PA - Mother concered over deceased spouses cc debt

[rlyddy]

What is the name of your state? Pennsylvania

My father passed away a week and a half ago and had a credit card (Sears) in his name only. My mother is still living and had all of their assets (a joint checking account) in her name. They have no other assets, they were not home owners. Their car is in my mothers name only.

My mother is petrified that when Sears is notified of my dads passing they will look to her to satisfy his account. My father had no other assets other than a $7000 life insurance policy, of which $3500 was used for funeral expenses.

Does my mother need to worry about Sears and should she notify them?

Bob

[Debt Guy]

Bob,

In my opinion, your mom should write a letter to Sears telling them that your father is deceased and that there was no estate. She should attach a copy of the death certificate.

Your father's debts should be paid out of his estate. Since he left no estate of substance and what little that was left was used for burial expenses, there is no estate. I'm not a lawyer but my common sense tells me that probate would not be required where the estate is so small.

The life insurance policy is not part of your father's estate. That money goes to the beneficiary (presumably your mom) and is hers. Period. Sears will ask for it. Your mom should politely tell anyone who asks that it is none of their business.

Your mom should open a new checking account in her name only. She should just go ahead and close the old account.

From what you have described, your mom would not be liable to Sears unless she was a signer on the original credit agreement. Just because it was in your father's name is not evidence that she did not sign the original agreement. I would not raise the issue unless Sears gets aggressive then you should demand a copy of the original credit agreement.

Make sense?