Are children responsible for debt of parents?

[AZen]

What is the name of your state? Indiana

My mother is ill and will not be with us long.

She took out a home equity loan a few years so there is not much equity in her house. She has a credit card balance that includes a recent balance transfer in which she paid off one of my siblings credit cards. And now there are mounting medical bills.

I assume the house will have to be sold to pay off the home equity loan. Other than her vehicle which is older and not worth much the only asset she has is a $10,000 life insurance policy. Which she intends to be used for her burial costs.

My question is, will my siblings and I be responsible for her medical bills and credit card debt?

Thank you.

[BelizeBreeze]

who is listed as beneficiary of the insurance policy?

[AZen]

My siblings and I

[BelizeBreeze]

Then you're right, the home will have to be sold to satisfy the creditors and anything else that passes through probate.

However, insurance does not pass through probate so that can be used by the beneficiaries as they see fit.

If there is not enough in the estate to satisfy all creditors, well tough luck for them.

[Ladynred]

Bottom line, you are NOT responsible for your mother's debts. Her debts have to be paid out of the estate, in this case, her house.

[BelizeBreeze]

Originally Posted by Ladynred

Bottom line, you are NOT responsible for your mother's debts. Her debts have to be paid out of the estate, in this case, her house.

This is VERY DANGEROUS territory woman. You actually agreed with me

Be afraid....be very afraid

[Ladynred]

LOL It happens...

[AZen]

Thank you both very much. The reality of losing my Mother is hard enough, to have this weight lifted helps a lot.