QUESTION

My father passed away after being on dialysis, will we be responsible for his medical bills?

Asked on May 13th, 2013 on Estate Planning - North Carolina
More details to this question:
Medicare and his secondary insurance have not paid his bills yet. My brother was on the bank account with my dad, but has since put everything in his name since he was executor of the estate. The house has been deeded to me.
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1 ANSWER

Your father's estate is primarily responsible for your father's medical bills. Depending on which state your father lived in at the time of his death, medical debts are given a priority if the bills were incurred in the last 6 to 12 months. Your brother is doing the wrong things if what you say is correct. In most states, if your brother and father had a joint checking account, then the money in the account would automatically pass to your brother outside of probate. In NC, money from a joint checking account can be added back into the estate if needed to pay bills but I don't know if this rule applies to your situation or not. The same is true of land. If the land was owned by your father but devised to you in his will, the executor could seek to sell the land if it was needed to pay bills. Your brother, if he is the executor, needs to sit down with a probate attorney. An estate needs probated for your father and the hospital or any other healthcare providers or creditors need to be given notice of death and need to file claims for payment of any amounts not covered by insurance. After the time period for filing claims has ended, then your brother needs to see how much money is in the estate and whether there is enough to pay the bills. If so, then they are paid by the estate. If not, then land may have to be sold or funds added in from the joint checking account. In some states, you and your brother would not be directly liable for the medical bills. However, in PA for example, there is a statute which may impose personal liability if your father's estate is insufficient. So, depending on where the estate is pending, it is conceivable that you might be personally liable at some point. However, since your father had both Medicare and supplemental insurance, this might be enough to cover the bulk of the bills. Your brother, if he has not done so, really needs to consult a probate attorney in the county/state where the estate from your father is or would be pending. Your brother needs to ascertain whether there are any probate assets justifying probate and he needs to find out whether proceeds from the land or joint checking account could be added in to satisfy any claims that are outstanding.
Answered on May 17th, 2013 at 7:50 AM

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