• 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.

Father died with Credit card debt. house, car & insurance

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

ssmith43054

Junior Member
What is the name of your state (only U.S. law)?
Ohio

My father died 2 weeks ago with CC debt. Approx $16k. May have medical debt of another $4k (20k total). I will be appointed administrator of the estate and have just started learning about probate

He had a house (no mortgage) worth $60k (needs $4k or work). Deed in his name only.
Had joint bank acct with me worth ~$9k after funeral exps (non probate asset in Ohio as i understand). technically mine now but i would share with sister
Owns two cars. One worth $2500 one worth ~$300 (sister needs a car bad and was driving his last 4 mos)

Had insurance policies worth about $16k. My sister and I are 50/50 beneficiaries (no other children). (non probate asset im told)

Trying to decide among several options. I would like to avoid selling the house as my sister was living with Dad since Mom died in 2007. She has been under employed/struggled to keep employment due to a major illness borderline disability. Likely has bad credit and needs money. (dad was providing substantial support to her in past 7 yrs which is where the debt probably came from)

I am not passionate about the house and would sell just as soon as keep. but it is in a 'marginal' neighborhood but with not much sales activity and a few boarded up houses/foreclosures in the development so selling will take a while.

Also would love to negotiate a lower amount due with creditors but not sure this is viable as they will likely see house w/o mortg and will want their pound of flesh.

Options
1) Sell the house , take proceeds and pay creditors. split leftovers 50/50 with sis.
2) Keep house, liquidate insurance policies, and joint bank account of $9k and pay creditors.
3) Try to put a second mortgage on house to pay creditors.
4) find a way to buy house in my name (i could take it on) and rent house. split rental income with sister> i live about 4 miles from the house.

I am married and feel like option #1 would be best for my wife and family. but Option #2 will be likely sister's position as she has need due to her health situation and cash flow housing needs.

I have excellent credit (mid 700's) and i know I would have to pay any new mortgage.

Any thoughts on how to proceed, considering tax ramifications, and subjective factors?

What is the name of your state (only U.S. law)? Ohio
 


Kiawah

Senior Member
Didn't see a legal question for the lawyers, but opt#1 puts investment money in your pocket for future college education. You'll probably get a much better ROI on that investment, than keeping the house so sis can use, and you can continue to pump money into it for taxes, insurance, and repairs. Unless she's willing to buy out your share with a formal loan, I'd sell it.
 

ssmith43054

Junior Member
i agree, this is not so much a legal question than it is a practical one.

I also now know formally that Sis has a strong emotional attachment to the house. Described our options and i know she would like to stay in the house. But i also wonder if she can afford to keep it. also i know that every time something happens in it, i will get the call..she is used to renting and having a land lord to response to every squeak and leak.
 

Find the Right Lawyer for Your Legal Issue!

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