Smart Money: Mom's bills pass on with her
Published: November 1, 2009
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share thisDEAR BRUCE: My mother died and had no will, estate, executor, etc. She had $100 in her bank account when she died, and that has been closed out. There is no money to pay any outstanding bills, and she also did not have life insurance - we paid the undertaker. What happens to her bills? - Reader, via e-mail
DEAR READER.: The easiest thing for you to do is to write to each of the creditors, enclose a death certificate showing that your mother has passed away, and say in the letter what you've told me. There was no money in her estate even to pay for her funeral. You don't even have to mention life insurance since that would not be a factor. You can further state that the estate was not probated because there was nothing to probate. I think this should close the matter out. Whatever you do, don't ignore it.
Time-share troubles
DEAR BRUCE: I have read all your articles about time-shares, how they are a bad investment, sold to consumers under pressure, are not worth it with the tax and maintenance fees, etc. I wish I had read your column before we made the mistake of buying into the concept. We never use it and have it on the market to sell. Even that's not working. Is it stupid to stop paying the maintenance fees and taxes and let the ownership revert back to the original owners or sell it on the courthouse steps? Are we opening ourselves up to a bad credit rating for the rest of our lives? - Frustrated, via e-mail
DEAR FRUSTRATED.: Unhappily, it's not all that simple. If you don't pay the fees and taxes, it may not revert back to the original owner. Oftentimes, they don't want them, and they will bring an action against you for the deficiency. As far as selling on the courthouse steps, that very likely is an exercise in futility. The least of the problem is the credit rating. You may approach the company that sold you the time-share. They may or may not be willing to strike a deal with you. Their point of view, more often than not, is you have to pay us, we don't want it back, and we will go to court to get garnishments or whatever it takes to make it happen.
SEND QUESTIONS to: Smart Money, P.O. Box 2095, Elfers, FL 34680 or bruce@bruce williams.com.
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