Do we have to pay??

[te.smith]

What is the name of your state?KS
Recently my mother in law was in the hospital and we had to pay her bills. We found out that she owes a LARGE amount to credit cards. We talked to her about it and she replied that she was not worried because she has no assets so when something happens to her - there is nothing to collect. Three years ago she put her farm and house into our names. We are all wondering????? Is she correct or are we(the kids) going to be responsible for ALL this debt upon her death??

[Debt Guy]

You are not responsbile for your mother's credit card debts.

Unless someone co-signed with her, she is solely responsible. Upon her death, her estate is responsible. If she really transferred her real estate assets 3 years ago, unsecured creditors would not have a claim on those assets.

However, any cash, bank accounts, stock, household furnishings, clothing, etc. that she owns would be part of her estate. The executor of her estate would be obligated to liquidate those assets to pay her bills and then distribute the remainder to her heirs according to her will or state law if she does not have a will.

Finally, if she has a life insurance policy, the proceeds of that policy goes to the named beneficiary. Life insurance proceeds would not be a part of her estate.

Make sense?