North Carolina does not recognize TOD of used cars. My recently deceased 31 yo grandson has a car registered in NC. People in the title place told his mom that if she signs POA she will be responsible for all of her son’s bills. He had no other assets. The 2 old cars may bring 2,000. and I understand there is some place a notice is posted to enable any one the deceased owes money to can see this notice.
how long this has to be posted before she can sell the 2 old cars, before she cashes the checks?
Does she have to seek out any people he may owe to?
Is there any way that the creditors can take her money (beyond the money she gets from cars) if she signs Power of Attorney?
This is a case where discussion with an estate attorney for the specific state is needed.
In general, only the estate can be billed for debts owed by the decedent. If there are exceptions, a local attorney would know. Beneficiary deeds and POD can vary by state.
Will POA have to shell out of their own pocket for deceased clients bills?
How long is average waiting period for notification of creditors, and how are they notified?
Power of Attorney does not last past death. An executor is responsible for settling the estate. If there was no will, the court will appoint one, usually next of kin. While the executor is responsible for paying the bills owed, the funding comes from the estate, not the executors own funds. If there is insufficient funds in the estate to pay all bills, the state will have a priority in which those owed are paid, and whether they are paid in full or partially.
A notice usually must be published for a certain length of time, and creditors must respond within something like 2 to 6 months.
SonoranSilkies (above) wrote a good response to this. If someone told his Mom to sign a POA now, after his death, they either don’t know what they’re talking about or trying to pull something.
“Son’s bills”, how much debt we talking about? Credit Card debt? Much money in the bank? Any 401K’s or IRA’s? If he doesn’t have much debt and only those 2 old cars there’s not a lot to do.
POA (Power of Attorney) – I was my dad’s POA, but it ended when he died --POA is for when someone is alive. From there, it goes to the executor.
Why do they talk about a POA? Is NC different?
not sure, but with the loss of her son it put her in a tailspin. Dying young and suddenly POA is not the term to use. NC has Gale legal forms and she can get the executor form there at library, and they usually hire a notary at the library. …People with sudden loss in family may take months to start feeling well again, so with no transfer on death in her state, there are many more hoops to jump thru, and they even asked for the kids 24 tax return!! NC has to re- think what a hardship this presents for families. MO has TOD on almost everything, but you can choose not to have it, if you want to throw a wrench in the works for your loved ones!
could owe on credit card, but kid was always broke, and had no solid assets. His dad sometimes helped him with CC, but that does not teach him anything. I do not think he had a checking account. Kids are not used to checks. Dad may have had his name as an heir, but he will change that I am sure.
Thank you. POA is not the correct term. Mother has to sign to become exeutor. A car lot in her town said as long as you present that legal form, it should be a no brainer to sell a junk car. If a debtor comes after her for the money, she is obligated to pay the debtor. Not sure how often that happens.. She will not have to pay any more than she made on the car.
Unexpected death is horrible. And it takes years to get your equilibrium back. Dealing with the business of death while still fragile is excruciating. I speak from my own experience.
To clarify, the POA is only effective and active when the person is alive. It terminates on death. I’m dealing with two estates in NC at the moment and learned this the hard way.
As for debts, the people in the title place are simply wrong. As executor of an estate you are required to be sensible about your actions but you are NEVER responsible for any debts of the deceased.
This sounds like a very simple estate. First, the executor is required to weekly post a notice in the local paper for 4 weeks. Debt holders then have to make claims within 90 days. Check out the NC probate court website. For small estates, they have a fast probate process.