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Deceased fathers credit card bills

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B

bdgibson

Junior Member
Texas. My father is recently deceased and we are now receiving his credit card bills in his estates name. Do we have to pay these out of the sale of his home?
 


N

nextwife

Senior Member
Decedants assets go FIRST to creditors.

The estates first duty is the pay the estate's creditors and tax debts. Whatever is left is what get's distributed to heirs..
 
A

anteater

Senior Member
Since the OP has not described the situation in much detail, I'll just toss out one (seemingly remote since the OP is talking about sale) possibility...

Homestead.
 
N

nextwife

Senior Member
Whose homestead? If my parent dies while owning a home, and I am an heir, I still pay their debts out of their estate (and have done so) whether it used to be their homestead when they were alive or not. It's obviously not NOW the owner's homestead.

They said it's HIS home, not their jointly owned home.
 
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A

anteater

Senior Member
The OP only vaguely refers to "we." I suspect that means adult children, which is why I referred to a "seemingly remote... possibility."

But, in Texas, there are circumstances in which the homestead can pass free and clear of the decedent's debts.

Sec. 270. LIABILITY OF HOMESTEAD FOR DEBTS. The homestead shall not be liable for the payment of any of the debts of the estate, except for:
(1) the purchase money thereof;
(2) the taxes due thereon;
(3) work and material used in constructing improvements thereon if the requirements of Section 50(a)(5), Article XVI, Texas Constitution, are met;
(4) an owelty of partition imposed against the entirety of the property by court order or by a written agreement of the parties to the partition, including a debt of one spouse in favor of the other spouse resulting from a division or an award of a family homestead in a divorce proceeding;
(5) the refinance of a lien against a homestead, including a federal tax lien resulting from the tax debt of both spouses, if the homestead is a family homestead, or from the tax debt of the decedent;
(6) an extension of credit on the homestead if the requirements of Section 50(a)(6), Article XVI, Texas Constitution, are met; or
(7) a reverse mortgage.

Sec. 271. EXEMPT PROPERTY TO BE SET APART. (a) Unless an affidavit is filed under Subsection (b) of this section, immediately after the inventory, appraisement, and list of claims have been approved, the court shall, by order, set apart:
(1) the homestead for the use and benefit of the surviving spouse and minor children; and
(2) all other property of the estate that is exempt from execution or forced sale by the constitution and laws of this state for the use and benefit of the surviving spouse and minor children and unmarried children remaining with the family of the deceased.
...
Click to expand...
 
H

HomeGuru

Senior Member
bdgibson said:
Texas. My father is recently deceased and we are now receiving his credit card bills in his estates name. Do we have to pay these out of the sale of his home?
Click to expand...
**A: no. You could pay it from cash or selling stocks, bonds or other assets.
 
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