What will happen when my mother dies regarding her house, debt, and IRS monies owed?

[Xue]

Hi. I guess that this is a general talk question.

My mother is in very ill health, and she owes $80,000 on her credit card bills, $20,000 to the IRS, and still owes $38,000 on her mortgage with $98,000 in equity.

If she was to die, and I inherited her house, would I be liable for the credit card bills and IRS bill?

Right now, she is working with debt consolidators for the credit card monies owed, and right now there has been no Notice and Demand for Payment from the IRS or even a letter about the monies she owes the IRS.

Thanks.

[keepinitreal]

I believe if your mom pre-deceases you, her estate will be administered by someone she assigned to the duty in her will, or possibly an officer of the court.

The estate will pay off the liabilities with the assets. If there are assets left over, they'll be inherited by either what her will states, or by law. If there are only liabilities left, I don't believe anyone else is responsible for the estate's debts.

Give an attorney a call and find out what he/she says. Good luck!

[Xue]

Hi keepinitreal. Thank you very much for your posts and thoughts.

She was thinking about quitclaiming her house to my brother also.

[Flamingo]

Xue - do yourself and your family a favor and get a consultation with an elder care lawyer and also with an estate planning lawyer. Does your mother have a will? Take a copy of it with you when you visit with the lawyers. If your mother does not have a will, it would be to her and your family's best interests to have one drawn up and power of attorneys put into place.

When a person passes, the Executor/Executrix of the estate pays all outstanding bills from the estate funds. Unless things are set up a certain way as to particular property, the house will be sold and the proceeds used to pay bills. Go get those consultations...

[Xue]

Xue - do yourself and your family a favor and get a consultation with an elder care lawyer and also with an estate planning lawyer. Does your mother have a will? Take a copy of it with you when you visit with the lawyers. If your mother does not have a will, it would be to her and your family's best interests to have one drawn up and power of attorneys put into place.

When a person passes, the Executor/Executrix of the estate pays all outstanding bills from the estate funds. Unless things are set up a certain way as to particular property, the house will be sold and the proceeds used to pay bills. Go get those consultations...

Thank you very much. I will do that. I appreciate you for your advice.