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scocpm
Level 2

Ty

 
1 Best answer

Accepted Solutions
tagteam
Level 15

Ty


@scocpm wrote:

Am I responsible to pay off this credit card? Can I be held liable? 


I am very sorry for your loss but, as executor, you are responsible for marshalling her assets, settling her debts, and distributing property in accordance with her will (or court order).

 

If she owned property (assets), then you need to exercise caution and settle her debts from any cash in any accounts or proceeds from the sale of property. 

 

 You might want to read through Publication 559 for your own edification.

 

See https://www.irs.gov/publications/p559#en_US_2021_publink100099488

 

 

It also might be wise to consult with local legal counsel.

 

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11 Replies
tagteam
Level 15

Ty


@scocpm wrote:

Am I responsible to pay off this credit card? Can I be held liable? 


I am very sorry for your loss but, as executor, you are responsible for marshalling her assets, settling her debts, and distributing property in accordance with her will (or court order).

 

If she owned property (assets), then you need to exercise caution and settle her debts from any cash in any accounts or proceeds from the sale of property. 

 

 You might want to read through Publication 559 for your own edification.

 

See https://www.irs.gov/publications/p559#en_US_2021_publink100099488

 

 

It also might be wise to consult with local legal counsel.

 

DoninGA
Level 15

Ty

You should be filing an Estate Tax Return, Form 1041.  The estate pays any debts of the decedent. 

NCperson
Level 15

Ty

@scocpm - Yes, as the executor, you are responsible for paying off the debts of the estate. That is the role of the executor - making sure all the debts are paid to creditors and what assets remain are distributed to the beneficiaries in accordance with the will.

 

The estate is liable for that credit card debt.  If as the executor, you distribute the assets of the estate to you, as the beneficiary, without paying off the debts of the estate, you do have liability as you would not have carried out the responsibilities of the executor under the law.

 

I bet if you read the will closely, it will state that it expects you as the executor to pay all creditors.

 

why would you not want to pay that credit card debt?   

 

 

Mike9241
Level 15

Ty

this is a legal, not a tax question but as @tagteam stated it's your responsibility as executor. 

fanfare
Level 15

Ty

how did your mom pay the property tax and utilities on this home, not to mention normal cost of living.

There must be some money and you have to pay off all debts.

scocpm
Level 2

Ty

We helped out paying her bills she was on a fixed income and social security was so small and when prices took off we had to contribute even more. Thank you for your feedback

fanfare
Level 15

Ty

If you inform the credit card company the holder is deceased, they will probably write it off.

So I'd try that first.

@scocpm 

scocpm
Level 2

Ty

Thank you I will do that

NCperson
Level 15

Ty

@scocpm   but on the otherhand "doing the right thing" would be to pay the debt.  That is the moral and legal obligation.  Think about it. 

 

@fanfare

SweetieJean
Level 15

Ty

This is an income tax forum, so you might wish to seek local Probate/legal advice instead.

tagteam
Level 15

Ty


@fanfare wrote:

If you inform the credit card company the holder is deceased, they will probably write it off.


Depending upon the amount, they are probably more likely to file a claim against the estate and, first, will inquire as to whether the decedent left any assets.

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