What do I do with my elder parents credit card debts? Do you pay their credit card bills? My father just passed away and my mother has been in the hospital for 4 months. I am not yet her guardian and am waiting on that as I am very timid of the whole process and my lawyer advised me to wait till I was ready. Since I normally paid my mothers bills online with her money I have just kept up that process so everything is being paid. She will need nursing home care and won't have the money for that and probably won't qualify for medicaid for awhile either. Her income is slightly higher than the medicaid threshold so I have zero clue how that will all work as I sure as heck am not paying for it. So I guess my question is, when your elder parent was needing extensive medical care were you keeping up with their CC bills too? I feel like just paying the essentials like house, utilities, insurance are important but no where have a I read what you all did with their debts? When you become a guardian do you have to keep up payments on the CC debts too?
Once those cards went delinquent my phone blew up. l had called his creditors from my cell phone so that's the number they had as a contact number. I was patient and told each of them again the situation but the calls became incessant. I finally told each and every one of them not to call me ever again. The calls slowed down but didn't stop. Once my dad died I called them all again to tell them he was dead and they all asked about my dad's "estate". I had to laugh at that. A couple of the creditors asked for a copy of the death certificate which I never sent and that was the end of it.
Don't take on your parents debts. Their creditors will try to get you to but don't ever do it. You're not legally obligated to and if you have to have any interaction with their creditors make sure you tell them to never call you because once they have your phone number that's a new contact number for them. Your dad has died and they can't get to your mom so they'll try to contact you repeatedly. Block their numbers from your phone.
If mother simply defaults on credit card debt, the companies may issue her a 1099-C, cancellation of debt. That is viewed as income by the IRS, has to be reported and may have taxes due on it, which makes this not a Do-It-Yourself project. It can affect Medicaid application, participation in income-based programs like meals on wheels, etc. Your lawyer should be one that is well-versed in elder law and MEDICAID. Don't just assume that they are - ask. If your father was a veteran, your mother may qualify for programs through the VA, again you won't know unless you ask. There are hospital social workers that can help you begin the process of deciding what the appropriate placement will be (not coming home to live with YOU), and how to access programs to help you make it happen. Take care of your own oxygen first in the process - otherwise you will never be able to help anyone else. Breathe.
Elder Care Attorney should be able to help with this. I recommend you continue to pay, at least the minimum, to keep these vultures off your doorstep. Setting up a PROPER trust with an APPROPRIATE trustee should NOT be seen as the wrong thing to do. IF there are assets and IF mom or dad applies for Medicaid, ALL assets are considered and Medicaid can suck those dry. There should be more concern about this than appointing an untrustworthy trustee, which goes against the very name "trustee". Dontask says "trust means you're gifting your money and assets to someone you a point as a trustee" - that is NOT what a trust is/or should be. We set up a trust for our mother - it is STILL her assests and it is for HER benefit while she is living. We three children are the "trustees" and we use it to pay for HER. We would be the beneficiaries of anything left after her demise, HOWEVER if the trustee is chosen wisely, no money should be taken or spent on the trustee's behalf UNLESS that person can prove the money was originally spent on behalf of the principal.
So, beware just ignoring debt thinking it will go away... have this handled with the help of an Elder Care attorney. Certainly YOU are not obligated to pay anyone else's debt, so NO, do not use your own assets to pay off anyone's debt!
the question is the legality of who owes. the child does not owe for the parents. if the parent is still alive and has the funds to repay - then yes, continue paying off the debts.
But if the companies are dunning the child of the parent because the parent cannot pay - this is not legal.
You actually admit this in your answer: "Your parent(s) 'borrowed' money with the agreement to repay the debt. They have a legal and moral obligation to hold up their end of the bargain."
THEY have a legal and moral obligation. THEY. Not YOU.
YOU have a choice. Not an obligation.
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