# Who Is Responsible For Paying A Deceased Person's Credit Card Debt?



## OneEyedDiva (Feb 23, 2017)

Are survivors responsible or the executor? What if the card was held jointly with someone? Read this article posted on the Legal Beagle website for answers.
http://legalbeagle.com/7452736-pays-deceased-credit-card-debt.html


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## dpwspringer (Feb 23, 2017)

Just a little rambling... I didn't see any surprises there, did I miss something? Taxes and debt must be cleared first before any assets can be distributed to heirs and if you are a joint credit card holder then you are personally on the hook for that debt. I guess it could get sticky if someone wanted to dispute whether the debt from a joint credit card came from the estate or from the affected individual; but in the case where the estate doesn't have the proceeds to cover it it is clear you are stuck with it. In general joint accounts are risky/tricky and that isn't really news either, we know that and we know unsuspecting people get taken in and screwed with them.


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## Knight (Feb 23, 2017)

As I understand it the executor is responsible for using the assets to pay for outstanding debt. Whatever is left after all debt is setteled is distributed to heirs. 
Not all states tax inheritance or asset value so if someone is expecting to get an inheritance they should check their state concerning inheritance laws.

Then there is the use of medicaid. States vary on collecting any assets left by a medicaid user. Even transfer of assets before signing up for medicaid can be challenged. 

Something we found out that may make a differance to others. Wills more often than not contain boiler plate language. Knowing what you want to have happen and spelling that out in a will can save your heirs a lot of grief when they are already grieving. 

Bottom line, dying without a will complicates matters for heirs.


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## Deucemoi (Feb 23, 2017)

Never married, no wife, no ex, no kids, no family. Youngest brother has not communicated with me over 8 yrs. I have no will, no assets of any value. I have asked my friend to act on my behalf but he declined. So who informs the VA, the bank, the SS and who pays for the disposal of the body??


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## Knight (Feb 23, 2017)

Deucemoi said:


> Never married, no wife, no ex, no kids, no family. Youngest brother has not communicated with me over 8 yrs. I have no will, no assets of any value. I have asked my friend to act on my behalf but he declined. So who informs the VA, the bank, the SS and who pays for the disposal of the body??



The state will.

This as a source of general info might help.
http://www.oregonlive.com/special/index.ssf/2009/06/disposition_of_unclaimed_bodie.html

Like it or not what you described about yourself puts you in the unclaimed body category. The state may try to contact your brother so maybe you should give him a heads up about what you expect to happen.


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## Myquest55 (Feb 26, 2017)

Thanks for sharing that.  One of those little details that we probably knew but forgot along the way.  I have passed it on to all my friends!  Will copy and add it to "The Book" that I have made for those left behind.  I have created a binder with a copy of every insurance policy, car title, bank account, investment account, IRA, etc. as well as who to contact and what to do when we go.  I thought it might help to have it all in one place.


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## Knight (Feb 26, 2017)

Myquest55 said:


> Thanks for sharing that.  One of those little details that we probably knew but forgot along the way.  I have passed it on to all my friends!  Will copy and add it to "The Book" that I have made for those left behind.  I have created a binder with a copy of every insurance policy, car title, bank account, investment account, IRA, etc. as well as who to contact and what to do when we go.  I thought it might help to have it all in one place.


We have done the same and update it about every 3 months as things relative to our portfolios change. All 3 sons have copies of our wills, DNR paperwork, signature cards filled out at the bank where we have a safe deposit box. Pre paid burial expenses another item we thought was needed. 

With everything in place, the law office set to process the wills, no probate will be needed. Clean, easy no grief for them to try to figure out the legal requirements, & asset distribution. 

Just like presents for the grandkids came in the form of buying stock for them in a dividend paying guardian account made it possible to show no preference. Supplying them now with knowledge of what to expect when we are gone should eliminate what is so often in the news, siblings fighting over whatever their parents left.


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## OneEyedDiva (Feb 27, 2017)

Knight said:


> We have done the same and update it about every 3 months as things relative to our portfolios change. All 3 sons have copies of our wills, DNR paperwork, signature cards filled out at the bank where we have a safe deposit box. Pre paid burial expenses another item we thought was needed.
> 
> With everything in place, the law office set to process the wills, no probate will be needed. Clean, easy no grief for them to try to figure out the legal requirements, & asset distribution.
> 
> Just like presents for the grandkids came in the form of buying stock for them in a dividend paying guardian account made it possible to show no preference. Supplying them now with knowledge of what to expect when we are gone should eliminate what is so often in the news, siblings fighting over whatever their parents left.



You are right Knight.  Thank you for the good information. I created a joint email that my son and grandson can also log into. Since there is some sensitive information listed, the email is under an alias and we use nicknames. Since some information is sensitive, things are coded a particular way. I have documents that list what companies my investments are with, what banks I use and have a spreadsheet showing who gets what from each brokerage and insurances. At least one hard copy of my accounts and beneficiary designations are in a secret place they know about. I go over these things with them at least twice a year, especially when updates take place. I have my will, living will and a POA in place, as well as special POA designations with two of my brokerages in case my son needs to access money should I have to go into a nursing home. He also knows how to get money from other accounts to funnel into our joint checking should he need more. Most of my bills are on automatic payment. Obviously one has to really trust his/her child(ren) to allow access like that and my son and grandson have never given me any reason to believe they are anything other than trustworthy. For that I am thankful.


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## Aurora (Mar 4, 2017)

From personal experience, the executor is responsible, at least in Illinois.
Don't know where you live. I recommend you do the obvious and call an
estate attorney for free advice on the phone.


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## OneEyedDiva (Mar 7, 2017)

Aurora said:


> From personal experience, the executor is responsible, at least in Illinois.
> Don't know where you live. I recommend you do the obvious and call an
> estate attorney for free advice on the phone.


Thank you Aurora: But this post was informational for everyone else. I've got the situation covered, as detailed in my reply to Knight. I've been a member of Legal Shield for almost 20 years (formerly Pre Paid Legal) and I have access to information, advice and other member benefits 24/7 if need be.


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## terry123 (Mar 30, 2017)

I just went through this with a dear friend passing.  He named me executor of his estate.  I consulted with a probate lawyer who guided me .  I paid all his debts first which were not many, then the only remaining asset, the bank account was divided between the heirs in his will.   To avoid a lot of problems, it is best to have a "pay on death" added to all accounts or a beneficiary as it will avoid going through probate.  He very wisely had beneficiaries or pay on death clauses on everything except this one small bank account. Probate went very smoothly. We are in Texas so Texas probate laws applied.


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## debodun (Apr 13, 2017)

I had a situation a few years ago where I volunteered to be the administrator of my aunts estate. BIG MISTAKE!!! I hadn't been in close contact with her for years and I thought she would have a lot of money because she was a professional artist (see some examples of her paintings). What the estate attorney didn't tell me before I volunteered was that she died intestate, had Alzheimer's, obtained a credit card and ran up huge bills and never paid them off. She also had a $40K hospital bill. Her only asset at the time of her death was a modular home in poor condition on a quarter acre was valued at $23K. Her debts exceeded the value of her estate! What I had to do was sell the property, clean out the house, have estate sales, etc. When all assets were collected and totaled, the attorney negotiated a settlement with the hospital when agreed to accept $10K in payment. The, after paying off other debts, I had to share what was left with two other inheritors. In the end, after all the work and worry, I received around $3K (and that included an administrator's fee) and whatever I wanted from her house. The other distributees received a little over $1K.


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## Iodine (Apr 13, 2017)

Am I correct in saying that if the person had no assets when they died than no one is responsible for payment of their debts?


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## dpwspringer (Apr 14, 2017)

Iodine said:


> Am I correct in saying that if the person had no assets when they died than no one is responsible for payment of their debts?


That's the way I understand it, with the exception of joint accounts, co-signers, etc  where someone assumed financial responsibility for whatever reason.


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## Butterfly (Apr 14, 2017)

dpwspringer said:


> That's the way I understand it, with the exception of joint accounts, co-signers, etc  where someone assumed financial responsibility for whatever reason.



I believe that is correct, except if the deceased lived in a community property state (such as New Mexico), the spouse might be responsible for debts incurred by the deceased during their marriage.


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## Robusta (Apr 14, 2017)

You ain't gonna care one way or the other.  Party spend and leave a mountain of debt!!!!


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## Dragonlady (Apr 27, 2017)

Myquest55 said:


> Thanks for sharing that.  One of those little details that we probably knew but forgot along the way.  I have passed it on to all my friends!  Will copy and add it to "The Book" that I have made for those left behind.  I have created a binder with a copy of every insurance policy, car title, bank account, investment account, IRA, etc. as well as who to contact and what to do when we go.  I thought it might help to have it all in one place.



Excellent idea. Never thought of it myself. Will probably do something like it myself


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## JustBonee (May 5, 2017)

Iodine said:


> Am I correct in saying that if the person had no assets when they died than no one is responsible for payment of their debts?



I believe that to be true.   They will try to squeeze/harass  any living relative for money for any debt,  but they cannot get any payment from someone who is not on an account.  
This happened to me many years ago, and I stood my ground.  They finally gave up and left me alone.


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## HarryH (May 12, 2017)

Bonnie said:


> I believe that to be true.   They will try to squeeze/harass  any living relative for money for any debt,  but they cannot get any payment from someone who is not on an account.
> This happened to me many years ago, and I stood my ground.  They finally gave up and left me alone.



Probably everyone understands the Medicaid look back rule, but may have overlooked the Filial Responsibility Laws - https://www.nerdwallet.com/blog/banking/broke-parents-medical-debts/

The article makes mention of the rarity and gives a lone example of infrequency. The question is whether it will continue to be a rarity. States with the law don't seem to be in any big hurry to change them.

So it depends on the state, etc.


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## OneEyedDiva (May 22, 2017)

HarryH said:


> Probably everyone understands the Medicaid look back rule, but may have overlooked the Filial Responsibility Laws - https://www.nerdwallet.com/blog/banking/broke-parents-medical-debts/
> 
> The article makes mention of the rarity and gives a lone example of infrequency. The question is whether it will continue to be a rarity. States with the law don't seem to be in any big hurry to change them.
> 
> So it depends on the state, etc.


Good article Harry. Thank you for posting.


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