Financial Issues – Death of Family Members

Preparing yourself for the inevitable end stage of life and financial planning.

If you are the Power of Attorney durable and medical it is very important to know these tips, and information before you feel drowned in debt. Unfortunately, there are many elderly that do not have life insurance, and if they do the last visit to the hospital or one bill will eat the money up before you are able to use it for final expenses. I am one of those people.

Let me explain, my mother died without insurance. Unexpected, sudden, and confusing as I tried to navigate her bills. I was both my mother and father’s POA, a law in our state which left me in a loop was since he was unable to understand his funds were not to be used to pay her bills. To my astonishment after going through her purse; she had eleven credit accounts every single one maxed out. I had no clue she had been “robbing Peter to pay Paul”, old school saying. She was very adept at hiding this from me. She was physically disabled and clearly not mentally. As I began to add up the bills and the number climbed past 24,000 dollars in credit, the last hospital visit bill arrived and it was well over 20,000. I became distraught, there was no way I could pay for any of these!

I was contacted by a dear family member that worked in finances and sent me some legal information, which helped immensely and today I will share that with you.

1. If you are not on the bill regardless of POA you send them a letter she/he has passed with a copy of death certificate. The end, you are not responsible.
2. There are a couple of exceptions when it is not a credit card although a credit account such as Carol Wright, Dr. Lenard, and various other small companies they do have stipulations.
3. The ones that have stipulations can be negotiated with their legal department and small payments made monthly at a fraction of the entire bill. Rule of thumb is half to one fourth.
4. Once you receive POA there are certain things you should be aware of. If there is a car in question take the registration to the title office and have a transfer on death written on the front of the title or you will be in a long battle of trying to get the auto in a name other than the transfer on death name. The same with a home or any large items that show ownership in need of transfer.
5. Probate is a long process that should be avoided as it can take years to accomplish.
6. Protect your own assets.

My journey is not yet complete for less than three years later my father passed and similar issues appeared.  I am still working with an attorney with the car. You may wonder why I am sharing? To save some mental anguish for anyone going through this same process.