Legal Question in Wills and Trusts in Wisconsin
Children of decedents responsiblity for past debt
Recently my mother-in-law passed away. My spouse and I have taken responsibility for final expenses, buriul, etc. Her assets totaled less than $10,000 and, in the state of Wisconsin, this means probate is forgone. Does this mean there is no estate as we have been informed? What responsibility, if any, do we, as the next of kin, have for re-paying any debts she accumulated before death? There was a small life insurance policy, which I have been informed is not truly her asset, but ours, was this information accurate?
2 Answers from Attorneys
Your Responsibility for your Mother-In-Law's Debts
This question is controlled by the law in your state. Because paying some bills may render you liable for other estate bills, you should consult an estate lawyer in your state before taking any action.
As to the insurancy policy, if you were the beneficiary, you may not be the owner. In some states, beneficiaries of insurance policies can be responsible for estate bills and be required to pay them out of the proceeds of the insurance. This is why you should consult an attorney.
Wisconsin Probate Issues
Your question may turn on WI law specifically and if so, you must discuss this issue with a WI lawyer. We are GA lawyers. In GA, based on your facts, you would be ok. The size of the estate would be too small for probate also. The life insurance is a contract. YOU MUST DETERMINE WHO IS THE BENEFICIARY!. If the policy was made out to her estate --which would be stupid at her age, then the $ is an asset of the estate. If the policy made you the beneficary, then the $ passed outside of her estate for this particular small estate. As to the $ you used to pay off her debts, that is pure WI law. In GA you may be held to be a mere volunteer and you do not get the $ back. You may make a claim as a creditor against her estate if there is any $, bacause you advanced priority 1 and 2 debts -- funeral expenses. Unless you open the estate and get appointed Executrix or Adminstratrix, you have no duty or responsiblity as next of kin to pay the creditors or debts of your late mother in law. At least, under GA law that is. However, many times people have signed or co-signed notes or promissory agreements they have forgotten about. Go check those. Hugh Wood
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