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I have a sick relative in New Mexico, my father-in-law. He may die a month from now or two years. He's broke and I assume he has debts. As far as assets go, he probably has very close to nothing, just some personal belongings and a small trailer that he lives in. He would like to sign power-of-attorney over to my wife so she can make health-related decisions for him if he isn't in a position to, handle his funeral arrangements, and possibly carry out his will (not sure about this yet). I would like to know if there is risk that my wife would take on his debts, or be exposed to harrassment from creditors. In general are there any obligations or risks we should worry about in having my wife take the power-of-attorney role?
Submitted: 111 days and 16 hours ago.
Category: Estate Law
Value: $28
Status: CLOSED
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State/Country: New Mexico
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Note also that my wife and I live in Washington state. My father-in-law lives in New Mexico.
Posted by
psimmons
111 days and 16 hours ago.
Answer
THanks for the chance to assist
But performing as his "power of attorney" your wife will incur NO liability for this debts. She will be able to make legal decisions if he is unable to do so, but this will not translate into creditors having the ability to seek payment from her.
Now, the person who takes care of the will is known as the executor. After death, the power of attorney has no effect....and the will becomes the main document. But even if she serves as the executor of the estate, she will not suffer any personal liability for his debts.
Please let me know if you have further questions; if so I will do my best to answer them. If not please hit the accept button, its the only way I get credit for my work.
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111 days and 14 hours ago.
Reply
Okay, thank you. I see now that having the power of attorney and being executor of the estate are two different things. I would like to rephrase the question a little: if my wife agrees to serve as the executor of the estate, does this open her to any legal risks? Another thing I'm worried about is receiving a lot of claims from creditors that she would have to handle.
Posted by
psimmons
111 days and 14 hours ago.
Answer
Well, part of the duties of the executor is to settle the estate...that is to determine valid bill and, to the extent the estate can, to pay them.
But the executor will not have to personally pay on of these bills...they will pay from the proceeds of the estate. And when the money is gone, she will notify the creditors. So there is not a legal liability associated with this role.
As for the Number of claims..that will depend on the number of accounts the man has. She would typically post notice of the death in the local paper and the creditors would submit bills to her and she would pay as possible
111 days and 14 hours ago.
Reply
Would she be obliged to sell off assets in order to pay off creditors? And could someone sue her with the assertion that she hadn't handled the estate properly?
Accepted Answer
She will be required to sell assets to pay creditors...a person can sue the estate, but not her personally, unless they can show fraud on her part.
Expert:
psimmons
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8/3/2009
Attorney
12 Years of experience in the law
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