Legal Question in Wills and Trusts in Florida
financial obligation for deceased parent w/no will & nothing to consider an esta
Our father passed away without a will. He has about $5,000 in credit card debt and a car that he owes $10,000. He may also have some unpaid hospital bills. He was renting an apartment so he has no property to his name. He had 2 life insurance policies which will be divided up amongst his 4 children. Are we as his children responsible for paying off any of his debt and his car loan with the life insurance money? Could they (creditors) come after us for that life insurance money? What's the best way to handle his creditors?
2 Answers from Attorneys
Re: financial obligation for deceased parent w/no will & nothing to consider an
If the insurance proceeds are payable directly to the children, and not his estate, the children are not liable for any of the debts of the estate.
Just tell the creditors that your father's estate has no assets. The car will be repo'd.
Re: financial obligation for deceased parent w/no will & nothing to consider an
You are not liable for a debt that you did not sign for or create. Therefore, do not sign anything agreeing to take on his debt. Write to the creditors and tell them he is deceased, his estate is insolvent, and that you do not intend to open a proceeding in probate court. Life insurance payable to you is not his money and not available to creditors. The creditors should take their collateral (the car), and write off the rest of the debts.
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