Re: RonDoe/Mother's Death--No Will

[Dandy Don]

Re: RonDoe/Mother's Death--No Will

What is the name of your state? PENNSYLVANIA

RonDoe:

I tried to post a response to your query but was unable to get through.

The $50K goes directly to you as the named beneficiary (under the concept of rights of survivorship), and you can spend it any way you want. The money is NOT part of her estate since the money passed directly to you. If the estate has no other assets to be able to pay the outstanding debts, then the estate is bankrupt and that is what you should tell any creditors (including the hospital) who ask for payment of outstanding debts.

The ethical and honest thing for you to do would be to pay part of the hospital bill (perhaps 1/2 or 1/3 of it--but don't let the hospital know that you have access to the $50K or they might sue you for a larger payment) and then distribute the rest amongst your siblings.

DANDY DON ([email protected])

 

[RonDoe]

Mother's Death - No Will / PA - Process?

Dandy Don, thank you for your reply. I have a follow-up if you don't mind:

1. As part of the process, the hospital refered my mother's bills to a company called "RPM" in Chicago. RPM works on behalf of the hospital to solicit the U.S. Department of Human Services (DHS) for medical payment assistance. As part of the application, I listed all of my mothers accounts (today they are now mostly closed and in my name, but not at the time of this application).

So, both the hospital and DHS should be aware of the $50K in my mother's estate. We have not heard back from RPM as to the status of the application to DHS.

2. My mother was married at the time of her death. Her and her husband always kept all their finances separate, even to the point of filing individual tax returns.

As Paul Harvey would say, now that you know "the rest of the story" what would be your thoughts as to going forward? Also, since she was married, could her husband be liable for any of the hospital expenses? Thank you for your response; you've been very helpful. RonDoe.

 

[Dandy Don]

What type of medical payment assistance is she receiving: Medicare or Medicaid or something else? I am not familiar with DHS procedures and I don't know what they would do, but as far as I am concerned you are in the driver's seat and able to control what happens with this money since it technically became yours at the time of death.

They may know about the accounts but that doesn't mean that they necessarily know what the account balances are (unless they have contacted the banks, and even then the banks may be reluctant to give out information).

You can negotiate some type of settlement with them if you wish for a reduced amount, but if I were you I would try to keep at least $10K-$20K for yourself and the other heirs.

Perhaps a local attorney in your area experienced with Medicaid or Medicare (you can usually find one in the yellow pages) or a social worker can advise you on what happens or how to proceed.

 

[RonDoe]

RonDoe/Mother's Death-No Will

Thanks again Dandy Don. You have provided me sufficient guidance to be "dangerous." I will contact a local attorney for further assistance. Thanks again, you've been very helpful...RonDoe.

 

[Dandy Don]

Don't make any decisions about how to spend the money until you find out exactly what the hospital knows.

If they don't know about the $50,000, then you don't want to appear to be able to pay it off quickly. Take your time, about 2-3 months before you begin making payments on the account, perhaps $500-$1,000 per month, and in view of the outrageously exorbitant prices they charged for this billing, you may want to consider having the bill audited by a hospital/medical bill auditor to try to get any obvious overcharges reduced, or the hospital would probably try to negotiate a reduced amount with you (say for example $40-$50,000 instead of the full $60,000).