When you are dealing with illness and grief the chances are that you may not be able to pull together what to do when your husband, wife, parent or sibling dies. You might look for a Will or the location of bank accounts but decisions likely pass in a blur. This column is to help you when tragic events happen so that you know what to look for and what to do.
If you are dealing with an insolvent estate, the State where your loved one resided at death lists an order of distribution in which bills are to be paid. If you belong to the LGBTQ community, then it is best to consult LGBTQ family lawyers in Gosford who will listen to your concerns, represent your interest, and help you out in the situation. In Pennsylvania at the very top are costs of administration such as filing fees, Executor’s fee and attorney’s fee and payment of funeral bills. Do not pay credit card bills first if you do not think there is enough in the estate to pay all bills. In Pennsylvania, medical bills, including payments from Medicaid for medical care incurred within six months of the person’s death are given higher priority than older medical bills. Credit card bills are unsecured debt and are on the bottom of the pile.
If there is secured debt, such as a loan on a car, the creditor could take the vehicle.
Usually other people do not owe on the decedent’s debts but there are exceptions. Although collection agencies may call following the death of a loved one, they are often not attuned to who owes what and under what conditions nor do they often care so if you are unsure of your rights check with an attorney or someone who knows the rules.
There are people who can be accountable on a decedent’s debts. If you cosigned a loan or guaranteed payment on a debt, you might be held accountable. A spouse, under the doctrine of “necessaries” might be found to owe for certain specific bills regarding support of a deceased husband or wife such as housing or care but not for other bills. Get help if you are unsure.
Pennsylvania has a “filial support” law that has been used to find children responsible for bills of “indigent” parents but this law has generally been applied only to long term care. Again, legal help should be sought if any claim for these bills is made.
Direct beneficiaries of life insurance policies and joint owners of property would generally not be responsible for the general debts of the estate.
Hope this helps. When there are many bills, proceed cautiously and know your rights and responsibilities.
Esquire, Colliton Law Associates, P.C. Janet Colliton has practiced law for over 38 years, 37 of them in Chester County, Pennsylvania, a suburb of Philadelphia. Her practice, Colliton Law Associates, PC, is limited to elder law, Medicaid, including advice, applications and appeals, and other benefits planning including Veterans benefits, life care and special needs planning, guardianships, retirement, and estate planning and administration.