Legal Question in Wills and Trusts in North Carolina

Yes and no. The heirs are not privileged to keep property (money, etc.) from the estate and not pay creditors.

Creditors are paid in order of priority if there is not enough money to go around. And funeral expenses in NC are only allotted $2500 as a priority (assuming that your mother lived in NC at the time of her death and we are dealing with an NC estate).

Further, only medical expenses incurred within the last 12 months of death are given a priority. You do not indicate if there are any Medicaid issues - if there are, Medicaid is mandated by law to seek recovery.

I also do not know if you or your sister agreed to be financially responsible for the bills. They are usually the responsibility of your mother's estate, but if you or your sister agreed, then you might be liable.

What I suggest is that you seek out a probate lawyer in the county/state where your mother resided at the time of her death and hire the lawyer to assist you in resolving the estate and paying claims properly.