My Dad

[Ricardus]

I was executor for my mothers estate when she passed almost 20 years ago.... The good news is she died before she ran out of money, the bad news is she died RIP.

Hint, we all die. Love all you can while still breathing...

JR

I didn't mean to make it sound like it was about me, and all I wanted was a cashout. Right now we're not even sure about money for funeral expenses. That's how bad things were in his estate.

I was his live-in caregiver, but he never talked about his finances with me. From where I sit now, it looks like he took out another mortgage on the house and added some debt to it, in order to get one payment, and to get the payment manageable. I think his only plan was to be able to afford to live and meet his bills until he checked out.

 

[JohnRoberts]

I didn't mean to make it sound like it was about me, and all I wanted was a cashout. Right now we're not even sure about money for funeral expenses. That's how bad things were in his estate.

I was his live-in caregiver, but he never talked about his finances with me. From where I sit now, it looks like he took out another mortgage on the house and added some debt to it, in order to get one payment, and to get the payment manageable. I think his only plan was to be able to afford to live and meet his bills until he checked out.

Not uncommon to refinance mortgages when interest rates are falling to lock in lower rates, now interest rates are rising. Some homeowners with significant equity secure a reverse mortgage which involves forfeiting the house upon death. Back during the crazy housing bubble, bankers were giving out home equity loans with little justification.

Have you found his stash of important papers? Some old people have multiple bank accounts or whatever. The old saying that all you have to do is pay taxes and die, still holds, the IRS will expect a final tax return.

Look out for auto-pay recurring expenses, if he had a credit card, maybe cancel it.

Good luck.

JR

 

[user 37518]

I didn't mean to make it sound like it was about me, and all I wanted was a cashout. Right now we're not even sure about money for funeral expenses. That's how bad things were in his estate.

I was his live-in caregiver, but he never talked about his finances with me. From where I sit now, it looks like he took out another mortgage on the house and added some debt to it, in order to get one payment, and to get the payment manageable. I think his only plan was to be able to afford to live and meet his bills until he checked out.

I am terribly sorry for your situation, I really pray and hope everything turns out well. Someway or the other you'll cover the funeral costs, hopefully without getting into too much debt. God bless

 

[Ricardus]

Have you found his stash of important papers? Some old people have multiple bank accounts or whatever. The old saying that all you have to do is pay taxes and die, still holds, the IRS will expect a final tax return.

Look out for auto-pay recurring expenses, if he had a credit card, maybe cancel it.

Good luck.

JR

Sherlock Holmes could not have searched the house better than we did these past few days. We didn't find much.

 

[user 37518]

Sherlock Holmes could not have searched the house better than we did these past few days. We didn't find much.

How does debt works in the US? In Mexico, when some owes a mortgage or credit card debt and so, and he/she dies, the debt is forgiven.

 

[JohnRoberts]

How does debt works in the US? In Mexico, when some owes a mortgage or credit card debt and so, and he/she dies, the debt is forgiven.

That can be negotiated in a mortgage ahead of time but forgiveness is not automatic AFAIK. If anything there might be life insurance clauses or add-ons. WRT CC debt its hard to get blood from a corpse. In Mexico does the family get to keep the house and property just because the head of the household dies? In the US I think people buy life insurance to take care of the wife and family (and debt) after dying.
==
Several years ago I made a personal loan to a neighbor I was friendly with, it was for buying a used truck, that he didn't really need but he wanted wheels. He was almost exactly 20 years older than me and I hoped a 5 year installment loan might motivate him to keep going several years longer. It didn't work and he died with over a year to go on the loan. His widow was prepared to honor the note balance but I told her never mind and tore it up.

JR

PS: I get credit card collection notices for somebody with the same last name about once every year. Some aggressive collection agency either thinks its a relative, or thinks that I might ASSume its a relative and pay it... I don't.

 

[user 37518]

In Mexico does the family get to keep the house and property just because the head of the household dies? In the US I think people buy life insurance to take care of the wife and family (and debt) after dying.

Yes, the family gets to keep the house if it has a mortgage, however, I believe that when you apply for a mortgage, part of the interests you end up paying include an insurance policy for the bank, so the family gets to keep the property and the bank collects the insurance.

With regards to CC, I'm no expert but a lawyer once told me that CC debt is a "civil debt" whatever that means, the point is that if for example you stop paying, the bank can only take away assets under your name but the bank can't even take you to court, for instance if you don't pay and your assets are under your wife's name or your children, the only resource the bank has to collect their money is to harass you over the phone or in person, but that's basically it, if you don't pay that's the end of it and there are no legal consequences, at least no serious ones. Of course, your credit score will disappear and you won't be able to ask for a loan again.

If you die with CC debt, the debt dies with you.

 

[Ricardus]

Thank you for answering everyone, because I'm learning as I go here.