9 Things to Know About Debt After Death

Coping with death isdifficult enough without the decedent’s creditors calling you forcollection.  Here are nine things youshould know about debt after death:

1. In most cases, heirs are not responsible for adecedent’s debts unless they are jointly liable on the debt.  This doesn’t mean creditors won’t still tryand collect from them.
2. The obligation to pay a decedent’s debts transfers tothe estate.  Therefore, debt collectionrequests should be directed to the executor or administrator.
3. To prevent identity theft of the dead, the executorshould notify creditors as soon as possible as well as the big three creditreporting agencies. 
4. Co-signers will be liable for debts while authorizedsigners or additional cardholders on credit card accounts are not.  Authorized users should discontinue use ofthe card after the death of the main cardholder.
5. Wait to distribute assets until after the estate hassettled all debts.
6. If you are a joint account holder on the credit cardof a decedent and having trouble paying bills, ask the creditors about available options.  This could giveyou more time to get organized.
7. Creditors can be forced to write off debt if theestate has more debts than assets.
8. Surviving spouses in community property states may beliable for debts even if they didn’t agree or know about them.
9. Contact a consumer law or probate attorney if youhave any doubts.

See TrishaSherven, Debt After Death: 10 Things YouNeed to Know, Money Talks News, Oct. 7, 2013.