Legal Question in Wills and Trusts in New Jersey

Re: Who is responsible for Mom's debt?

The estate is responsible for the debts. You can't simply ignore them and transfer assets to heirs without paying your mother's debts. If assets are transferred to heirs, the creditors can sue the heris for payment on the debt.

Re: Who is responsible for Mom's debt?

The credit card debt and the mortgage are debt of the estate and must be paid with the assets of the estate. The assets of the estate include the bank accounts, as well as the house.

You cannot simply transfer title to the house from your mother's name to your sibling's name. You must Administer the estate through your local surrogates/probate court. The process of Administering an estate includes settling all debts of the estate before distributing the assets of the estate to the family and/or beneficiaries.

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Re: Who is responsible for Mom's debt?

I concur with the others who replied. All debts are debts of the estate. Even in an intestacy (dying without a Will) an estate administration must take place so someone can be responsible for paying the debts and transferring the assets after the debts are paid. If the cash is not sufficient to pay all debts, and creditors sue, the lien from the suit will attach to the house. Likewise, the mortgage on the house must also be paid. Plus, the mortgage must be renegotiated with the bank, unless it states it can be assumed by a new owner (the children who inherit). You cannot just transfer the assets and avoid paying the debts. This would be considered a fraud on the creditors, entitling them to trace the assets and sue those to whom the assets were transferred.