Need advice on what to do with credit card company when card holder passes away

[TRE Cup]

My Dad passed away early in january and did not leave mom with good financial security.
I need some legal advice on what approach to take with the credit card companies.
Some background
They owned a home and an apartment building. The current income from the building just makes the mortgages for both, with her social security taking care of personal expenses. If anything serious happens, she falls further into debt.
The life insurance settlement is about 70% of what is owed on the credit cards. Then there is the huge medical bills from his hospitalization and illness.
I have been told that it was not a good idea to sell the properties, as the profit realized (meant for her to live securely for the rest of her life) could be attached by the medical bills/collection agency

What have some of you experienced like this and how did you handle it?

Thanks in advance
Dave

[Oh Haha]

Sorry to hear of your loss, Dave.

My Dad passed 6 years ago and we went through something similar.

My mom was not on some of his cards so we sent them a death certificate and they closed the accounts. Yes, it took a few phone calls but it did happen.

If your folks were both listed on the cards she may be liable for the monies owed. Obviously, the laws in CA may be different than MI. I would start with a call to an attorney or financial advisor. We found one locally and he was able to help understand the obligations.

[Dueller]

CAVEAT: I'm not licensed in CA.

From a legal standpoint his estate, if solvent, is liable for the debts. Also note that life insurance is not usually part of his estate if the beneficiary was someone other than his estate. Mom may continue to be liable if she was on the CC agreement (not just signature authority but on the CC loan agreement). If not she's not personally liable.

However there are certain priorities (order of payment) that vary slightly from state to state. E.g., out of estate assets paid in this order: administrative costs to probate estate, last illness medical expenses, funeral expenses, secured debt, unsecured debt, rest to beneficiaries.

From a practical standpoint, if the amount of CC is small (say under $10K), I advise clients to send a certified copy of the death certificate and often CC companies will not pursue the debt and just write it off IF it was only in the deceased's name. And sometimes older folks got credit life as a condition for issuing the CC.

It doesn't sound like your dad's estate was that complicated...it would be worth a few hundred $$ to sit down with a young lawyer who won't charge you much to go over the specifics...it may be that an estate does not need to be opened. However with rental property as you described you might have to to get clear title. Go to the lawyers office with documentation: copies of deeds, mortgages, payoff amounts, CC accounts/balances, will, etc. If for no other reason to make sure your mother will not be put on the street.

Good luck and so sorry about your loss.

[TerryBPP]

In FL you can just submit a copy of the death certificate and the debit is absolved. Sometimes credit companies will even send the bill to the ex wife or kids house, but they are not liable for the debt, it just in hopes to trick someone into paying.

NOT A LAWYER BUT THIS HAPPENED TO A EX A FEW MONTHS AGO....IN FL.

[gr8fl4porsche]

Sorry about your father.

Can't help with the CC issue but I am curious about the healthcare bills.

Did your dad have insuranace, medicare, medicaid, etc.

I have been working on policies for my business, aging parents, siblings, spouse - so I am curious as to why there are large healthcare bills.

[TRE Cup]

Dad had a heart valve replaced at the beginning of July. Medicare approved the procedure for payment to hospital A. Subsequent to that he took a long time to recover and was released from the hospital in weak but happy condition to get home. Not even 48 hours passed and we had to rush him back to emergency (hospital B- his main group provider and much closer to the house) as he was not feeling well and much weaker.
After what seemed like forever with the hospital's tests, it turned out he had gotten a staph infection. From what was explained to us, it takes time to get the cultures tested so you fight with the right group of medicine. As these medications are so strong with bad side effects, you want to get it right. You just can't give a broad spectrum of medication. He had obviously contracted it in the hospital before he had left for home. So hospital B had him in ICU for almost a week , with problems there ( i rather not disclose all those details- but it had nothing to do with the valve; his heart was working pretty well). Transferred back to hospital A and then we spent days getting better, only to slide back with problems.

Finally he got out to a rehab center for about 10 days, then he was fed up with that and came home. We had home care that was partially covered, then that coverage ran out, so my sibs helped out to pay from then on.

We have submitted almost all the invoicing to medicare for review (thru the doctors billing us) and there is a subtantial amount left over that is due.

You can't believe the mountain of paperwork you get- its about 4 phone books thick compressed ! They must lose an entire forest's worth of paper per hospital, if not more.

Anyway, that 's about it. Thanks to all that can contribute with advice

[Noah930]

No advice, here. Just sorry for your loss, Dave.

[RWebb]

I'm sorry to hear it Dave.

It sounds like the estate is worth less than the bills. That happened when my father died also. I just told the cc co.s that he was dead and had left no estate. I then ignored future "bills" from them. Be sure you do not let them know your own phone number or address. A copy of the death certificate is not a bad idea.

The fact is that they write off bad debt all the time - that is one reason they charge such high rates.

Remember - time makes an excellent analgesic. Best wishes.

[rsNINESOOPER]

I feel your pain, my dad passed a year ago-

There is no better time to negotiate the credit card debt if you are in any position to pay a lump sum (depends on total debt in relation to liquid assets available). Even if you can get one debtor off your back its a plus in the long run. This approach had good results for us but everyones situation is different.

sorry for your loss and take care