Moulton, TX Estate Planning Law Firms & Lawyers

Your mother's estate is responsible for paying her debts. If there are insufficient assets in her estate to pay all of her debts, unless the debt is joint such as a co-signed loan, you have no personal obligation to pay for your mother's debts. Some creditors and collection agencies will imply that you as a relative have a legal obligation to pay; however, this is a collection tactic and is simply untrue. Where the estate is insolvent, Wisconsin Statutes section 859.25 specifies the priority in which debts and expenses are to be applied: 1. Costs and expenses of administering the estate. 2. Reasonable funeral and burial expenses. 3. Provisions for the family under certain limited circumstances. 4. Reasonable and necessary expenses of the last sickness, including compensation of persons attending your mother. 5. All debts and taxes owed to the government. 6. Wages due to employees earned within 3 months before the date of death. 7. Property assigned to a surviving spouse. 8. All other claims. You should explain to your mother's creditors that there are no assets in her estate available to pay and supply any documentation requested by the State of Wisconsin with regard to her nursing home care expenses.

That seems odd if you plan to act jointly.  However, if the trust agreement does not state that you must act jointly, your sister could act without you.  If she made a mistake, you could be financially liable as well.  Perhaps you should have it reviewed by an attorney and take steps, if needed, to limit your liability.

Children are not responsible for the unknown debts of their parents. Your father's estate will be responsible for his debts and your mother could be responsible for your father's debts.