Legal Question in Wills and Trusts in Washington
Mom & Dad's credit card debt
My dad passed away 2 yrs ago, my mom passed away last month.
They owed apprx $30,000. in credit card debt. They were buying a mobile home on 1/4 acre of which they have quit claimed to me. The existing balance owed on the mobile is $31,000. Mom stated in her simple will that the mobile home goes to me and signed a notorized quit claim deed, as well as a Power of Attorney.
The credit card collectors are calling every day.
My question is: can the credit card companies take the outstanding amounts owed from the ''estate''? Aren't they considered unsecured loans, and therefore not the responsibility of the estate to pay them?
1 Answer from Attorneys
Re: Mom & Dad's credit card debt
While the debt is unsecured, the estate must pay all debts of the deceased. An unsecured debt just means that there is no security (such as a deed of trust or lien). The deceased's debts must be paid before any beneficiary takes any asset. If the mobile home is the only asset, it must be sold and the proceeds used to pay off all the debtors, if there is anything left over, the beneficiaries may take that.
Since there is real estate involved, you must go through probate. The deceased does not quit claim the property to you, the personal representative of the estate (also called an executor) has a fiduciary duty to find all the debt, pay all the debt and then distribute what ever is left over. It sounds like you need to obtain legal counsel for this. I would be happy to help you and can offer you a 10% discount if you mention that you are calling from this email.
I look forward to hearing from you.
Caroline R. Suissa
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