sbuc2012

Dead Dads debt changed to Dead Moms

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My father passed away last year with a Living Trust and left a $8000 credit card debt with major retailer. Trustee tried to settle for 1/3 and never heard back from retailer. Then received a CC letter ( Client Services ) with my mothers name on it. She passed away 22 years ago. Received Dads credit report and it showed this account opened 16 years after Mom passed away. How do I approach the CC co. about this? I still need to show that this account to be paid with fathers name to satisfy Trust. Any help would be welcome. Thank you

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Many times debts are waived... however, because there's a trust involved, the OC smells money.

If you/trustee has an attorney, I recommend he/she contact the CC company. If you don't want to go that route, send a letter to the customer service address and propose a settlement.

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Under most State Probate laws the creditor has missed the boat. The Trustee some time ago notified them of your father's death, they did nothing, filed no claim against the Estate. Usually a creditor has around 120 days to file a claim against the Estate and if they fail to do so are forever barred from collecting.

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Flyingifr has made a very good point. Google your state's probate laws. And if you see the sol has expired for the creditor to file a claim, then you or your estates trustee should bring it to the attention of the parties concerned.

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Thank you for your replies. This is a Living Trust there is no probate the 120 day rule doe not apply. What can I do to let the collection co. know of the mistake they have made? Validate letter, cease and desist, file a complaint ??? Any ideas?

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I new that this situation was unique. I sent the collection co. a cease & desist letter. I told them they are causing distress within our family sending collection notices to my deceased mother. There firm should be embarassed. I also stated that they may be in violation FCRA section 623 for defamation and willful injury. I want the OC to put it back in my Dads name so I can negotiate or sue them. I need to show this account is settled. Any more sugestions of what I can do?

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Thank you for your replies. This is a Living Trust there is no probate the 120 day rule doe not apply. What can I do to let the collection co. know of the mistake they have made? Validate letter, cease and desist, file a complaint ??? Any ideas?

What does the Trust Document say about the Trust upon the Grantor's death or the beneficiary's death? Most Living Trusts dissolve and turn into either Testamentary Trusts or simply name new beneficiaries and become Irrevocable Trusts.

If this is the case then the creditors were out of luck even before Dad died, because legally the money wasn't even his - it belongs to the Trust. He was probably merely the Grantor and the beneficiary.

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Under most State Probate laws the creditor has missed the boat. The Trustee some time ago notified them of your father's death, they did nothing, filed no claim against the Estate. Usually a creditor has around 120 days to file a claim against the Estate and if they fail to do so are forever barred from collecting.

This is absolutely incorrect. The claims period insulates the fiduciary from liability for his or her actions in distributing the estate. There is nothing that prevents the creditor from pursuing beneficiaries for the shares they received--and this would include the fiduciary.

There may be other defenses such as the statute of limitations but failing to file a claim is not a complete bar to collecting.

Flying--this tidbit of misinformation isn't in your book is it?

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