I am the power of attorney and executor for my parents. They added me to their credit cards and had credit cards mailed to me in my name. Am I responsible for these cards when they die?
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Anonymous
ANSWERS: 9
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If your name is on the cards, I would guess that you are. But you really need to consult a lawyer.
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You will be responsible for what happens to them. If you choose to use them, you'd probably have them switched to your account. But you could cancel them too. As power of attorney it will be your responsibility to handle all financial affairs until that mess is over.
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If your name is on ANYTHING, it becomes your responsibility when the others do not or cannot pay.
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Yes, you will be responsible. And Good luck on everything else. It's a real good idea to have your name removed from their cards, they can set up to have cards paid in full at time of their death, without your name on them. Being their, poa, as you know is void at time of death. Then pr takes over whole different ball. Since your parents are still alive, read everything on being the PR, if you have questions they can answer. It's the hardest job you will ever do!!! Do you have siblings?
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If you ONLY have financial power of attorney over their accounts - no, they have no right to collect from you. If your name is on the account in question - yes, they can and most likely will go after you to collect.
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Yes and No. Your parents estate is responsible for the cards, so as executer you will have to handle this debt. However, you are not personally responsible. Thus, if your parents estate cannot pay off the debt, you don't have to come up with the funds on your own.
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The job of executor means you are responsible for the closure of an estate and all it's assets... essentially you execute the will. You do not assume responsibility for the debts of the estate - just that you will pay them off from the assets of the estate before you distribute those assets to heirs. Power of Attorney is also granted in the event that the owner(s) of an estate become incapacitated and are unable to execute decision making authority over their assets while they are living. Again, you do not have a legal responsibility to assume debt in the event that an estate has insufficient assets to cover its liabilities... You have the authority to make decisions regarding the disposition of the estate in the absence (or inability) of the estate owner. No worries. This is a good thing your parents have done... it means they trust you and believe you will be honest and fair dealing with their things. Typically, an executor is entitled to draw a small percentage of the estate's value as payment for the work required. (varies from state to state) It is a lot of work, but is managable and someone must do it...
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If you didn't agree to be on the card(by signature), that's their debt. If you spend on the card it would be their liability. Even though you have power of attorney, most POA's have a clause that limits your liability, absent willfull abuse of that power.
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To reiterate what Jeffers wrote, it is important to differentiate between being an authorized user on an account and being a joint owner. Think of it this way, a user can use, use, use.... An owner owns all the responsibility. :-)
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