Question
My father died and now the house is mine, but he had a lot of credit card debt...?
My father passed away last week. My mother is the beneficiary of his life insurance policy and, since her name was also on the deed to the house, she is now the sole owner of the property. My mother wants to transfer the deed to me (which we are in the process of doing). My question is this: Since my father had quite a bit of credit card debt (all under his name only, my mother’s name is not on any of the cards) can the creditors put a lien against the house before OR after it is transferred to me? Then, if they can not put a lien against the house, is my mother (or me) responsible for his debt? We live in New York (Suffolk County) and we haven’t yet informed the credit card companies of my father’s death. Any help anyone can offer would be great. Thanks! It's not that we do not want the credit card companies to be paid - the issue is that my mother is elderly, does not work, and I would be unable to fully support her. The life insurance policy will be going to pay for her house so at least she has a place to live. I can cover most of her living expenses (I hope!) but if I have a mortgage on top of that things will get way too tight.
4 weeks ago - 8 answers
Best Answer
Chosen by Asker
Your fathers assets can not be legally distributed without first paying off his debts. You can not legally take title from your mother until those debts have been paid in full. It may mean the house has to be sold, although the insurance money can be used as well.
by Janet P
4 weeks ago
Asker's Rating: 
Other Answers
The credit card company is sol.
by lindaorion- 4 weeks ago
Actually, you really need to talk to an estate lawyer about this. Generally a person's "estate" is responsible for paying off the debts. So your fathers assets would hypothetically go towards paying them off. However, there are certain exemptions...one of them may be his homestead.
by Snarky's Wife- 4 weeks ago
they can file a claim with his estate. his assets will be sold to pay off debt. any unpaid debt just goes away.
by David Z- 4 weeks ago
his estate must be probated and then once all are paid then the house can be quit claimed to you. Doing so before hand gives these credit card companies recourse against the the estate
by golferwhoworks- 4 weeks ago
This plan is so peppered with potholes the axle of the truck will break. If your mom puts you on title then she has made a taxable gift to you. She could have a signficant gift tax problem based on how much the house is worth. It sounds like this title transfer is being done to avoid paying off these credit cards. If so then the entire transfer can be reversed by the court. Here is what will happen. The credit card companies will probably sue your father's estate and win. Then they will attempt to collect. Putting a lien on the property might be one step in that process. You both need to speak to a real estate and tax attorney before you do this. One final thought. Your father ran up that debt and there appears to be a means to pay them. Don't you think the credit card companies deserve to get paid?
by Ranger4402- 4 weeks ago
Depends on how they held title. IF they were tenants by the entirety or joint tenants with a right of survivorship, the land passes to her outside of probate, and she can do anything she likes outside of the estate. Her tax consequences may be a bigger problem He's dead. Lien will attach to HIS estate. House was no longer his as soon as you have a death certificate. Get a probate lawyer involved or speak with the county probate office
by wizjp- 4 weeks ago
Usually jointly owned real property passes to the survivor (your mom in this case). That means that the house is not considered "estate or probate" property. This would be the same for a jointly owned bank account - it passes to the surviving owner.
by DeeDee- 4 weeks ago