Each state has its own variation of the filial responsibility law. For example, California Family Code section 4400 reads, “Except as otherwise provided by law, an adult child shall, to the extent of the adult child's ability, support a parent who is in need and unable to self-maintain by work.”
In the United States, the general rule is that minors (individuals under 18 years old) are not legally responsible for debts incurred, including medical bills. The responsibility typically falls on the parents or legal guardians.
Debt Ownership: Legally, parents are not responsible for their adult child's debt unless they co-signed a loan or are otherwise legally obligated. Bankruptcy: If an adult child files for bankruptcy, parents typically do not have to pay off that debt, unless they are co-debtors. Support vs.
And in nine “community property” states, including California and Texas, spouses may be equally responsible for debts incurred during the marriage, including medical debt. Other states may have laws that hold spouses responsible for paying certain essential costs, like health care.
If you do nothing and don't pay, you could be facing late fees and interest, debt collection, lawsuits, garnishments, and lower credit scores.
Uninsured Patients: Patients without health insurance are responsible for paying 100% of their medical bills. High-Deductible Health Plans (HDHPs): Patients with HDHPs are required to pay their medical expenses out-of-pocket until their deductible is met, which typically involves higher upfront costs.
Other debts and credit agreements
If your child left any debts or outstanding credit agreements, no one else should be liable for them unless the debt was taken on jointly or someone acted as a guarantor.
This is one of the duties that you have, and debts often need to be paid before the remaining assets can be passed on to the beneficiaries. But debt is not inherited like assets are, so you and the other beneficiaries do not have to pay personally.
The Duration of Parents' Legal Obligations: The Basics
In most states, parental obligations typically end when a child reaches the age of majority, 18 years old. But, check the laws of your state, as the age of majority can be different from one state to the next.
According to Aging Care, the filial law holds adult children of an indigent parent liable for paying medical debt. Some sons and daughters could unknowingly find themselves on the hook for their deceased parent's unpaid health care bills even though they did not have any shared responsibility.
No Reporting Paid Medical Debt: As of July 2022, the three major credit reporting agencies have agreed to not include paid medical debt on consumers' credit reports.
“Normally, if you're 18 or older, you're considered the responsible party, even if you're insured under your parents' policy,” Gundling said.
Community property states: Spouses usually are held responsible for each other's debts in community property states. There are nine community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.
Under the law, the requirement to make adult coverage available applies only until the date that the child turns 26.
The states that have such laws on the books are Alaska, Arkansas, California, Connecticut, Delaware, Georgia, Idaho, Indiana, Iowa, Kentucky, Louisiana, Maryland, Massachusetts, Mississippi, Montana, Nevada, New Hampshire, New Jersey, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Dakota, ...
In most states, for a child to be held accountable for a parent's bill, all of these things would have to be true: The parent received care in a state that has a filial responsibility law. The parent did not qualify for Medicaid when receiving care. The parent does not have the money to pay the bill.
Create your own estate plan today
Many Baby Boomers plan to pass down inheritances to their loved ones, but some aren't so lucky. It may come as a relief to find out that, in general, you are not personally liable for your parents' debt. If they pass away with debt, it is repaid out of their estate.
Most debt isn't inherited by someone else — instead, it passes to the estate. During probate, the executor of the estate typically pays off debts using the estate's assets first, and then they distribute leftover funds according to the deceased's will. However, some states may require that survivors be paid first.
Generally, parents would be responsible for their adult child's debts only if they had signed an agreement with a medical provider to cover them. Q: As a 78-year-old person with multiple sclerosis, I have many out-of-pocket medical expenses that I deduct from my income taxes.
If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.
When someone dies, their debts are generally paid out of the money or property left in the estate. If the estate can't pay it and there's no one who shared responsibility for the debt, it may go unpaid. Generally, when a person dies, their money and property will go towards repaying their debt.
In most cases, the deceased person's estate is responsible for paying any debt left behind, including medical bills. If there's not enough money in the estate, family members still generally aren't responsible for covering a loved one's medical debt after death — although there are some exceptions.
In essence, medical coders lay the foundation by providing the necessary codes, while medical billers use those codes to process payments and manage patient accounts. Understanding both roles is crucial, as they work together to ensure the financial stability of healthcare providers.
Keeping any type of key documents such as a medical bill, a record or other personal item should be held on to for anywhere from three to seven years after the death of a loved one.