Legal Question in Credit and Debt Law in New Jersey

Re: After one Dies

Children are not responsible to pay the debts of a deceased parent from their own personal funds. If your mother had money in her estate, the debts would be paid from that. Some money might pass outside of a probate estate (e.g., insurance and joint bank accounts may qualify). If your mother's assets were substantial enough to warrant attention, you should consult a lawyer who handles estates. On the other hand, if you know that there is not enough money in your mother's estate to pay debts, don't feel obligated to do anything. Just return any bills with a note that she is deceased. Don't be intimidated by any bill collectors trying to collect from you. That might happen, but you are not obligated to pay anything.

Use a little caution with any money or property that there might be in the estate. It is okay to pay the expenses of her funeral and last illness from this because those expenses always come first. Keep track of any property that has commercial value because it may be necessary to account for it at a later time.

See also: http://info.corbettlaw.net/lawguru.htm

Re: After one Dies

The estate is still responsible for the debt. The question becomes, is there an estate? I suggest you see an estate planning attorney to hammer out all of the issues that you have.