Will probably inherit hardly anything when my mother dies.

[JCC988]

Here's a bit of a complicated rant about financial problems.

My mother says that when she dies, the notarized will states that her estate will immediately go to me and my sister. She says that it will prevent creditors from coming after the inheritance. Yet the law say that debts have to be settled first before inheritance of the estate happens. I'm from NC where probate laws count whether or not there is a will. My mother has substantial hospital debt (hundreds of thousands) which means that my sister and I will hardly get anything and just make our financial woes even worse. Why does she deny this? Why won't she be honest about this and see what is clearly written? Why does she give us false hope?

 

[JCC988]

Given this, I'll probably be financially teetering on ruin forever. I don't think I can handle a lifetime of that. Especially if it entails homelessness.

 

[JCC988]

Actually my mistake.

A transfer on death provision (TOD) would allow us to avoid probate. I don't know for sure if this will release the estate from debt but it just might if my mother is correct.

 

[JCC988]

Well it turns out even avoiding probate will not prevent creditors from coming after the estate. So again we may be left with nothing.

 

[nobodyknows71]

Maybe you shouldn’t rely on getting an inheritance. If you get to inherit something then great, but it’s not an absolute given that will happen.
Probate or no probate, it’s an inheritance not an entitlement.

 

[brightshen]

Here's a bit of a complicated rant about financial problems.

My mother says that when she dies, the notarized will states that her estate will immediately go to me and my sister. She says that it will prevent creditors from coming after the inheritance. Yet the law say that debts have to be settled first before inheritance of the estate happens. I'm from NC where probate laws count whether or not there is a will. My mother has substantial hospital debt (hundreds of thousands) which means that my sister and I will hardly get anything and just make our financial woes even worse. Why does she deny this? Why won't she be honest about this and see what is clearly written? Why does she give us false hope?

Has she met with a lawyer who specializes in estate planning? It sounds like she wants you and your sister to inherit so it's important that she seek legal help. I do agree with the above poster that it's best to not count on an inheritance but proper planning is essential. If she has any accounts like bank accounts, investment accounts, etc. She can list her children as beneficiaries so any funds would go directly to you and not through probate. She would just need to sign benficiary forms, she can do a split such as 50% to you 50% to your sister. In some states I believe they can still try to get you to pay her bills but you would have more power to negotiate.

 

[JmpMster]

Here's a bit of a complicated rant about financial problems.

My mother says that when she dies, the notarized will states that her estate will immediately go to me and my sister. She says that it will prevent creditors from coming after the inheritance. Yet the law say that debts have to be settled first before inheritance of the estate happens. I'm from NC where probate laws count whether or not there is a will. My mother has substantial hospital debt (hundreds of thousands) which means that my sister and I will hardly get anything and just make our financial woes even worse. Why does she deny this? Why won't she be honest about this and see what is clearly written? Why does she give us false hope?

If there is a substantal estate then why not deal with the creditors now? Aside from that very small thing, sorry, but seriously- concerned about how much money will inherit?? I genuinely hope that anybody I love that dies last check they write bounces and has spent their last dime living THEIR life to the fullest.

Life insurance is exempt from creditors in all cases. Anything that is in the form of life insurance goes to the beneficiary if thta is the "estate". Also, trusts are exempt creditors, and the very simple method of adding beneficiaries on as co-owners on titles and accounts easily circumvents the creditor issues. Once again, that is all presuming the intent is to avoid paying other obligations.

 

[JCC988]

If there is a substantal estate then why not deal with the creditors now? Aside from that very small thing, sorry, but seriously- concerned about how much money will inherit?? I genuinely hope that anybody I love that dies last check they write bounces and has spent their last dime living THEIR life to the fullest.

Life insurance is exempt from creditors in all cases. Anything that is in the form of life insurance goes to the beneficiary if thta is the "estate". Also, trusts are exempt creditors, and the very simple method of adding beneficiaries on as co-owners on titles and accounts easily circumvents the creditor issues. Once again, that is all presuming the intent is to avoid paying other obligations.

Mom just doesn't want to deal with the creditors. Even though, as I learned, the debt is actually pretty small (I had to persuade her pretty strongly to be honest). She won't pay the debt but she is taking steps to reduce the burden once she dies like updating the will and creating a family trust. Other than that I just don't know.

 

[Walker]

Talk her into putting the house into you and your sisters names now without making changes to any of the other arrangements?
But yeah, ultimately she can do whatever she's gonna do and I get you're just venting but your finances are your thing, not hers... as your sisters are hers alone as well. You guys are adults, maybe your mom doesn't want to spend down her money now for whatever reason knowing it'll all pay off when she dies.

 

[JCC988]

Talk her into putting the house into you and your sisters names now without making changes to any of the other arrangements?
But yeah, ultimately she can do whatever she's gonna do and I get you're just venting but your finances are your thing, not hers... as your sisters are hers alone as well. You guys are adults, maybe your mom doesn't want to spend down her money now for whatever reason knowing it'll all pay off when she dies.

Yeah. Maybe. I really shouldn't make it my business having had time to think about it. I guess I was just being greedy. Again it all stems back to money problems and worries.

 

[Walker]

it all stems back to money problems and worrie

Man, you know plenty of us get that. It sucks. There's no good answer at all.