Am I liable for the debts of a deceased parent or spouse?

If your parent or spouse passed away and left any debts, you may be liable for them. In the case of a spouse, it usually depends on whether you shared credit card debt, or have other shared accounts. In the case of a parent, whether or not you have to pay their debts depends on a number of factors such as whether you were a co-signer on a credit account responsible for the debt.

Debt Collection and Surviving Spouses

If you and your spouse had a joint credit card, you would be responsible for paying the credit card debt after your spouse dies even it your spouse actually made all the charges without your knowledge. On the other hand, if a credit card account was opened with your spouse’s information and you were just issued a card as a user, meaning, you didn’t sign the credit card agreement, you might not be liable for the credit card debt when your spouse dies. This is especially the case if your spouse made the charges.  You will be liable for any debts you and your spouse entered into together, including medical expenses, if you also signed the agreement to pay for the expenses. In some community property states you might be liable for all of your spouse’s debts if they were incurred during the marriage, so check your state law.

Find the right lawyer for your legal issue.

Personal Injury Divorce Auto Accident Injury DUI Real Estate Criminal Defense Prenuptial Bankruptcy Child Support Immigration Family Law Employment Copyright Traffic Wills Civil Law Elder Law Workers Comp Social Security Disability

 Secured with SHA-256 Encryption

Collecting on the Estate After Death of a Spouse

If you aren’t liable for a debt under your state law, your spouse’s creditors can’t try to collect debts from once shared property that belongs to you as the surviving spouse. This includes real property, bank accounts, investment assets, and so on. Your spouse’s creditors have to collect the debt from your spouse’s estate. The assets the creditor can go after to pay debts depends on how they were owned and whether they pass to you on your spouse’s death by operation of law. For example, a creditor can’t claim part of a life insurance payment or pension fund benefit you receive as beneficiary or from property that passed to you by right of survivorship.

Assets Creditors Can Claim after the Death of a Spouse

Creditors can claim payment from any assets that belonged to your spouse and that are part of the probate estate or that are held in a Living Trust your spouse set up. Property in probate can include funds held in a joint bank account with you and other property held jointly, but without a right of survivorship. This means that you may end up paying for your spouse’s debts out of the inheritance you expected to get for yourself, but you usually won’t have to pay from your separate assets.

Debt Collection Laws and Surviving Children

The question of your parent’s debts is different. Children aren’t required to pay their parent’s debts simply because they are related to them. There are a few situations where children might be responsible for their parent’s debts, though.  If a parent gave property to a child shortly before the parent’s death, creditors may make a claim against that property if the property transfer left too little money in the estate to pay the parent’s debts. This claim would not be made because the child is responsible for the parent’s debts. It would be based on a claim that the property transfer was invalid or fraudulent (intending to defraud creditors). The child in that situation would not be liable for any amount of debt beyond the value of the property that was transferred.

Find the right lawyer for your legal issue.

Personal Injury Divorce Auto Accident Injury DUI Real Estate Criminal Defense Prenuptial Bankruptcy Child Support Immigration Family Law Employment Copyright Traffic Wills Civil Law Elder Law Workers Comp Social Security Disability

 Secured with SHA-256 Encryption

Debt Collection and Co-Signers

Any party might be liable for debts that they’ve agreed to guarantee. For example, if the child acted as a co-signer or promised to pay housing costs for the parent if the parent could not, then the child would be responsible for those debts. This is not because of the parent/child relationship, but because the child took the debts on as his or her own, and so is legally responsible to pay them.

Getting Legal Help

For questions about whether or not you are liable for the debts of a deceased spouse or parent, contact an experienced attorney with questions.

Case Studies: Debt Liability After Death

Case Study 1: Debt Collection and Surviving Spouses 

John passed away, leaving credit card debt. Sarah, the surviving spouse, may be liable for it. If they had a joint card, Sarah is responsible, even if John made all charges without her knowledge. But if Sarah was just a user and didn’t sign the agreement, she might not be liable. The outcome depends on their arrangement.

Case Study 2: Collecting on the Estate After Death of a Spouse 

Following John’s death, creditors can’t collect from Sarah’s assets if she isn’t liable under state law. Creditors pursue John’s estate and assets. How they collect depends on ownership and transfer of assets by law. Sarah’s assets as a surviving spouse are protected.

Case Study 3: Debt Collection Laws and Surviving Children 

Children aren’t obligated to pay a deceased parent’s debts by relation. Creditors may make a claim against assets if a parent transferred property to a child before death. The child’s liability is limited to the value of the transferred property, not the entire debt amount.

Case Study 4: Debt Collection and Co-Signers 

Sarah, John’s daughter, co-signed his loans. After John’s passing, Sarah is legally responsible for the debts she guaranteed as a co-signer. Her liability is based on her agreement, not the parent-child relationship. Understanding her obligations is crucial, seeking legal assistance is advised.

Find the right lawyer for your legal issue.

Personal Injury Divorce Auto Accident Injury DUI Real Estate Criminal Defense Prenuptial Bankruptcy Child Support Immigration Family Law Employment Copyright Traffic Wills Civil Law Elder Law Workers Comp Social Security Disability

 Secured with SHA-256 Encryption