Dear Quentin,
Can you please help me? I can’t afford a lawyer. My mother passed away in May from Alzheimer’s disease. I was her primary caregiver. In 2015, my mother created a power of attorney, a health care directive, and a trust. She left me her house in Fresno, California, which was not paid off.
She had six credit cards that she paid off; however, they still owed $17,000 when she died. The creditors call and ask if I have a court date. I said no. I don’t even know what that means. Can they force me to sell my mother’s house to pay the creditors?
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Who initiates the court date? Am I responsible for paying her credit cards? I want the phone calls and letters to stop. I also want to avoid having to go to court. I would appreciate your much needed advice.
The daughter
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Dear daughter,
Don’t tell your mother’s creditors.
It’s unlikely that these credit card companies will try to put a lien on your mother’s house for a few thousand dollars, since this $17,000 debt is split between several companies. These creditors may do their best to overwhelm you with phone calls and letters, hoping that you will pay them what your mother owes them, given your vulnerable condition. It’s unclear if there’s even enough money in your mother’s estate to pay them off.
If your mother has significant assets – i.e. money in her bank and retirement accounts, etc. – you should be able to afford an attorney from the estate. A trust and estate attorney can tell you whether you should file a probate case. In California, you will likely need to file a probate if the estate is worth more than $184,500. That includes any assets that are not held in trust or transferred directly to you after your mother’s death.
“A money judgment is no longer enforceable upon the death of the debtor except through probate and the creditor’s claims process,” says the Law Offices of Ronald P. Slates. An exception to this is a lien secured against specific real estate, which does not require a claim from a creditor if the creditor waives recovery against all other estate assets. In other words? This is pretty much all you have left before that judgment becomes a worthless piece of paper.
Your mother clearly made preparations for her estate after her death. She has set up a trust; if that trust were to become irrevocable after her death, it should be beyond the reach of creditors. The same goes for assets, such as bank accounts and life insurance policies, that were transferred to you upon her death. If the estate is large enough for probate and there is no will, the court will appoint an administrator if you do not want or cannot manage the estate.
The clock is ticking for these creditors, and they know it. “When a homeowner dies, there is a strict one-year statute of limitations to sue them or pursue a lawsuit against their estate,” according to Tinnelly Law Group in San Juan Capistrano, California. of restrictions would have been longer if the person had survived.” You need to focus on settling your mother’s estate and paying her property taxes and utilities.
The Federal Trade Commission also has strict rules for debt collectors. One of these rules: they can’t contact you before 8am or after 9pm (unless you agree). You can also tell them not to contact you via email or text message. “Under the law, family members generally do not have to pay the debts of a deceased relative with their own money,” the FTC says. “If there is not enough money in the estate to cover the debt, it usually remains unpaid.”
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More columns from Quentin Fottrell:
I give my mother’s sick neighbor $500 a month. She agreed to sell me her house, although she will continue to live there. Is this a good plan?
“We’re Happily Married, Mediocre Gay Men”: We’re 58, make $160,000 and have saved $2.2 million. We grew up poor. Our families treat us like ATMs. Are we okay?
‘I’m tired of dating losers’: Are single Americans looking for love online – or money? The difference is difficult to see.
