What happens to a joint credit card when someone dies?

Asked by: Daryl Sanford  |  Last update: January 25, 2025
Score: 4.6/5 (43 votes)

If you have a joint credit card account If you're jointly responsible for the account, your credit card is still active. Your name will be the new primary name on the account. You should still inform Discover that a joint account holder has passed away.

What happens to a joint credit card when one person dies?

After the death of a cardholder, their credit cards are no longer valid. If the card is part of a joint account and the deceased is the primary cardholder, you can't use the card — not even for legitimate expenses of the deceased, like a funeral or final expenses.

Do I have to pay my dead parents' debt?

Debt Responsibility: Generally, you are not personally responsible for your parents' debts unless you were a co-signer or joint account holder. When someone dies, their debts are typically settled from their estate (the assets they left behind).

Do credit card companies know when someone dies?

Financial institutions and other organizations to notify of a death. Report the person's death to banks, credit card companies, credit bureaus, and other financial organizations. And contact utilities and places where the person had memberships and subscriptions.

Do I inherit my husband's credit card debt if he dies?

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.

Credit Card Debt After Death: Who's Responsible?

44 related questions found

Can credit card companies take your house after death?

If the estate goes through probate

The tricky part of this process is how any outstanding debts that need to get paid will be settled. While the creditors can't claim the house itself, they can make claims in an amount that might require you to sell the house.

Why shouldn't you always tell your bank 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.

Are credit cards automatically cancelled when someone dies?

If your loved one had credit cards, those credit cards will need to be canceled once they pass away. This is not typically something that automatically happens once someone dies, so it's an important task to complete. Try to get organized beforehand with the names of accounts and passwords.

What debts are not forgiven upon death?

Medical debt and hospital bills don't simply go away after death. In most states, they take priority in the probate process, meaning they usually are paid first, by selling off assets if need be.

Is it illegal to keep utilities in a deceased person's name?

Yes, that is fraud. Someone should file a probate case on the deceased person.

What happens to hospital bills when someone dies?

Community property states: Spouses usually are held responsible for each other's debts in community property states. There are nine community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.

Can you get in trouble for using a dead person's credit card?

In conclusion, it's a crime to use a dead relative's payment cards, even if they're no longer able to use them. Anyone convicted of using a card to make fraudulent purchases will face years of imprisonment for deceit, not to mention an identity theft offense will appear on their criminal record.

Does the next of kin inherit debt?

If there's no money in their estate, the debts will usually go unpaid. For survivors of deceased loved ones, including spouses, you're not responsible for their debts unless you shared legal responsibility for repaying as a co-signer, a joint account holder, or if you fall within another exception.

Can creditors take money from a joint account after death?

Joint Bank Account Rules on Death

"It does not become part of the probate estate." Creditors may attempt to claim funds in a joint account to satisfy debts, but the funds are typically not considered part of the deceased's estate and should not be used to satisfy outstanding debts of the estate.

What happens if my husband died and my name is not on the mortgage?

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.

Who is the owner of a joint credit card?

Joint account holders are legally responsible for paying any charges made to the shared credit card. This means that both users have equal access to the card's line of credit and that no matter which cardholder makes a charge, both will be liable for any debt incurred.

What bills are forgiven at death?

Most debt will be settled by your estate after you die. In many cases, the assets in your estate can be taken to pay off outstanding debt. Federal student loans are among the only types of debt to be commonly forgiven at death.

What two debts Cannot be erased?

Perhaps the most common debts that cannot be discharged under any circumstances are child support, back taxes, and alimony. Here are some of the most common categories of non-dischargeable debt: Debts that you left off your bankruptcy petition, unless the creditor had knowledge of your filing. Many types of taxes.

Do I have to pay my deceased mother's credit card debt?

When a loved one passes away, you'll have a lot to take care of, including their finances. It's important to remember that credit card debt does not automatically go away when someone dies. It must be paid by the estate or the co-signers on the account.

What happens if I use my husband's credit card after he dies?

Even if you plan on paying the money back, you should not use the card. “If someone continues to use the account after the account holder's death they can be sued and held personally liable,” Creeden says.

How do credit card companies get notified when someone dies?

That notification can happen one of two ways — from the executor of the person's estate or from the Social Security Administration.

How do creditors know when someone dies?

According to California Probate Law, the first step in alerting creditors that someone has passed away is by completing a Notice of Administration to Creditors (form DE-157).

What not to do immediately after someone dies?

What Not to Do When Someone Dies: 10 Common Mistakes
  • Not Obtaining Multiple Copies of the Death Certificate.
  • 2- Delaying Notification of Death.
  • 3- Not Knowing About a Preplan for Funeral Expenses.
  • 4- Not Understanding the Crucial Role a Funeral Director Plays.
  • 5- Letting Others Pressure You Into Bad Decisions.

Can I withdraw money from a deceased person's bank account?

An executor/administrator of an estate can only withdraw money from a deceased person's bank account if the account does not have a designated beneficiary or joint owner and is not being disposed of by the deceased person's trust.

Can I still use a joint bank account if one person dies?

Joint bank accounts

If one dies, all the money will go to the surviving partner without the need for probate or letters of administration. The bank might need to see the death certificate in order to transfer the money to the other joint owner.