If a deceased person has more debts than assets, are beneficiaries of the Will stuck with the debt?

Attorney Laura D. Heard explains Texas probate law on the situation of an estate with more debts than assets. What are the duties and responsibilities of the executor or beneficiaries of the Will towards the debts of a deceased person? (Disclaimer: As always, this is a general educational video, not legal advice for your particular situation. If you are in this situation, please consult with an attorney who can advise you on your particular facts and under current Texas law. Laws are different in different states.) #TexasProbatelaw. #wills #TexasEstateLaw. #TexasProbateLawyer. #LauraDHeardLawFirm.

[floobertuber]

Any creditor trying to get an executor to sign a contract accepting responsibility for the decedent's debts, is engaging in a predatory practice. SHAME ON THEM!

[radolfkalis]

My buddy's mom died years back, and he had several agencies contact him about her debts(thru USPS general mail, mailbox, not even certified), threatening him with legal action if he did not pay them. He was very worried. She died literally without a penny to her name. I asked him if he was cosigner on Amy of these debts, he said no. I told him the cannot do anything to him, he has no legal obligation, these are just vultures circling, don't even contact them.

[alancaron]

My father-in-law passed away with little savings. He had 2 life insurance policies for my wife and me. Creditors kept ‘hounding’ me for payments even after sending a death certificate and explaining he died broke and life insurance policies are exempt.

I contacted the Texas Attorney General’s office. They instructed the creditors to explain to them and to me why the debts weren’t dropped? Apologies came soon thereafter.

[Unholy_Holywarrior]

when my mother's creditors contacted me after she passed away, i told them "your deal and contract was with her, and it died with her". never heard from them again.

[elizabetholiviaclark]

My mom lived a rather frugal life, saving all the while, and left no more than a bill behind of around $200.00. As the executor, I paid it, not realizing I wasn't responsible. In this case, though, I'm not sorry. That's what she would have wanted me to do.

[Interstellarpinecone]

As far as I'm concerned, if someone dies, their debt dies with them. If you haven't cosigned, you're not responsible for your dead relatives' debt.

[gbinman]

I was executor for my stepson in Texas. He had $24k in credit card debt and an unpaid medical bill. His estate had the funds to pay the debts. On advice of council, I sent permissive notifications to the creditors. They went silent, and after 121 days the debts were banned. my advice, get an attorney. I would have otherwise paid the debts. The $1500 in attorney fees saved $24, 000.

[mnmx]

My mom died with $4.21 in her bank account. I made copies of the statement and sent it to all the ‘monthly’ bill collectors, gas, water, etc. plus a copy of her death certificate …. Done. Nobody asked for a part of the $4.21 … however I still got ‘bills’ which I ignored… lol

[RobertWGreaves]

When my mother in law passed there were bills from the hospital and she had health insurance. One doctor who provided care to her failed to sign the paperwork and subsequently left the hospital. The hospital was unable to submit the bill successfully to the insurance company and tried to negotiate with the insurance company for proper payment. The hospital never submitted the bill to the estate. 1 year after final distribution, the heirs received a claim from the hospital. We each wrote back to the attorney for the hospital basically saying we are not responsible for the Doctor’s failure to properly sign the forms. So if the insurance company cannot honor the invalid bill, we certainly cannot either as the required signature to validate the bill is missing. We never heard from the hospital again.

[donnaleeah]

Lolol when she said creditors i thought she said PREDATORS! I giggled. I wasn't really wrong.

[juststartingover]

It always amazed me that my mother, a widow, at age 90, living on social security of only a few hundred per month, kept getting credit card offers. She actually activated an offer and had a balance of a few hundred dollars. When she died she had no money, no assets. The credit card bill was ignored. We were not responsible for any debts she had.

[dna]

Depends on state! My cousin died June 7th of last year. Had over 250, 000 in hospital bills. My cousins wife was freaking out until we found out they couldn't make her pay all bills were wiped out.

[chucksdesk]

Interesting video, thanks. My wife’s sister passed and she was named executor. There was not enough money to probate the will and she didn’t want to deal with this headache so she declined to be executor. IRS sent bills which were forwarded to us. She (wife)told them she (sister) was deceased and sent death certificate to them and also told them there’s no executor. They kept sending letters to a dead person and one of them said my wife could not speak for her (dead person) unless she (dead person)gave them certified letter granting power of attorney. IRS apparently have not realized a dead person can not give power of attorney. Dead sister lived in San Antonio and we live in another state.

[MsSimpleMovies]

This was good information. ❤
You need to get a clearance document from IRS / CRA before distribution of funds, otherwise the Executor or/and the beneficiaries will be personally responsible to pay the debt.

[toscatattertail]

My mother died with $65K in credit card debt. My sister was executrix and she got a lawyer that explained that, the credit card companies kept raising Mom's credit limit even though she had not been making payments so we were not liable. Since there was no estate we didn't have to pay anything.

[jdelaney]

My brother passed in 2019. Debt collectors kept sending demand letters. They have given up and one of the same credit card companies he owed money to is now sending him credit card offers. Smh

[michaeltaylor]

The debt of the father is not of the son. My father's estate was so upside down, I walked away from it. I was threatened by one of his creditors and it ended badly for them. Always record all conversations when dealing with an estate, as it will save you a ton of heartache. Most of his creditors were professional when I informed them there was 'no estate', but the one had to be stupid.

[joefran]

My brother died some years ago. The cable company said his bill still need to pay his bill. My sister told them F off!

[tuzzday]

A friends mom died with about $70k in debt. There was no estate, no property - absolutely nothing. Trying to get the notices to stop was a nightmare. Friend started by sending all the mail back - writing on it deceased No $ No estate. There was so much that mail a rubberband was needed. This went on for over a year. The mom didn't even have a will, they just got friends address. It finally stopped. But for about 5 years every tax year the creditors would send a 1099 - M to friend. like someone deceased was going to be filing taxes. This is why they shouldn't give that kind of credit to someone in their 90's.

[bite-sizedshorts]

Another exception is real estate in NC. My mother died with no will and no assets other than a paid for house. There were three of us children. The title to the house passed to us the instant she died, thus technically never being part of the estate. She owed on a credit card, and collectors tried to get me to pay them, even cursing at me. I told them there were no assets to go toward debt and that the creditor was SOL.