what happens if i pay medical bills after an estate lawyer told me not to

What debts are forgiven at death?

What debt is forgiven when you die? Most debts have to be paid through your estate in the event of death. However, federal student loan debts and some private student loan debts may be forgiven if the primary borrower dies.

What are the consequences of not paying medical bills?

Consequences of not paying medical billsLate fees and interest. Your healthcare provider will start pressuring you to pay the medical debt by adding late fees and/or interest charges to your balance — to the extent allowed in your state. ... Debt collectors. ... Credit damage. ... Lawsuit. ... Liens, wage garnishments, and levies.

What are considered liabilities of an estate?

Liabilities include any outstanding debt, funeral expenses, taxes, and any other administrative costs that must be paid, upon one's death. An executor's third and final task involves distributing the net estate among any beneficiaries, according to the directives articulated in the will.

Is beneficiary responsible for debt?

If you're the named beneficiary on a life insurance policy, that money is yours to do with as you wish. You're not responsible for the debts of others, including your parents, spouse, or children, unless the debt is also in your name or you cosigned for the debt.

Can medical debt be forgiven?

How does medical bill debt forgiveness work? If you owe money to a hospital or healthcare provider, you may qualify for medical bill debt forgiveness. Eligibility is typically based on income, family size, and other factors. Ask about debt forgiveness even if you think your income is too high to qualify.

How long until medical debt is forgiven?

seven yearsWhile medical debt remains on your credit report for seven years, the three major credit scoring agencies (Experian, Equifax and TransUnion) will remove it from your credit history once paid off by an insurer.

Can an executor be personally liable?

An executor can be held personally liable for the debts of the estate up to the value of the estate. If they distribute the estate and leave a creditor outstanding, that creditor may bring a claim against the executors. This is the case even where the executor had no idea the debt even existed.

What items are considered part of an estate?

An estate is everything comprising the net worth of an individual, including all land and real estate, possessions, financial securities, cash, and other assets that the individual owns or has a controlling interest in.

What are liabilities in probate?

Probate liabilities are any payments which need to be made from the Estate. When the Estate is being valued to apply for Probate, the values of any liabilities are deducted from the total value of the assets.

Who is responsible for medical bills of deceased parent?

estateIn most cases, the deceased person's estate is responsible for paying any debt left behind, including medical bills. If there's not enough money in the estate, family members still generally aren't responsible for covering a loved one's medical debt after death — although there are some exceptions.

Can debt collectors go after life insurance?

Creditors typically can't go after certain assets like your retirement accounts, living trusts or life insurance benefits to pay off debts. These assets go to the named beneficiaries and aren't part of the probate process that settles your estate.

How much does an estate have to be worth to go to probate?

Every state has laws that spell out how much an estate would need to be worth to require the full probate process—anywhere from $10,000 to $275,000.

What happens if you don't have health insurance?

When your case is settled, you may be left with medical bills, especially if you do not have health insurance, or even if you do, your health insurance may not pay all of your bills.

What happens when a case is settled?

When your case is settled, you may be left with medical bills, especially if you do not have health insurance, or even if you do, your health insurance may not pay all of your bills. Once your case is settled, how do these bills get paid?

What is statutory lien?

The interest is based upon one of the following: a statutory lien; a final judgment addressing disposition of those funds or property; or a written agreement by the client or the lawyer on behalf of the client guaranteeing payment out of those funds or property.

What happens to medical bills after death?

Generally, any debts a deceased person leaves behind get paid out of the individual’s estate.

Do you have to pay debts to a deceased person?

Generally, any debts a deceased person leaves behind get paid out of the individual’s estate. If there’s not enough money or assets in the estate, debts typically go unpaid. That means relatives are usually not required to pay their deceased loved one’s debt — but there are some exceptions.

Does medical debt disappear after death?

Medical debt doesn’t disappear when someone passes away. In most cases, the deceased person’s estate is responsible for paying any debt left behind, including medical bills. If there’s not enough money in the estate, family members still generally aren’t responsible for covering a loved one’s medical debt after death — although there are some ...

What happens if a deceased person doesn't have a will?

In cases where the deceased person didn’t have a will, the courts may appoint an administrator or someone else to do the job. The executor must prioritize debts for payment based on federal and state laws. If there isn’t enough money to cover the debts, creditors may look for someone else to pay the bills.

Do you have to pay off credit card debt?

This would make you responsible for paying off any balance. If you’re simply an authorized user of the credit card, then you usually won’t have to pay for the credit card debt.

Can life insurance be included in an estate?

Probably not. Assets like life insurance policies, which pay out to beneficiaries, generally aren’t included as assets for estate purposes. So when an insured person dies, the payout from the policy belongs to the beneficiary of the policy, and not the deceased person’s estate.

What is the Cares Act?

In addition to laws that already protect survivors from the burden of their deceased loved one’s debt, the Coronavirus Aid, Relief and Economic Security Act, or CARES Act, has put extra protections in place. Here are some key things to know.

Glen Edward Ashman

I am sorry for your loss. It would almost never be proper for an executrix to close an estate after six months. So you may be responsible. The answer will depend on details we do not have. Hopefully you used a lawyer (if you did not, the chances of making missteps are high). If you used one, call your lawyer. If you didn't, see one...

Erik John Broel

I am very sorry to hear about your loss. I will do my best to help you understand some of the legal background at work here to give you an idea of what some of your options may be. These are just some things to think about, and there are other considerations, but I hope this helps you start to make sense of the situation...

Amanda Mathis Riedling

It is possible. There is not enough information here to answer your question specifically. My answer would depend on how much the medical bill is and what process you used to open and close the estate. You should definitely have an attorney review what was done in the estate and give you a recommendation on how to handle the medical bill.

Loraine M. DiSalvo

You need to consult an attorney. Six monthsafter death is an extremely short time for a probate to be completed. That does raise a question for me as to whether you did everything correctly. If you did, you may be okay. However, if you didn't do everything correctly, yes, as Executor you could be held personally liable for this bill.

David F Falvey

Hi:#N#Sorry to hear that you have had to file a grievance against an attorney but based on what you are alleging you are taking the best course of action. Now what are your damages? You haven't mentioned anything about your credit score or being denied credit. Your credit report isn't your credit score but it's certainly derived from your...

Dorothy G Bunce

I would suggest that you contact your medical providers (or their collectors) to see if you can work out a settlement of your debts with them. If you are able to do that, you can then proceed to repair your credit report.#N#Hope this perspective helps!

What are the obligations of an estate?

An estate’s obligations are usually of two sorts: 1) the debts of the decedent, including the costs of administering the decedent’s probate, and 2) gifts due to the decedent’s heirs or legatees pursuant to the decedent’s Will or the intestacy statute. Creditor Claims.

Do creditors have to be paid in full?

All creditors of one category must be paid in full before creditors of a lower category receive any payment. Within a category, creditors get paid to the extent of funds proportional to the amount of their claim. RCW 11.76.150.

What is an insolvent estate?

An estate with insufficient funds to pay the estate’s obligations is “insolvent.”. An estate’s obligations are usually of two sorts: 1) the debts of the decedent, including the costs of administering the decedent’s probate, and 2) gifts due to the decedent’s heirs or legatees pursuant to the decedent’s Will or the intestacy statute.

What happens if you don't pay your bills?

mortgage. house or car insurance. car payments. real estate taxes. If these expenses aren't paid, valuable property could be lost or damaged.

What happens if you pay more debt than you have assets?

If it appears that there are more debts than assets, you are dealing with what's called an insolvent estate. Don't pay any debts you don't have to—state law will set out a priority list for you to follow. If you pay some low-priority creditors, you may find yourself personally liable for the amount you shouldn't have paid out.

What is the job of executor?

One of the executor's most important jobs is to pay the legitimate debts of the deceased person and the estate, using estate assets.

How long does it take for creditors to file a claim in probate?

Most states give them about four to six months. If they don't submit a claim by the deadline, most creditors are out of luck.

Can creditors submit formal and informal claims?

Most claims are informal—that is, they're just ordinary bills, sent to the deceased person, that get forwarded to the executor. The executor has authority to pay these debts as they come in, using estate assets. (Usually, the executor consolidates the deceased person's liquid assets into an estate checking account.)

What is an informal claim?

Most claims are informal—that is, they're just ordinary bills, sent to the deceased person, that get forwarded to the executor. The executor has authority to pay these debts as they come in, using estate assets. (Usually, the executor consolidates the deceased person's liquid assets into an estate checking account.)

What happens to medical debt when you die?

If medical debt still exists at the time of death, it falls primarily on the estate. That means the executor of the estate, usually an adult child or partner of the deceased, will use the estate to pay these bills. If the deceased person’s total debt exceeds the value of the assets in the estate, this is an insolvent estate.

Can a debt collector talk to the executor of a deceased person?

Debt collectors are legally allowed to discuss the deceased person’s debt with the executor. However, if you’re not the executor or the spouse or guardian, this is not allowed. Otherwise, collectors might contact you in order to get the name of the deceased person’s executor.

What happens when an estate closes?

As mentioned, this responsibility falls on the estate. When the estate closes, the deceased person’s debts are typically wiped out if they haven’t been paid . However, there are some instances where you might be required to pay for these medical bills.

What happens if you cosign with your parents?

If you cosigned with your parents for any expense, this now is your responsibility. Marital debts: In some states, called community property states, debts incurred by one spouse during marriage are equally owned. This would lead one spouse to be on the hook for the other’s medical expenses.

What is filial responsibility?

This means adult children might be required to pay for unpaid medical debts if they are not covered by the estate. These laws are typically utilized by nursing homes and long-term facilities.

What is filial responsibility in nursing homes?

Nursing homes are tricky. Long-term care facilities like hospice outside of a hospital or nursing homes are sometimes under the filial responsibility statutes. These laws say adults children are responsible for financially helping parents who are not able to afford care on their own.

Is a healthcare bill negotiable?

Just about any healthcare bill is negotiable. Talking to the healthcare provider or long-term care facility might prove fruitful. They might be willing to lessen the overall bill or even forgive the fees altogether. Even if the bill falls on the estate, the provider might negotiate a lower settlement.