be available to pay creditors before  it got  to you guys.

Nancy Harkess · Answer

The children of the deceased are not responsible for his debt.  However, in a community property state such as Nevada, a spouse is responsible for the community debt.  Your mother should see an attorney.  She may be able to negotiate with the creditors or file bankruptcy.

Austin Hirschhorn · Answer

On his death, the debt of your father would pass to his estate.  If his life insurance is payable to a specific beneficiary or beneficiaries it would pass directly to the beneficiary and would not be subject to the claims of creditors.

S Hunter · Answer

The general rule is that unless someone else signed for the debt they are not responsible for it. Therefore, if neither his wife or his children agreed to pay the debt or cosigned for it they are not obligated to repay it. However, the people he owed money to will be allowed to go after his probate estate. Depending upon how the insurance benefits were set up they may be able to go after it if your father did not name a beneficiary on those benefits.

William Spern · Answer

My sympathy for your loss. You may have a moral obligation but no legal obligation to pay unsecured debts of your late father. If your mother or any other family member never agreed to the debt, they have no obligation to pay the debt. This all assumes that there is no estate opened to transfer assets. If an estate is opened, the estate must give notice of death and a time period for all debtors to make a claim against the estate.

Douglas Tull · Answer

Generally no, the family is not responsible, but assets remaining in father's estate might be, depending on value.  The question discusses death benefit as if that is the only asset.  If that is the case, the death benefit is not an asset of his estate and may not be assessable for payment of the father's debts.  Also, if mother/wife or children signed any documents agreeing to be responsible for father's debts, then it would be those agreements, not the law, that would make them responsible.

Charles Perry · Answer

The community property of your mother and father can be reached for   the debt that your father incurred.  When someone passes away,   moreover, their estate is liable for their debts, and any property   transferred without those debts being paid can still be reached by   creditors to pay the debt, unless those debts are extinguished in a   probate proceeding.  It seems clear that any creditor of your father will be able to make a   claim against the death benefits once they are received, and will be   able to "follow" those benefits to whomever receives them.  In any   event, a person's estate does not pass automatically free and clear of   any debts that person may have incurred.

Michael Yeksavich · Answer

I am not sure I have enough facts to answer the question.  However as a general  rule a person's debt is  private to that person.  It is important for what the  debt is for.  If this becomes a serious issue please consult with an attorney.

James Dunn · Answer

Under Utah's family expense statute, the wife, but not the children are responsible for debt incurred by the deceased to provide the "necessaries of life" which include, clothing, food, shelter, and medical care. Any frivolous or other expenditures, the surviving spouse is not reponsible for. However, the Probate Code makes clear that there can be no distribution to heirs until all debts of the decedent are paid. To the extent that distributions of the estate are made to survivors of the deceased when a proper claim has been made against the estate, the personal representative or heirs who receive $ can be hedld liable to the creditor who did not get paid.

Brian Haggerty · Answer

His estate is bound to pay the debts. If the assets in his estate are insufficient to pay his debts, then they may go unpaid.  Debts which are "expenses of the family" may be charged to the spouse in some cases.

Frances Headley · Answer

Most debts incurred during marriage are considered community debts and the surviving spouse remains liable for those debts.  There are some special rules related to taxes.  You should consult a family law/estate planning attorney to review all of the facts and advise you.

Jayne Sebby · Answer

Whether your mother, yourself, or your siblings become liable for the debt depends on a number of factors.  Did your father accrue this debt in his name alone?  Is the debt part of a business that your family operates or is part of?  Is the debt due to a gambling problem or some other problem?  Does it have some connection with his illness?  Did he secure the debt with property he jointly owned with any of you?  In a normal situation, the estate alone is responsible for the decendant's debts.  However, in some situations, others may also be held responsible.  Check with an estate attorney for specific answers.

Edward Olson · Answer

Upon your father's death, his debts pass to his estate.  No one else is personally liable for his debts (except to the extent that you hide his assets from his creditors).      You should probably speak to an attorney soon.

Edwin Fee · Answer

Generally, a deceased person's spouse and children are not responsible for the deceased person's debts, unless the spouse or children somehow agreed to be responsible for the debts (for example, by co-signing a loan).

Michael Stafford · Answer

Children are not responsible for the unknown debts of their parents. Your father's estate will be responsible for his debts and your mother could be responsible for your father's debts.

Maura Curran · Answer

The answer to your question requires further information.  However, generally if no other person agreed to pay for your father's medical bills, etc., then those bills are his and his alone, and typically children do not inherit the debts of a parent.   Florida has laws benefitting marital property, such as a bank account or homestead property, that can protect the property from one spouse's debts. There are certain requirements that must be met and you should consult an attorney to discuss your particular circumstances to find out who is liable to pay for the medical bills, etc. and if there is anything that can be done to preserve the marital assets.

Leonard A. Kaanta · Answer

No, your are not responsible for his debt, but his estate is. The insurance policy is not part of the estate.

Mark L. Dodds · Answer

If your mother does not know about the debt, then she could not have consented to the debt; therefore, your mother has no personal obligation for the debt upon your father's death. However, upon your father's death, his estate, consisting of his separate property (and his community property, if he resides in a community proper state), is liable for any of your father's just debts. Therefore, upon your father's death, the creditor may sue his estate for payment of the debt. Thus, although your mother may anticipate inheriting all of your father's estate, that estate will be liable to pay the debt, and if the creditor is successful in making its claim against the estate, your mother will, in effect, pay for the debt due to inheriting your father's estate subject to this debt. With that said, if your mother is the direct beneficiary of the life insurance proceeds, the creditor may not reach the $18,000 death benefit from the insurance policy, as long as those proceeds are not payable to your father's estate. If your mother is deceased, then the same principles apply to the children as inheritors of the estate. In no event will your mother or the children be obligated for the debt in excess of the value of your father's estate, excluding the insurance proceeds. So, for example, let's say your father's debt is $50,000, and that he has separate property valued at $20,000 and there is $18,000 in death benefit payable to your mother under the insurance policy. The creditor may go after only the $20,000 of separate assets of your father, and if the creditor is successful in collecting the $20,000 in satisfaction of the debt, that is all the creditor will be able to receive. The creditor cannot sue your mother or the children for the $30,000 remaining on the debt, neither can the creditor touch the insurance proceeds.

John Brennan · Answer

You will have to provide more details for a firm answer, but in general if it is his debt only it will be a claim against his estate, and no others.  Now is the time to put a plan in place and review his, and your mother's situation. Make an appointment with my offices, or call an attorney with all of the facts for specific advise and counsel.

Victor Waid · Answer

Probably not in light of the value of his estate.

James Frederick · Answer

The family is not responsible for this unless they agreed to be responsible for it. Your father's ESTATE, if he has one, would be responsible for creditor claims. His estate would consist of any assets that your father has in his name alone, without beneficiaries designated.

Roman Aminov · Answer

The family members do not owe the debt personally, but the proceeds from his estate may be used to pay the debt. The answer depends on the nature of the death benefits his estate or family members are owed.

Peter James DeRose · Answer

You or your Mother personally, are not responsible for this debt. However, your Father's estate will be responsible. If your Father has property you need to consult with a skilled attorney regarding your options. There is a chance that something can be done.

Isaac Shutt · Answer

No, only his estate is liable for his debts. None of the family will be liable for the debts, unless someone co-signed on the debt.

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Does the family inure the debt the father made without their knowledge once he dies?

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