Paying off dead relatives debt?!

[onestepcloser]

Okay.....hears my question or situation as you might want to call it.

My mother is very close to being in the grave - and her and father have much debt. DH and I don't make enough to pay it off even in five years. We live in New Mexico and are not sure we we have to pay off the debt when they die or not. Does any one know this or how to find out without setting an appointment with an attorney?!

[Cass]

No, it is in their names. Unless your name is on anything jointly, you are not responsible. That doesn't mean some creditors won't try though.

[zibazinski]

They'll go after your dad first.

[Clever Username]

Your mother has an estate.
Everything that she owns.
There are state specific ways of handling things that she owns together with her husband.
^^^This is probably the biggest thing for you to look into.

When she dies, he estate gets liquidated. Debts get paid. Anything left gets distributed to heirs.
Sometimes there's nothing at all.
Other times debt get partially paid.

Do they own a home? Do they own it together? Do they have any equity?

Other things like retirement and life insurance usually pass outside of the estate. Today's the day to confirm and correct that.

[bluevette]

Most likely your father would be responsible for the debt (if it's joint). Otherwise, only your mother's estate is responsible. If there is nothing in the estate, then the creditors just have to take it as a loss. It's a risk of giving out credit. You are not responsible for any of their debt unless you co-signed or unless you sign something accepting responsibility (which creditors may try to get you to do, but don't fall for it). Their debt will die with them. However, if they have a house, you can't sell the house and take the proceeds without paying off the debt. Debt must be paid out of the estate before any inheritances (excluding life insurance and possibly retirement accounts).

[kadee79]

And don't forget that a lot of places will write it off when someone passes! The hospital did when my first hubby passed & I had been the one to sign all the papers!
I was calling them to set up a payment schedule & the gal told me not to worry, just send them a copy of the death certificate & they would write it off. After a couple of weeks she sent me back the death certificate & a copy of the bill marked "settled"!
Worked for me!

[mizbear]

I would make sure you check with the local laws just to be sure. You don't want to get any nasty shocks. We found out how nasty and down low companies could be after my grandfather died of cancer. His accounts were paid, as were the joint accounts. The only people he owed money to was directly related to his cancer treatment- never heard from them- just would get a bill. No, the people that called were calling regarding my still-living DGMs personal accounts trying to get her to pay off the accounts. I fielded phone calls after his death. One creditor told me that they wanted her to pay her account off early because they didn't want to get stuck with the bill if she died too- he got cussed.