If you're not responsible for a debt, debt collectors may still contact you if you're a surviving spouse or oversee the estate, but it's illegal for debt collectors to suggest you're responsible for paying from your own money. It's also always illegal for them to harass you about paying the debt.
Again, the answer to this question is most often “no.” Family members, including spouses, are generally not responsible for paying off the debts of their deceased relatives. That includes credit card debts, student loans, car loans, mortgages or business loans.
Usually, children or relatives will not have to pay a deceased person's debts out of their own money. While there are plenty of exceptions, common types of debt do not automatically transfer to heirs when someone dies.
If you contact the bank before consulting an attorney, you risk account freezes, which could severely delay auto-payments and direct deposits and most importantly mortgage payments. You should call Social Security right away to tell them about the death of your loved one.
You are generally not responsible for someone else's debt. When someone dies with an unpaid debt, if the debt needs to be paid, it should be paid from any money or property they left behind according to state law. This is called their estate.
Debts either spouse incurred during marriage
Property acquired during marriage is liable for the debts of either spouse. So, a creditor whose claim arose during the marriage can collect your spouse's unpaid credit card debt from both halves of the community property, including your wages.
If your spouse passes away, but you didn't sign the promissory note or mortgage for the home, federal law clears the way for you to take over the existing mortgage on the inherited property more easily.
If your husband passed away and you are not listed on his bank account, the account will likely go through probate unless it is a joint account or has a named beneficiary. Probate is a legal process where the court oversees the distribution of assets.
Typically there is a primary cardholder and an authorized user. When the primary cardholder dies, credit card issuers usually close the account, often within a few weeks. Issuers normally find out about the death from the person settling the estate or from the Social Security Administration.
As soon as you are able, the first thing you should do after your spouse dies is: Locate any estate planning documents – These might include their most recent last will and testament, any trust documents, deeds and other property documents, records of payable-upon-death accounts, insurance policies, etc.
For example, retirement accounts, IRAs, both qualified and depending on state laws, and some estate plans. Those are generally exempt, although there's special rules for those. Life insurance, that's another exemption. Creditors in many circumstances can't reach assets.
Debt collectors typically can't pursue you for debts that are solely in your spouse's name if you live in a common law state. However, if you live in a community property state or your spouse was a co-signer or co-borrower on the debt, they could be held liable.
In general, according to both the consumer protection bureau and the Federal Trade Commission, you are not responsible for someone else's debt. Rather, a deceased person's estate — the legal term for someone's money and property — is responsible for paying any medical bills or debts, as directed by state law.
If your spouse built up entitlement to the State Second Pension between 2002 and 2016, you are entitled to inherit 50% of this amount; PLUS. If your spouse built up entitlement to Graduated Retirement Benefit between 1961 and 1975, you are entitled to inherit 50% of this amount.
While some marital assets pass by default to the surviving spouse, some assets pass to the surviving spouse by way of beneficiary designations. There are two types of designations: payable-on-death (POD) designations and transfer-on-death (TOD) designations.
If your spouse dies, do you get both Social Security benefits? You cannot claim your deceased spouse's benefits in addition to your own retirement benefits. Social Security only will pay one—survivor or retirement. If you qualify for both survivor and retirement benefits, you will receive whichever amount is higher.
You are generally not responsible for your spouse's credit card debt unless you are a co-signer for the card or you're a joint cardholder on the account.
You can protect yourself from your spouse's debt by signing a prenuptial agreement before you get married and avoid taking out joint credit. It's especially important to protect equity in your home during a divorce to ensure you get your fair share, since this is likely the largest asset you have.
In most cases, the answer is “No — you are not responsible for the debt of a deceased spouse.” However, there are exceptions, and your deceased spouse's estate likely is responsible for paying those debts.
If you live in a community property state, you probably will be responsible for debts accumulated by your spouse during the marriage. (These states are California, Texas, Arizona, New Mexico, Nevada, Washington, Idaho, Wisconsin, and Louisiana, while Alaska, South Dakota, and Tennessee make it optional.)
In almost every case, you will not be held responsible for debt your spouse has incurred before your marriage. The only exception to this rule is if you become a joint account holder after marriage.
Yes—but only if you co-signed on the debt or are a co-owner based on California's community property laws, as detailed above. Another example: An adult child can inherit debt if their name is on a loan or credit cards that their parent had when they died.