In the event of my dad's death, who is responsible for his credit card debt?
Question Details:
In the event of my dad's death, who is responsible for his credit card debt. He has no assets, except for his truck and some life insurance policies, with my brother listed has sole beneficiary. He also does not have a will stating his final wishes or what he wants anyone to receive. He is living with my brother who rents.
If credit account account is solely in his name with no one as guarantor, only his estate is liable to the credit card debt. If there is no will, usually a family member will petition the probate court to be appointed administrator. Probate assets are assets that are just in his name and will be liquidated to pay the creditors, but expenses for administration of the estate have priority and get paid first. This includes the administrators fees, filing fees, publication fees and attorneys' fees. The insurance policy is not part of the probate estate and the proceeds go directly to the beneficiary and are not subject to creditor's claims. When there is no will, no parents and no surviving spouse, the net probate assets pass to the siblings equally after the claims are paid. You are welcome to consult with me further on this at 978-561-1196.
You should speak with an attorney here in Massachusetts. Only the assets included in your father's probate estate will be subject to the claims of creditors. It might be a good idea for your father to prepare a will, if only to prevent difficulty between you and your brother in the event that something were to happen to your father.
Please feel free to contact my office if you would like to discuss this further. 617-357-4898.
If your dad doesn't leave a surviving spouse, nobody is liable for the debt. The truck will have to be sold, and if there's any money from that left over after the funeral is paid for, the creditors will get that (assuming his taxes are paid up, because the tax people always get paid first). If there's nothing left, or not enough for the credit cards, too bad for them. The insurance money will go directly to your brother, not into the estate.
It doesn't really sound as if your dad needs a will. When he passes, you or your brother can be appointed "administrator" (personal representative) of his estate, to take care of the paperwork.
Assuming there is no surviving spouse, then his estate may be liable. That means that any assets or money he left (not including the life insurance policy listing your brother as beneficiary) may be used to settle outstanding debt; e.g. the truck may be sold to pay creditors. Anything left over would go to his heirs, which would be you and your brother. (When there's no will, assets pass by intestate succession, or operation of law, generally to next of kin in order of closeness.) If there's not enough assets to pay the debts, you and your brother should not be responsible for them.
