A very commonly asked question concerning credit card debt is what happens when you pass away. Many people have made the wrong assumption. They thought that when they pass away one day, their debt is forgiven. However, debt does not work that way. The reality is that if you die while still owning debt, your beloved ones may be held liable for the outstanding balances that you owe.
Is it fair for them to 'inherit' your debt?
You may think it is incredible but legally the creditors have the right to do so under certain circumstances. In general, many married couples have joint credit card accounts. As a result, they have joint debts. If you are a supplementary card holder and you pass away, it is possible for your loved one who acts as a primary card holder to be held liable for the occurred debt even if they may not have generated the debts themselves. The same thing applies to another scenario where your loved one cosigns on the credit card agreement with you. He or she is definitely responsible for the debt.
Death is unavoidable. Although it is impossible to prepare for an unexpected death, there are proactive steps that you can take to protect your family members financially. If you are knee deep in debt, you should make sure that your family members are well informed about the details of your debts. At least they have time for financial planning. As a responsible person, when you are still alive, make sure you put hard effort to get rid of your debt so that your loved one would not suffer.
For more information about debt prevention and management and debt management program, visit DebtManagementEssentials.com.
Who is responsible for debt after death?
I've seen familiar questions on this but the answers all say your estate liquidates your assets and so on. I want to know if someone passes that hardly has assets and is single, does another close relative have to pay off the debt?
In other words, is it suspicious for an elderly couple or sibling of the deceased to be responsible for their adult offspring's debt (they did not co-sign on anything)?
I didn't think it made sense.
Isn't there legal protection since you can't control someone else's spending habits?
Type of debt:
student loans
credit cards
Answer
Debt is not assumed nor carried over to other family memebers UNLESS the family member is a co-signer on a loan. Legally they are not responsible at all. In fact it goes as far as if my husband were to die and I inherit everything could his student loans come after me? The answer is no.
So to answer your question no one is responsible in the senerio you proposed and anyone that tells you differently is a liar
answer? Kindly help others and answer below.
Posted in 
Tags: 