Executor of estate
My mother has run up her visa, (which is in my fathers name), by a sustantial amount.
My sister the excutor of the estate is worried now that when my mother passes on she will be responsible for that money.My sister has already filed for bankruptcy once and is on the verg again. She cannnot pay back the amount on the visa nor does my mothers estate have this amount available.Quite the contrary. Will she be liable for this money owing on the visa. and what if she has to file for bankruptcy, does she have to include this as one of her creditors?
You’ve raised two or three good issues. in regards to your mother’s Visa, if you mother is on a pensioner then there is very little that can be done by her creditors to collect on her debts. The term that is used in the industry is “creditor proof”. That doesn’t mean she shouldn’t repay her debt if she is able, it just means her pensions cannot be garnisheed to pay her Visa account.
Can her executor be hled responsible? I don’t think so, but to be certain I suggest you contact a lawyer that handles estates. We are accountants and as such we cannot offer legal advice.
As to whether or not bankruptcy makes sense for your mother (or your sister) – probably the best thing to do is to suggest to your sister that she contact a trustee in her area and have a quick conversation about her situation over the phone. It won’t cost her anything to make the call and I am sure it will be helpful.