Legal Question in Wills and Trusts in New York

Re: Responsibility for Unpaid Medical Bills

I'm sorry and I hope he is not in pain.

The life insurance proceeds cannot be reached by creditors.

The creditors can only get what your dad would be required to pay, namely, assets he owned in his own name. A statute exempts life insurance.

Re: Responsibility for Unpaid Medical Bills

Sorry for your misfortune. As long as noone in the family has personally guaranteed the payment of the bills, the creditors can only reach the personal assets. Any excess cannot be recovered from the life insurance. Be sure that noone assumes the responsibility to cover the bills, even if this leads to his being removed from the hospital (which occasionally happens). Also, is anyone secondarily responsible for the credit card bills, by having been a signatory to opening the accounts. As long as all creditors have looked to your father only, there should be no exposure. If there are bills after his demise, advise them of the limited assets and how the bills were paid using those assets. First creditor to sue and recover is entitled to the payment, to the exclusion of the other creditors.

Re: Responsibility for Unpaid Medical Bills

No, they cannot sue the heirs.

Verify that the life insurance is payable

to a "Named Beneficiary" namely yourself

and your sibling

Transfer the car to joint names, namely,

your parent and yourself, "as joint tenants

with rights of survivorship"

Transfer all other bank accounts or assets

to the same designation "as joint tenants

with rights of survivorship"

this will eliminate probate, and the creditors

will have nothing left to sue.