Legal Question in Credit and Debt Law in North Carolina

A living will is not a will. It is a directive to one's healthcare provider that one does not wish to be kept alive on a machine.

A power of attorney and living will both end at death. The question is, did your grandfather have a written will? Where did he reside? In North Carolina or out of state?

If your grandfather had a written will, who is appointed as the executor? Your mother? If there was no will, was your grandfather's wife still alive? If not, was your mother the only child? If so, she can apply to be the personal representative of your grandfather's estate. If this is in North Carolina, she can go to the clerk of the court of the probate court in the county where your grandfather lived. It would be a good idea for her to make an appointment. The clerk has the necessary forms and can explain the general estate process to her. If there was no will and there are other siblings of your mother, then they will have to consent to your mother being the personal representative.

You ask if your mother is obligated to pay the remaining bills. Your mother is not personally liable for your grandfather's debts unless your mother signed something and agreed to be personally responsible. Your grandfather's estate is responsible for your grandfather's debts. If there is enough money to go around, then all valid debts/claims are paid before anyone inherits assets. If there is not enough money, then valid claims/debts are paid in order of priority. Priority in general is in this order:

(1) administrative expenses, like probate fees, commissions to the personal representative (executor or administrator, legal fees etc.);

(2) funeral expenses up to $2500; $850 for a grave marker;

(3) taxes owed to the federal or state governments;

(4) Medicaid liens/reimbursement;

(5) medical expenses incurred in the last 12 months of his death; and

(6) everything else.

You ask if debt collectors will seize any of your grandfather's property. I don't know what assets your grandfather had. Debt collectors must file claims with the estate if the estate is probated before they are paid anything.

The creditors don't want personal property (clothes, pots an pans, etc.) Cars, land and similar things of value may have to be sold and the money put into the estate and used to pay the claims.

Bottom line is that the heirs cannot keep the assets and not pay valid claims. That said, if there are no assets, probate may not even be necessary (like where your grandfather was on Medicare/medicaid, his only asset was a Social Security check and he had no house, land, car or bank account and lived in a nursing home). That is why a meeting with the clerk is important. If there are no assets to justify probate, the clerk will say so. In such case, if there are debts, then the executor or your mother can write a letter to the creditors and tell them your grandfather has died, that he has no assets, that no estate will be opened as probate is not warranted and that your mother is not responsible for your grandfather's debts. Include a copy of the death certificate.

If your grandfather lived in NC and had some assets justifying probate, then your mother, if she is the personal representative, should obtain a probate attorney in the county where your grandfather resided prior to his death. If, after speaking with the clerk, your mother learns that probate is not justified, then she should write letters as I outlined above. If she wants to retain me, I can assist her in dealing with the creditors for a reasonable fee. Have her contact me at rachelforjustice.com. If that is not convenient, then email me her name and telephone number and I can contact her if she is interested.