• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

what to do about creditors and my moms estate?

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

spaceteacher

Junior Member
Hi - My mom died recently on January 6th, 2010. This is in California.

She has three outstanding debts to creditors. They are debts of $10,000, $8,000 and $1,000 respectively.

Our mom's estate includes an old car, a life insurance of $10,000 and a pension totalling possibly $20,000+. She did not own a house.

We want to avoid the creditors getting anything out of this. I've been told to send them all her death certificate, but am afraid to do anything.

I do understand that they can't go after anything beyond her estate, and I take comfort in that. However, again, my brother and I want to keep all of her estate.

Some people have told me that they likely won't go after it. But still, I'm afraid to do anything....

Any advice is welcomed.
 


justalayman

Senior Member
Just so I have this right, you want to scam the creditors out of what they are owed, correct?

Wow, what a guy. If these are legit debts your mother incurred, the creditors are due their money.

anyway, with that said:

if the life insurance has a beneficiary other than your mother or her estate, the insurance is not effected by probating the estate.


same thing for the pension

any asset, as far as I know, is subject to claim by the creditors. If the executor/administrator commits fraud in an attempt to hide the money from the creditors, that person could be held both civilly and possibly criminally for the actions.
 

spaceteacher

Junior Member
Thanks for the replies.

Her pension was through her work, and I'm not entirely sure what kind of pension it was. It was through the United Methodist Church if that helps any...she was a teacher. It did have my brother listed as the "beneficiary".

From what I gather then creditors cannot get the life insurance or the pension if me or my brother are the only ones listed as beneficiaries? However, they could lay claim to her vehicle because it's an asset?
 

justalayman

Senior Member
I would have to look for protected assets but barring some asset that is protected by law, anything else she owned is susceptible to being required to be sold to payoff the creditors.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top