Expert: Charles W. Field - 2/13/2004

Question
Hello. My father recently died. He had an obsolete will, no property, very little cash and about $25,000 in life insurance. He has credit card debt in the amount of about $10,000. Are we required to pay the credit cards? If not, what happens? Any help you can give will be appreciated.

Answer
First, the life insurance is out of the picture, unless he named his estate as the beneficiary, which would be very unusual. The proceeds of life insurance go to the named beneficiary. As to the "obsolete" will, if it meets legal requirements and was his last will, it is still operative. The executor of the will is obligated to gather his assets and then pay certain debts. The priority of these debts is determined by your state law. It sounds like the credit card company will get nothing, which is not unusual. I would advise you to consult with a local attorney who can review the will and the financial documents. Good luck.