Yesterday at my brother’s house an interesting question came up and I offered to post it here for discussion and share the opinions with him. He is executor for our Aunt’s estate. She passed away earlier this year after losing a lifelong battle with severe rheumatoid arthritis and a more recent problem with a very badly fractured arm that she was unable to recover from. She spent the better part of her final five months in-between a hospital and a rehab / nursing home facility as they tried to repair her arm (successfully) and stop the resulting infections (unsuccessfully). The problem he poses is this:
Her medical insurance was primarily Medicare. Coverage for the rehab center is limited to 100 days, which she exceeded. Her estate is then responsible for copays and coinsurance for those 100 days plus the entire amount for the days following end of coverage. The estate is being probated and has sufficient funds to pay the charges. My Aunt passed away in April and the first probate ruling was in early June. My brother has contacted the rehab facility a number of times asking for billing, and tells us after the most recent call the billing person actually laughed when he said he needed the final bill soon.
Probate establishes six months for creditors to present their claims. His question to me:
If the rehab facility does not present its bill within this period is he bound to set aside funds to pay them or should he just distribute the remaining assets to the inheritors as indicated in the will? Even if the law does not require payment to be made, is it ethical to deny that payment? On the other hand, is it ethical to deny the inheritors their lawful distribution once the creditor’s waiting period has been completed?
The law seems clear, so we are interested in views on the ethics here (please, no politics or policy discussions) and I’m posting in the “FIRE and money” forum because this is very much about money and ethics.
Her medical insurance was primarily Medicare. Coverage for the rehab center is limited to 100 days, which she exceeded. Her estate is then responsible for copays and coinsurance for those 100 days plus the entire amount for the days following end of coverage. The estate is being probated and has sufficient funds to pay the charges. My Aunt passed away in April and the first probate ruling was in early June. My brother has contacted the rehab facility a number of times asking for billing, and tells us after the most recent call the billing person actually laughed when he said he needed the final bill soon.
Probate establishes six months for creditors to present their claims. His question to me:
If the rehab facility does not present its bill within this period is he bound to set aside funds to pay them or should he just distribute the remaining assets to the inheritors as indicated in the will? Even if the law does not require payment to be made, is it ethical to deny that payment? On the other hand, is it ethical to deny the inheritors their lawful distribution once the creditor’s waiting period has been completed?
The law seems clear, so we are interested in views on the ethics here (please, no politics or policy discussions) and I’m posting in the “FIRE and money” forum because this is very much about money and ethics.