QUESTION
What do 5 beneficiaries do on credit card debt and claim on property?
Asked on Apr 30th, 2014 on Estate Planning - Illinois
More details to this question:
Dad and mom passed leaving 4 sons, one granddaughter 1/5 interest upon her/his death. Mom signed for home depot card, never used it, but a son did. They initially had card protection but eventually quit accepting store payments and coerced mother into resuming paying debt. Now mom is dead. They are saying there is no protection now. We even had a payment plan set up in 2011 for zero interest and $100 a month but when mom came down with cancer those changed things. They now put a claim on our inheritance.
8 ANSWERS
3 Awards
The creditor is entitled to be paid before the beneficiaries receive a penny. Speak with a probate attorney to make sure that the creditor complies with filing its claim after being given legal notice. If that has been done, then the creditor[s] must be paid before any distributions are made to beneficiaries. It may be that the estate has a claim against the brother. Speak with counsel to see if there is a recovery action possibility.
Answered on May 05th, 2014 at 5:42 PM
Business Planning Attorney serving Livonia, MI
at
Frederick & Frederick Attorneys at Law
Update Your Profile
Tough situation. You may be able to get the creditor to negotiate with the estate, if there IS an estate. If there is no probate estate, then there is nothing the creditors can do, in most cases.
Answered on May 01st, 2014 at 3:33 PM
Trusts Attorney serving Sacramento, CA
at
Law Office of Victor Waid
Update Your Profile
Creditor is entitled to be paid, so work out an agreement with them; otherwise the creditor lien stays on your inheritance.
Answered on May 01st, 2014 at 11:56 AM
Probate Attorney serving Newport, OR
at
Minor, Bandonis & Haggerty P.C.
Update Your Profile
It's going to have to be paid out of mom's estate; petition the court to charge that to the share of the son who used the card.
Answered on May 01st, 2014 at 11:43 AM
Business Law Attorney serving Bingham Farms, MI
at
James T. Weiner, P.C.
Update Your Profile
if only 1 son used the card for his own benefit the ESTATE should sue that son for reimbursement for the costs Otherwise all heirs will end up splitting the debt equally since it will need to be paid by the Estate.
Answered on May 01st, 2014 at 9:45 AM
2 Awards
If there is an estate, it needs to be paid. Have an attorney help with the probate if you don't have one already.
Answered on May 01st, 2014 at 9:43 AM
The estate of the deceased person is obligated to pay all that person's debts and taxes before distributing whatever remains of the estate to the heirs and beneficiaries. Mother apparently gave her son permission to use her credit card at Home Depot. Therefore, her estate is responsible for paying off the remaining charges on the card with money from the assets of the estate. The executor of her estate can attempt to use the funds that would have been included in the inheritance of the son who made the charges. However, since Mother allowed him to use the card, she essentially was agreeing to pay off whatever debts he rang up.
Answered on May 01st, 2014 at 9:22 AM
Commercial Attorney serving Chicago, IL
at
Ashcraft & Ashcraft, Ltd.
Update Your Profile
The granddaughter can only be an heir if she is named as a legatee under a Will or she is the child of a predeceased sibling to the 4 sons who were alive at the mother's death. All creditors of your mother's estate must be paid before any distribution can be made to an heir or legatee. A probate should be opened and creditors allowed to file claims. Creditor payouts can be worked out. If it can be established that a debt collected from the estate was a indebtedness owed by an heir to the decedent then the estate can prove that indebtedness to the estate and collect from the heir. If the parties agree on the debt, or the judge enters an order memorializing the debt, then the debt to the estate can be offset against the distribution due the heir.
Answered on May 01st, 2014 at 8:34 AM