More details to this question:
My mother has terminal cancer and is on hospice. She had less money on an IRA CD than she owes to credit card companies. I am on her checking account. How can I save her IRA from credit card companies after she passes? Can I save it for me and my children? Please help.
9 ANSWERS
Commercial Attorney serving Chicago, IL
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Ashcraft & Ashcraft, Ltd.
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With an IRA account would have a your mother would be able to name a designated beneficiary for the account. Upon her death the account would transfer to the designated beneficiary and would not be part of her estate. If the asset is not in her estate the creditors will not be able to file a claim against I those funds.
Answered on Mar 07th, 2014 at 8:48 AM
Probably not. Your mother is obligated to pay her bills even if it takes every cent she has. After her passing, the executor of her estate is required to collect all of her assets and pay off all or as many of her bills as possible. Attempts to hid or divert those assets could result in criminal and civil charges.
Answered on Mar 07th, 2014 at 8:48 AM
Trusts Attorney serving Sacramento, CA
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Law Office of Victor Waid
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The money your mother accumulated is for her care and not your inheritance; children are not entitled to an inheritance. And the taxpayer does not want to be stuck paying for her end of life medical bills.
Answered on Mar 06th, 2014 at 10:57 PM
Edwin K. Niles
An answer requires more space than we have here, and involves administration of a small estate (assuming no other assets). Upon death, you should give the required notice to creditors and hope that the card companies sleep through the 4-month filing period. Please see a probate lawyer at the appropriate time.
Answered on Mar 06th, 2014 at 9:08 PM
Thomas Edward Gates
Sorry, the money in her estate must first go to creditors and then the remainder would go to the beneficiaries.
Answered on Mar 06th, 2014 at 9:06 PM
Probate Attorney serving New Orleans, LA
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James G. Maguire
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In most cases, the funds in an IRA are paid to the beneficiary named on the IRA documents. They are not considered part of your mother's estate, and the credit card companies cannot go after them.
Answered on Mar 06th, 2014 at 6:31 PM
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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Hello~ The IRA passes outside of probate and is not subject to creditor claims. The bank account MAY be another matter depending on the amount in the account and the manner in which the account is titled.
Answered on Mar 06th, 2014 at 6:31 PM
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I am sorry to say this, but no one is entitled to an inheritance. If your mother did not properly plan, it may very well turn out that you get nothing. Once she passes, meet with an attorney and see if there is anything that can be done. It is possible the IRA is not subject to creditor's but it is hard to say. You will have to meet with an attorney. I am sorry about your mother.
Answered on Mar 06th, 2014 at 6:30 PM
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No, your mom's bills and creditors are a priority. You are not entitled to an inheritance. This information is only intended to give general information in response to an inquiry. It does not establish an attorney client relationship. This response is only based upon the limited facts presented and is merely intended to assist you in determining if you should contact an attorney to provide you with legal advice.
Answered on Mar 06th, 2014 at 6:29 PM