Are people with Alzheimer's responsible for credit card debt?

I'm in a mess with my mother's debts as she's on Medicaid and currently resides in a nursing facility. She was unable to pay her outstanding debts and low and behold, 2 judgments were placed on our property (the house is in my name with mom listed as Life Estate of the house). I've paid large attorney fees to get this resolved, but to date, it still hasn't as I ran out of money. I don't know if I should wait it out until mom passes (she is 91) and her name is taken off the house and hopefully, the judments removed. What a mess!

KZ

Could your Mom file for bankruptcy? My mother-in -law did and was able to keep her home and car.

KZ:

Are the credit cards "unsecured" or did she put the house as collateral? If it's unsecured, she can file for bankruptcy and keep her home (and be credit-less for 7 years). You might want to file yourself or find someone in one of those community papers at train and/or bus stations who won't charge an arm and a leg.

-- ED

I believe the credit cards are "unsecured". The home is actually under my name and she is just listed as life estate of the house meaning she has a place to live if she ever left the nursing which is never going to happen. Bankruptcy was an option; however, I don't think she can file for it since she is a Medicaid recipient. I'm hoping after mom passes, her name will come off the deed and then the judgments will be removed. I can only wish!

KZ

A debt does not gp away when she dies-my husband's debts are now owned by me even though other widows do not have to pay off credit cards in their late husbands name I got in trouble by just asking if I was responsible and agreed to continue paying it off and had to pay the balance at once just for asking the question-so if her debts are yours now they will still be yours when she dies.

So what happens to credit card debt after death? My mother has no property, no estate. In fact, when her Social Security starts going towards Hospice care, there will be no money to pay her bills before she passes. I have researched and can't find out any answers.

This is both a financial and legal question. I am not being sarcastic, but I would write to Suze Orman. You need professional advice from someone that is not going to put YOU into debt. Good Luck.

SCOTT FREE - I think many of the persons responding are wrong. Kids or spouses are not responsible for a parent or spouses debts. When they pass away, the debt goes "poof."

The only exceptions to this are when contracts and purchases were done in both person's names. Or for example, if you co-sign something as a guarantor. If the credit card is in only one spouse's name, any debts on it, are to that person only.

Collection agencies WILL tell you that as a spouse or child you have a moral obligation to pay off the debt. That is up to each person to decide however. Legally, the debt a person takes on, goes with them to the grave. If it were any other way, we'd go back to serfdom and family debt thru the generations!

ABOUT ALZHEIMER'S - When I realized that my dad couldn't handle paying bills anymore, and when I had him sign the checks and by the third check he asked me, "Hey, I can't remember how to sign my name," it was time to transition.

When he knew that I was taking care of the bills, he let it go pretty easily.

Legally, a person is responsible for any contracts or purchases they make, even with Alzheimer's. Since it is a disease that has so many gradations, it does not automatically make one incompetent in the eyes of the court.

If the debts/purchases so far are minimal, I would recommend focusing on transitioning to someone who can act "to take care of his finances." If it is already a big mess, then you'll have a ton of work and expense to have him evaluated, declared incompetent and for a conservator to be appointed. With that in hand, you could then challenge the previous debts.

responding to 195Austin....not neccessarily!!! If the unsecrued debt is in her name only (you didn't ask to have them put your name on the account) then you would not be responsible for the debt if there was no probate involved. The lender would have to file for a probate on the estate, which many won't bother doing due to their own costs for attorneys and court. The problem Austin had was that she agreed to pay it off. I would suggest you see a good attorney that specializes in estate planning and elder care. Mine has given me a wealth of advice! One thing I never knew and is a negative to life estates, is that medicare can now go after the "value" of a life estate. So be careful and get a good attorney!