Legal Question in Wills and Trusts in New York
Credit Card Interest
As the administrator of my mother's estate I've been paying the bills (mortgage, utilities, credit cards) until her home is sold and all creditors can be paid in full.
I recently became aware that interest on credit cards ceases to accrue upon death. Of course, I haven't used those credit cards, have only been making the monthly payments on them. When I contact the credit card companies to inform them that my mother died last October, then should I expect the interest to stop accruing as of this date, or to be retroactive back to the date of her death?
1 Answer from Attorneys
Re: Credit Card Interest
I do not know why you have been paying the bills personally, rather than have notified the credit card company right from the outset of your mom's death. I suggest you contact the company, advise them of your position as administrator and explain the need for time to liquidate the house to pay them off. Of course, speak to someone in authority, not just customer service. Most cards will work something out, like freezing the account and reducing interest charges. Be sure the card(s) are canceled, you get your arrangements in writing from them, and do not personally guaranty the payment. Of course, all funds you are "advancing" are reimbursible from the estate, once assets are liquidated. You might even suggest, since the timing of sale is unknown and presuming you have the ability to do it, offering a reduced, lump-sum payment, to settle the account now.
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