Who Is Responsible for Your Credit Card Debt After Your Death?
Responsibility for your credit card debt after your death is determined by federal and state law. The legitimacy of the debt and the payment priority is determined by the executor of your estate in accordance with the laws. Typically, family members are not responsible for paying your credit card debt from their own assets, except in certain circumstances.
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Estate
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Your estate is responsible for your credit card debt after your death if you are the sole account owner. The executor of your estate liquidates assets to cover all debts, including mortgages and other liens, vehicle loans and credit card debt. If your estate does not have sufficient funds to cover the credit card debt that is solely in your name, it will go unpaid.
Joint Account Owner
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Anyone who is also listed as the account owner on your credit cards is also responsible for the debt. If your estate cannot cover the debt, the other joint account owner become solely responsible. In order for the joint account owner, or co-signor, to be held liable for the credit card debt, she must have signed the original application. Authorized users who did not sign the application are not responsible for the debt after the account owner dies.
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Community Property
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If you live in a state that employs community property laws, such as Alaska, Texas, California, Nevada and New Mexico, your spouse may be liable for the credit card debt after your death. State community property laws vary; check with your state's laws to determine if debts, as well as assets, are considered community property.
Credit Card Debt Collection
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Even if state and federal law determines that your credit card debt is your sole responsibility, debt collectors may contact your spouse or the executor/administrator of your estate regarding payment after your death. According to the Federal Trade Commission, debt collectors may not discuss a deceased person's debt with anyone else, unless the account owner was a minor child, then the collector may talk with the parents or guardian. Collectors are legally allowed to contact neighbors and other relatives, but only to ascertain the contact information of the deceased's executor. Debt collectors are not allowed to harass family members and third parties for payment of a credit card debt to which they have no liability.
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