Elderly mom's credit card
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Anonymous
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My sweet 95 year old mom has lived with us for many years, and although she has some medical issues, is basically enjoying good health and is cognitively perfect. According to her will, her bank account (which is about $10,000) is Payable on Death to me. Her wishes are for me to use the money for her funeral, then disperse whatever is left over to my siblings and me. We greatly appreciate that she has saved her small social security income to pay for her funeral, especially since my siblings and I do not have the means to pay for it.
Mom also has a credit card bill that she has been slowly chipping away at. Hopefully she will be able to pay off the credit card before she passes. But what if she passes away and the credit card has not been paid off? After paying for her funeral from her bank account, instead of her children receiving the leftover funds, we could apply it to the credit card. But what if there is not enough in her account to pay the credit card in full? Unfortunately, my siblings and I do not have the financial means to pay it off. Should we encourage mom to pay off her credit card with her current funds? Then how do we pay for her funeral? Thank you so much for any thoughts or tips on this situation. |
Anonymous
| No one else owes a dead person's debt. |
Anonymous
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Having continue as she has been doing (btw, she won't be around to see her funeral - nothing about it will be a disappointment - to her)
For her funeral, it will be whatever it will be. It will be based on what money is available. No reason it needs to be a "certain" way. |
Anonymous
| The cc bill would be paid by money from the estate at death. Best for her to put the money towards prepaid funeral now so there won't be any in the estate. Lots of old people rack up cc bills knowing there won't be an estate to pay it. As long as not too crazy, like huge cash advances or vehicles, the cc will accept there is no estate. |
Anonymous
| you are not responsible for her credit card debt. Also- $10,000 probably won't cover the funeral, more like 15,000. |
Anonymous
| Cdo you have the right to take the cash for the funeral if it is already owed to the Credit card? |
Anonymous
| no. the credit card debt is forgiven. |
Anonymous
| She needs to use the $10,000 now to prepay for her funeral. |
Anonymous
| You all sound like salespeople for funeral homes. There are plenty of far less expensive options. And if the money's not there, you choose some least expensive option. !0K? 10K? not needed. |
Anonymous
| Never realized that... surprised more people do. It die with maxed visa bills. |
Anonymous
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Funeral costs from a year ago in Frederick area - 5K to funeral home (cremation). Additional costs included 1500 to a cemetery for a plot and opening the grave (optional cost since it was our choice to bury ashes) and grave marker and installation (2K). Then there were expenses for an obituary and memorial service.
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Anonymous
+1 |
Anonymous
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"Payable upon death" needs to be set up with the bank not via a will. If it is set up on the bank account, then the money is outside of the estate.
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Anonymous
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I'm no estate lawyer but I think she should gift you the $10,000 and you can later use it for her funeral.
Her credit card debit will not be recoverable by the cc company as long as her estate has nothing in it when she dies. |
Anonymous
| Green burials and cremation are less expensive. Is that something you can consider, OP? |