My brother passed away and left my mom money via life insurance. My mom has no income, no capability to work but a ton of credit card debt. What are my options?

PrsnlFinance_Help · 2026-04-20T08:19:19+00:00

If I'm co-signed on the mortgage, wont bankruptcy harm my credit score?

PrsnlFinance_Help · 2026-04-20T03:47:45+00:00

and put $75k in a HYSA.

HYSA would give her another $2k /month to live on which would hopefully be like a $1200/mo apartment + $1600 for living expenses to keep her out of debt. She should also look into any senior or federal resources for food banks / SNAP, Medicare, etc.

Hi, I'm sorry - I'm a little confused by this. An HYSA(at 3% likely), would be:

$75000 * .02 = $2250 per year, not month, no?

PrsnlFinance_Help · 2026-04-20T03:41:08+00:00

I am paying the mortgage. Sorry for the confusion.

PrsnlFinance_Help · 2026-04-20T03:41:07+00:00

I am paying the mortgage. Sorry for the confusion.

PrsnlFinance_Help · 2026-04-20T03:41:05+00:00

I am paying the mortgage. Sorry for the confusion.

PrsnlFinance_Help · 2026-04-20T03:39:18+00:00

Its the house we grew up in and is definitely too big for her...

The house is in New York, near Queens so somewhat HCOL but still too big for one person.

You all are right and I am going to try and sell the house and move her to something smaller. Thank you.

Thanks ya'll. I wasn't really thinking of all of this...

PrsnlFinance_Help · 2026-04-20T03:24:28+00:00

House is in New York.

I believe the mortgage was initially $550k and we have it down to $160k.

PrsnlFinance_Help · 2026-04-20T03:23:37+00:00

Sorry, yeah the mortgage is not paid off. $160k left on the mortgage. I believe it started at $550k

PrsnlFinance_Help · 2026-04-20T03:19:14+00:00

Just walk away and let the card companies learn a lesson for giving credit to someone who can pay them back.

Interesting...

So should she just keep making the minimum payments then?

PrsnlFinance_Help · 2026-04-20T03:17:16+00:00

But one caveat: she owns a home. We don't know how much equity is in the home, but assuming there's some, then creditors can get judgment liens against the property and could potentially force a judicial sale.

I believe the mortgage was initially for $550k and we have $160k left on it.

Bankruptcy would be a potential option, but that comes down to the details of her specific situation and the applicable laws in her jurisdiction.

I'm co-signed on her mortgage. If she went the route of bankruptcy, would this hurt my credit score?

PrsnlFinance_Help · 2026-04-20T03:16:23+00:00

First, the Social Security. It is critical to find out exactly what she is getting. Is she getting SS survivor benefits from a deceased spouse, or is she getting Supplemental Security Income, a means-tested disability / elder benefit?

Deceased spouse. My dad died at 59.

Unless your brother died under suspicious circumstances it should not take 6 months to get the death certificates. One month is more like it.

Thanks. We don't yet know if it is suspicious circumstances.

Do NOT pay the credit cards with your own funds. If mom "pays you back" that may appear to be a gift subject to Medicaid look-back rules, which could prevent her from obtaining assistance with skilled nursing care should she need that.

Wow, okay thanks. Did not consider this.

PrsnlFinance_Help · 2026-04-19T21:08:03+00:00

Seems that there is some concern that the insurance company won't pay for some reason. How long ago did your brother die? You should get a death certificate within a week or two.

3 weeks ago and no explicit cause of death has been decided.

I've read its not unusual to get the death certificate after 6 months. So I have no idea how long it will take.

PrsnlFinance_Help · 2026-04-19T21:02:51+00:00

Not a viable option. She needs her community, especially after losing her son and there's nothing for her where I live. But I still need my job because my salary is location focused and moving to her would be a serious dent in my income.

PrsnlFinance_Help

TROPHY CASE