Will the bill collectors come after Dad's estate?
My 82 year old father is on dialysis and hasn't paid his bills for years. The center continues to treat him, but he has had collection calls. He is determined to confound and confuse them for as long as possible. He has some money and owns his small home, but the bills would clean him out. I don't know how much he owes, but I think at least into the five digits. He is a veteran, but the veteran's center is farther away. He lives at home and is fairly self sufficient. If he were to die, would the collectors get first crack at whatever money or property he has? And would there be a way to protect his small estate?
Expert Answer
Generally, If/when your father dies, his creditors would legally be entitled to collect what he owed them before any of his small estate could be passed to family members or other inheritors. The technicalities of how the creditors would collect depend on:
1) Whether your father left a will or not. If he left a will, there would normally be a probate court proceeding, where creditors can file claims. If he did not leave a will, there would normally be what is called an "intestate" court proceeding, where the creditors would also file their claims.
2) The law of the state where your father was living when he died; Many states' laws exempt small estates from regular probate proceedings. Each of these states sets a different dollar amount defining what a "small" estate is.
I do not know of any way to legally protect your father's estate from his creditors. From what you said, it's clear that he owes them money. He or you could consult an attorney in the state where your father lives to see if there's some way that his estate could be protected from his creditors. However, I think (but am not certain) that you'd probably end up paying a lawyer's fee without learning anything that would legally work.