Credit Help Center

Something that always is going to happen to you in life is death.  Let’s face it, that old saying goes that death and taxes are always going to be around and there are no ways around it.  With today’s FAQ comes a great question that many people have their mind.

Does debt get passed on after someone dies?

If you have a parent for example that is in a lot of debt, you may be worried because you’re thinking that if they die, are you going to be responsible for that $1,000 credit card bill?  To make things short, there’s a good chance that you’re not going to be liable for the debt.

Your parent’s debt after they die

Let’s say that your parents have $1,000 in credit card debt and they both pass away over time.  Once they die, that debt will more than likely won’t pass onto you.  The only way this debt will pass onto you is if you had your name on the loan or them.  For example, if you co-signed a credit card with your Mom, you will still be responsible for that.

Now, if your parents had a paid off home, car, etc, then the estate will more than likely have to sell off some of the assets so that you could pay off their debts.  This is why it’s best to get an estate attorney to help you with the matters.

Debt with your significant other

If you’re married and let’s say that your wife/husband passes away.  Now, since you’re legally a “party” or “one” when you’re married, you’re going to find that you will be responsible for all debts.  If you have children and you both die, then your children will more than likely not bring on your debts.  Again, the only way is if they have their name on the credit card, mortgage payment and more.

Debt that can’t be recouped by the credit card company is going to be written off.  It’s a good idea to talk with an estate attorney so that he/she can advise on what’s best to do for you.  Chances are if there are assets with the estate, they will have to go toward items such as the credit card payments and more.  If there is a mortgage left over, you will have to more than likely pay the mortgage off by selling the home, or again, you will have to come up with items to sell.

What should I do with these accounts after death?

After the death has happen, you will have to notify the creditors in regards to the death.  They are going to ask for a death certificate to prove the death itself.  This is going to have to be certified through the state.  When you notify the credit card companies, etc, you’re going to want to make sure that you make copies of all the papers that you sent out.  This way, if something does happen in the future, you’re going to have physical proof.

NOTE: This isn’t legal advice, nor do I pretend to be a lawyer.

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