Legal Question in Wills and Trusts in Massachusetts

Re: deceased mother's credit card debt and mortgage

As to the house, you own it subject to the mortgage. This means you need to pay it or refinance it. The deed I assume was recorded prior to your mother's death, if not there may be a problem.

With respect to the insurance and 401k, those are part of her estate for tax purposes but not probate.

there are some things you can do to protect those assets from the credit card company.

I suggest you contact an attorney ASAP to get some guidance on how to handle these assets and your mother's debts.

Re: deceased mother's credit card debt and mortgage

The estates includes all assets which pass from the decedent, whether or not they go through probate.

Under Massachusetts law, a creditor has one year from the date of death to file suit against a decedent's estate. If there were any assets which went through probate, the creditor would know who was in charge of the estate. From what you're describing, all the assets went to you outside of probate. So, if you don't file for probate or administration of the estate, the creditor can, and then start looking for other estate assets to show that the estate isn't insolvent.

Now, if nothing happens in a year's time, the creditor is out of luck. But what if you're not so lucky? You have to decide if you want to risk legal action being taken against you -- and whether the cost of defending yourself will be more than the $10,000 owed.

As a practical matter, if you don't pay the mortgage, the lender WILL foreclose on the house -- and your credit may be seriously affected for years to come. I suspect the house is worth a lot more than $20,000, and your mortgage payment is a lot less then rent.

Please feel free to contact me if you would like to review this situation in more depth and discuss other issues (such as tax matters) which may arise here.