Mother-in-law recently passed away. It wasn't until we were confronted by probate that we were informed that my wife's sister, who has POA over Mother, had a credit card takened out in mothers name using mothers info, without anyones knowledge. Now that we found out and confronted her, she says she doesn't remember, even when the credit card logs show she used it at dept stores and alot at walmart for her own needs. Now we stand to loose our inheritance because of her! What can be done? Someone please help us on this.
Your wife can go to the police and tell them what happened. Get it on record. If your SIL committed a crime in your MIL's name, it's a police matter. They get so many cases like this that it can be years before any investigation start, that is if there's any done at all. The credit card company will make a claim to your MIL's estate for payment. It will have to go into court a judge will determine whether or not your MIL's estate is responsible for the bill or your SIL is.
I would like to make one thing plain to you though. You should not say 'our' inheritance. It is not your inheritance too. It is your wife's inheritance because that was her mother, not yours. You would do well to not sound so eager about the money if you go with your wife to talk to the fraud division of the police department or to court with her.
Who is the executor of your MIL's estate? Did she leave a will? Your SIL's POA ended when your MIL died.
The law requires that all debts to creditors be paid, if there is enough money left in the estate. So yes, the credit card bill needs to be paid.
After this and all other debts are paid by the estate, then the remaining money/assets will be distributed according to the will. If there was no will, then state law will dictate how the money/assets that are left will be divided.
If you feel like your SIL took advantage of your MIL's money to pay for her own needs, you can try to sue her separately. However it probably won't work because the person she was stealing from was her mother, not you or your wife. This would have needed to be addressed while your MIL was alive.
You could talk with a lawyer to see if there are any grounds in your state for this situation.
- Costs and expenses of administering the estate — probate expenses, attorney fees, personal-representative expenses, etc.
- Reasonable funeral expenses
- Debts and taxes having priority under federal law
- Medical, hospital and nursing-home expenses of the final illness, including certain Medical Assistance estate-recovery claims
- Medical, hospital and nursing-home expenses incurred during the year before death
State taxes and other debts given priority under her state's law
CC debt is way low on the list.
I was an authorized user on my Aunt's bank cc (and I was her PoA). When I came in with her death certificate (as the Personal Representative of her estate) they immediately closed that card. Because it was the bank's own cc, they didn't let me walk out without paying off the balance.
Who is the executor of the estate? Are they using an attorney to help with probate?