Survivors' Responsibilities for Credit Cards
The death of a loved one is difficult enough without having to worry about how you will repay debts that your family member may have accrued. Credit card debt can be particularly difficult for survivors to deal with, as it may or may not fall to survivors to repay their family member's credit card debt.
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Jointly Held Credit
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When a family member dies, your responsibility for his debt often hinges on whether you were a party to that debt. If your family member shared credit card accounts with you, you will be responsible for the debt, but only if you are listed as a joint holder on the credit card; being an authorized user on the account does not make you responsible for the debt.
Surviving Spouses in Community Property States
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If you are the surviving spouse of a husband or wife who left credit card debt, your responsibility for the debt will be determined by state laws. Those who live in community property states -- Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin -- are unfortunately liable for any debt acquired by a spouse during the time of the marriage, regardless of whether the debt was in both spouses' names or the surviving spouse knew the debt existed.
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Surviving Spouses in Other States
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Surviving spouses in states that do not recognize community property laws will not be held responsible for a deceased spouse's debt, even if the debt was acquired during the duration of the marriage. While the credit card company may petition the estate for repayment of the debt, the surviving spouse will not be required to repay the debt personally; rather, any payments would come from the estate, if the estate was left to the surviving spouse and if the credit card company can obtain a judgment against the estate.
Nonspousal Survivors' Responsibilities
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Like surviving spouses in noncommunity property states, nonspousal survivors, such as children or other relatives, are not responsible for a loved one's debt just by virtue of survivorship. Only the proceeds of any estate left by the deceased may be subject to debt service, meaning that any monies left to survivors in a deceased relative's estate may be petitioned by credit card companies for repayment of debt. If there is no estate, or if the credit company cannot obtain a judgment against the estate, survivors will not be responsible to repay a deceased relative's credit card debt personally.
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