Who is responsible for bills when parents die?

I'm confused about the terminology re the life insurance policy, taken out by her brother, but she "owns". So you mean your brother applied for life ins, and got a policy, but you've been paying the premiums? Or do you mean you're the sole beneficiary? How do you "own" someone else's life insurance? I'm not very knowledgable on life ins (obviously) but my folks have some small life ins, which I knew nothing about until recently. It would be nice to know, if Medicaid could MERP those policies.

If you personally own the policy, then no, Medicaid cannot touch it.

I am the owner of a life insurance policy taken out by my single, never married brother who is seriously ill, in a nursing facility which is being paid for by Medicaid. Are the funds from this policy 'reachable' by Medicaid or the NHF?

I think it depends on the debt. As it was mentioned, credit card debt is unsecured and unless it is an incredible amount of debt I think you can just send a copy of the death certificate. The best thing would be to contact an attorney specializing in that area

I am grateful for all the comments...we have a trust set up and even our house is in the trust...the only things not in the trust are household goods, my car and a few thousand in a checking account in my name that I use for day to day bills.........I have other accounts that are in the trust. Was all set up by a lawyer in 2008 and 2009 when the missus was applying for medicaid when it became obvious that she would be in the nursing home for life due to a stroke and it was also obvious that we were on a collision course of going broke......

There won't be much to probate should she pass away before me..

I also learned in 08 that all lawyers who say they are elder care specialists are not equally qualified..a couple I consulted were woefully not up to date. We chose a man who is on the board of directors of our state bar assn. and is also chairman of the elder care section of the state board..He is one in a million..

My Husband was the executor of his father's estate. It was a mess. Dad had reluctantly met once with an attorney and had done the bare minimum to set things up--but it was enough to get hubby on as executor. Actually, I did a TON of the work...cleaning out his paperwork, paying bills (hubby, of course, signed checks). We paid off everything...CC's, dental bill for new dentures that he obviously wasn't going to need..drs and final hospital bill. Even dry cleaning. We were told later that we were not responsible for the dentist or the CC's. but that seemed wrong, Dad in fact had used those services and they deserved to be paid. This experience was what got my MIL (dad and my MIL were divorced 15 years before he died) to FINALLY set up a trust. She was of the mindset that when she died, all 3 kids would just congenially split up her things, 3 ways. When I finally told her that TOTAL STRANGERS were going to go through her underwear drawers...she panicked and began to listen to us.

Huge thanks for that clarification Mr. Heiser.

When my dad died I called his creditors and most asked for a copy of the death certificate. It took a few months to get straightened out but eventually I got it taken care of.

I have to add that when my father died I paid his credit card bill immediately when the account was closed. I paid it out of my parents' money in my mother's account. My father's account had to go through probate, so was not available for six months. This was a very simple way to handle it since there was a surviving spouse and money available.

Under the federal Medicaid statute, the state can only recover for past outlays on behalf of the decedent out of the decedent's "estate." 42 U.S.C. 1396p(b)(4)(A).

All states must seek recovery at least from the “probate estate” of the Medicaid recipient, as defined by the relevant state law. In addition, a state may expand its definition of “estate” to include virtually any asset in which the deceased nursing home resident had any legal interest the moment before death. Thus, it appears that a state cannot recover against children under filial responsibility laws.

The estate, unless of course you signed ANYTHING as responsible party or co-signed on admit to NH or a loan.
Also check the filial responsibility laws in your state online.

Don't forget, credit cards are unsecured. The credit card company is giving you that credit based on your credit information. If you are deceased, your credit worthiness becomes $0. Most credit card companies will write it off, since it is a tax benefit to them, however, if it is a huge amount, they may file on the estate unless there is a trust. Trusts do not go through probate.

Most states don't go after heirs for the nursing home money but if they have the filial responsibility law on the books they can. If someone has a lot of money, they are more likely to go after it.

Other than that, as JessieBelle said, the estate pays the bills. Copies of death certificates are needed if the bill can't be paid off and even to close the account, so get a lot of those.

Take care,
Carol

The estate is responsible for paying the bills. Creditors file claims against an estate during the probate period. If there is not enough money, the creditors have to take the loss. Some may go after the heirs and insist they owe the money, but it is not so. There is only one case where heirs can be responsible. Nursing homes can try to recover money from heirs in filial responsibility states. It is the only creditor I know that can collect from the heirs. Usually one heir is targeted, probably because they seem to be the one most likely to pay.