who pays the debt?

[ialocin2324]

What is the name of your state?What is the name of your state? wi
heres the deal. my sister died of cancer, and due to her 2 year battle, she basically has nothing left to her name. only a car valued at $5000, that is in both her and my fathers name. however, she does have around $4000 in credit card debt. she left her IRA's and life insurance policy to me and my brother. my question is: who, if anyone, is responsible for paying off her debt? she wasnt married, and had no children. one of her CC bills, had my mother as a co-signer, so im sure that bill must be paid. but are we responsible for paying off other CC debt? and if it is not paid, i would only assume they would come after her car, right?

 

[ALawyer]

First my condolences on your loss. While I am not certain of this, and her state may have certain unique wrinkles in its law, the general rule is her estate assets must be used to pay off her final expenses, expenses of administration, and then claims of creditors -- before assets can be distributed to heirs.

The life insurance is likely NOT part of her probate estate and it may be argued it had had no value prior her death so that named beneficiaries can likely keep it. I am NOT sure about the IRA as those were her assets during her lifetimef creditors, and IRA assets are not immune from claims of creditors in most states, although 401(k) assets are.

Depending on how the car was titled -- and the exact facts control -- the car is either part of her estate or went by operation of law to your father at her death.

As far as I know (and I am NOT a WI lawyer) te creditors would likely recover only after the assets in her name are sufficient to to pay off the debts. Just because you are family does not mean you must pay the debts.

This is one to retain a local lawyer to help you on; the few hundred dollars you'll pay will give you many thousands in peace of mind.



Your mother is liable on the credit card only because she co-signed.