Just received a tax document addressed to me for my mothers home taxes. After checking into this I find out a paralegal charged my mom for a document giving her home to my sister and I. The paralegal said my mom no longer owns the home now, my sister and I do. The paralegal told me my mom told her the home was paid for, my mom would never lie and had home mortgage lowered to lower interest rate much prior to working with paralegal. Furthermore, the loan is escrow type that includes taxes and homeowners insurance within mortgage payment.
My mother is 83. This was done with paralegal approximately 2 years ago. My mother simply wanted to leave her home to children in event of her death, not give the home before her death if mom should pass before we do.
Very frustrating and troublesome.

What about student loan debt? As baby boomers approach old age with hundreds of thousands carried over the years (usurous interest rates have multiplied that debt) many still carry student loan debt. It will affect social security if not actively being paid, the government may deduct I believe. But is there a legal way to sheild what is left in an estate so that children and the estate does not have to pay student loans?

From numerous previous stories and posts on related, I understand:
SHORT ANSWER: NO.
A creditor can threaten to send it to collections, or take legal actions against survivors, but they lack legal avenue to get repaid from survivors. Family members are NOT legally responsible for their deceased relative’s debts, unless they actually co-signed on a contract to be co-responsible for that debt.
POA’s / Executors are similarly exempt from personal liability for the debts someone else accrues; they merely handle/manage the estate. They must pay the bills for the incapacitated or deceased person, but the funds to pay those come from the person’s estate, until the funds and assets are used-up; bills from those persons should never come from personal assets of an estate manager/POA.
That said...
Some States have pursued family members for repayment of a deceased parent or a child’s debts from State funded health/facility care.
Families need to know: States want to avoid causing survivors to become welfare recipients, and do not want to cause family to lose their business or assets and potentially become welfare recipients.
So, if repaying State debts accrued by an incapacitated or deceased elder or child, would put the survivor into penury and dependent on Welfare, family needs to show documentation proving that repaying State for those debts, would cause penury. Then, State should stop pursuing that avenue of repayment.
And, none can wring blood from a turnip: if family member[s] are already welfare recipients, State cannot take those helps from them to pay a deceased relative’s Care debts.

It is a family decision have a good power of attorney in place who can help with the running of the home . medical debt should be the least of the worries yet I managed to get most of my late mother's medical debt written off.

I simply wrote some carefully worded letters to the medical providers and managed to have most of my late mother's medical debt written off . I won't be doing the same for my father cause my mom and I were best friends and I went to all her appointments and was her care giver when she became sick we shared everything together most of my own personal credit is hooked in with hers. I don't have that connection with my father. It is the family decision regarding your loved one's finances it is a good thing to have a power of attorney in place cause that person can be responsible and run the day to day things for home management when your loved ones are no longer able too. As far as debt that is also a family decision.

Isn’t there a difference between being personally responsible for parents debt and their estate being responsible? I was the POA for my Aunt and I was not responsible personally for her debt, but her estate was responsible. Resulting in her estate being greatly reduced! As her POA I had to ensure that I was being financially responsible for her estate. And everyone crawls out of the woodwork to claim their stake in the money. For instance, she had Meals on Wheels. While the individual doesn’t get charged, once gone the estate is charged. So heads up!

Kya hai ye fattu

I am the caregiver for my husband and have durable POA. Am I responsible for his debts? Am I responsible for his medical bills?

Can the creditors of the person you have poa over report to your credit report fully knowing you are power of attorny ? example being late on their bill and reproting to your credit report as late 30 days or 60. And then after death continue to report to poa credit report for years without sending any notification to the poa ? even after sending 1099-c ?

My mother lives with us & she recently co-signed a new car loan for her eldest grandchild. She has social security income & that is it. Doesn't seem to affect my nephew in the least that he is putting her at a high risk financially. I strongly tried to discourage Mom from doing this as he has a deserved lousy credit rating. Because she does live with us, I am concerned that we may be responsible for this if anything were to happen to her.

An adult child can absolutely be responsible for some of their parents debts in the US. While the federal government revoked their filial responsibilty laws many states still have them. In NJ and Pennsylvania cases recently went to court under these laws and the children were ordered.in the PA case to pay their mothers 90 thousand dollar nursing home bill and in NJ two brothers were ordered to provide their destitute mother with a monthly allowance

Being a debtor, you have all the responsibilities in paying the amount that you borrowed. Just like in many lenders, many of them requires co-maker or co-debtor as assurance that if the main debtor failed to pay his debt, they still have the chance to be paid by asking his co-debtor to shoulder the responsibilities. If you're a senior on a set income, the very last thing you want is an overly burdensome debt load. Here's how you can deal with debt in old age. It's not an easy fix, but it can work.

My husbands daughter had him sign POA any time and every time she wanted something of ours I gave him the money to buy a utility tailer and he was diagnoised with dementia in Jan 04 and she did this 3 weeks later so now she has the trailer. In the last 3 years she had him signing POA for bill of sale and she make the list out and claimed my things I had before we married and stole a lot of my things when my husband moved my things here the last time she had him hign a POA mycare was in my husbands name and I totaled the car and was going to get $6000.00 she did not do any thing until the money was put in the bank three months later and went in the next day to take it out and her father would only let her have $3000.00 she ended up changing the address and his SS checks to her bank and left $5.09 for me to live on until my SS came in because I had spent my money on a rent car and ins and some bills thinking we had the money in the bank. She sent him to TX with $100.00 in his pocket and when he ask for grocery money she told him I do not care what your wife eats I will not give you andy grocery money and she didn't When we turned her in to Social Service they did nothing When my husband ended up bed ridden and came to the house I ask why they did not do any thing They said WE DID NOT THING THERE WAS ANY THING TO IT. This women leaves me with $5.09 in the bank for grocery and they did not want to check it out. What does that say about elder abuse and people not wanting to do there job

Oh bOy! I thought that once parents die it's all over! Didn't realize the debts of my elders and predecessors can actually haunt me even if they're six feet under! Where do humans find peace on this planet? LOL!!! shhesh! ggrrrr$##@@!~

love1972,
You can have her pre-pay her funeral expenses, or pre-pay a portion, reducing her assets to under the $2,000 range required for Medicaid eligibility. This is a Medicaid compliant way of reducing her assets.

My mother has been in a nursing home facility for 3 years and placed on Medicaid. She had approx $15,000 outstanding debt at the time she entered the facility. Both my attorney and I sent numerous letters to the creditors and their attorneys they hired to collect the debt stating mom is on Medicaid and has no assets. It's like they didn't even read the letters and proceeded to serve her a Summons and put 2 judgments on the house that I still live in. How can I fight this and have the judgments removed? The house is in my name as well as mom's as the attorney wanted her name on as life estate of the house so we wouldn't lose it through Medicaid. What next?

What happens if judgements were put on the house? After numerous letters to the creditors by both myself and my attorney, they proceeded to serve my mother with a summons even though she has been a permanent resident of a nursing home and is on Medicaid.

I meant to say that threats and blackmail are the worst. Seems your mom had a lot of control over you. It is often easy to ignore warnings, hoping for alternative results, but not always realistic. These observations come from personal experience, and learning things the hard way. Another explanation is that we don't always realize what's happening. Confusion reigns in abusive relationships, distorting our thoughts about reality. I truly feel for you, and pray you have emotional support while working through your difficulties. Thank goodness your sister has taken you in. Hope you feel safe venting here and understanding things, and remember to look out, and care for you.

Yes I guess you could say it was blackmail. My sister warned me about it, and I ignored all the warning signs. Anyway, I am just glad that I have a place to live here with my sister and her family. Getting her life insurance policies stopped has helped me some and living here rent-free will help me to get all this stuff paid off.

Emotional blackmail (abuse) and blackmail are the worst!!! Debt follows a close second. My, they sure can play games when they want something.

In my case, I feel responsible for a lot of went on with my mom. We lived together in her apartment, I was her full-time caretaker, and I should have been more strict with her when she would get ahold of the charge cards. I also feel that I should have gotten financial power of attorney on my own instead of waiting until my sister stepped and did it. A little late now, lots of credit card debt, partly to move to be closer to my sister, don't know if I will ever get out from under all of this debt. Unfortunately my own debt is out of control trying to satisfy her wants and needs while I was living with her. Now that mom is in the nursing home, I am trying to figure out how I can deal with all of this, and all I have is disability income. I have to admit that a lot of this I feel personally responsible for as I was the one doing the finances and paying the bills and I should have taken more control over the credit cards. Unfortunately mom did things like threaten to turn me in for elder abuse if I took away the cards and checkbook. Anyway it is all over now, my sister has custody and control over everything now.

Thank you. I met with the furneral home yesterday but it appears the representative did not know about the Irrevokable Funeral Contract. I will get on it right away.

I did for both my folks. It's called an Irrevokable Funeral Contract. A funeral director can walk you through. As long as the funds are designated (called a spend down), they are not counted as assets, but go to pay funeral costs when she passes. If I were you, I'd call right away.

I have placed my great aunt in a nursing facility. She has medicare and will be up on 2/5/10. In order for her to quality for mediciad her assets has to be at $2,000 or less. She is not a big spender. However, I want to make sure she has enough for burial when the time comes. She has only $5,000 and the estimated cost is going to be about $10,000 total. What can I do before medical gets all the m oney. and then I will be stuck with the burial cost.

can I take $4,000 0ut for furture burial expenses. I am the attorney in fact. I need help

What if I'm guardian/conservator for one on Medicaid, a public guardian/conservator for another (both incapacitated) and the PG taking all the assets for the one not on Medicaid, letting the Ward distribute them un-responsibly? I am named Executrix at death for both. Any way to protect the estate from dissipation prior to death?

What happens when you are POA and there was not an executive person put in place at death

In my previous comment, I suggested knowing what "triggers" the Power of Attorney. That can be the actual signing of the document, making it instantly in force, or it can be "springing" as you mention above upon incapacity - either mental or physical. How and when incapacity is determined can be problematic, especially in this day and age of lawsuits. It usually requires getting 2 physicians to agree about the level of incapacity in a timely fashion. Sometimes it takes a court decision. Be aware that someone can grant you instant POA powers which end at their incapacity and the powers are then transferred to someone else. So read the document carefully.

You are talking about a "springing" power of attorney that only kicks in if the person becomes incapacitated.

I think that is a good idea. I do not understand how anyone can force you to pay your parent's debts unless you inheirit money from their estate and the estate has to pay the debt.

Too many family members are being attacked unfairly and intimidated by greedy people.

A financial power of attorney is a good idea for everyone because it gives your appointed agent the legal power to handle your financial obligations, like paying your rent or mortgage, insurance, dealing with creditors, etc., out of your own accounts should something happen to you that prohbits you from doing it yourself. That "something" could be, among other things, a medical crisis, an accident, or incompetency issues. For example, even your spouse would have difficulty accessing your IRA without a POA if those funds are needed. Make sure you understand what triggers your Power of Attorney to become active, appoint someone you trust, and make sure they know where their copy of that document is in case it is needed! Many states have blank copies of the state approved document available on -line -just print out and follow the directions to a tee. Remember, all POAs end at the death - then the executor takes over.

This article has proved to be timely and beneficial for me. Though I myself have vascular dementia, I do my best to help an elderly lady friend whose family will have nothing to do with her. I am now on her checking account and have a durable power of attorney. I am writing out her bills now so know how much debt she has. I believe she will qualify for debt forgiveness