Contact Us Today 805-719-2246

Blog

Do I Have to Pay Off Husband’s Debts After He Dies?

Posted by Kent Keating | Dec 20, 2021 | 0 Comments

Losing your spouse is a painful, confusing time, but add to that repeated calls from an aggressive debt collector and a bad situation suddenly can get even worse.

After the loss of a spouse, before doing anything, take a sec to catch your breath and make sure you understand your rights and responsibilities regarding debt collection. You may not be liable for some debts, including even certain types of credit card charges, which may be forgiven at death. However, other debts can linger much longer and you may be hounded for debt collection.

Kiplinger's recent article entitled “Am I Responsible for Paying Off My Deceased Husband's Debt?” says you should understand that you're typically not personally responsible for paying off your spouse's debts because any loans would normally be paid off by his estate. This includes credit card debt, student loans, car loans, mortgages and business loans.

When a spouse passes away owing a debt, the debt doesn't immediately disappear. Instead, the estate is liable for paying any outstanding debts, and the personal representative, executor, or administrator will pay debts owed from the money in the estate. It's not paid from the surviving spouse's savings.  However, if the surviving spouse inherits certain assets from the deceased spouse through beneficiary designations or joint account ownership, and the estate assets are not enough to satisfy the creditors, they may try to make a claim against those assets that pass directly to the surviving spouse outside of the probate estate.

A surviving spouse may also be responsible for certain types of debts. For example, if the debt is jointly owned or he or she has co-signed a loan, the surviving spouse is obligated to continue to pay this debt. There are also states that require a surviving spouse to pay off any medical bills the deceased incurred before their death.  Debt collection can be very burdensome at this fragile time.

You should be familiar with the laws of your state, so you know your liability on all debts. This is because some community property states say you're responsible for the debt, even if it's not in your name. Community property laws make both spouses equally liable for debts incurred after the marriage has taken place. There are currently nine community-property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.

If the surviving spouse is a joint account holder on a credit card, he or she would need to continue to pay off the credit card because both spouses are both considered owners of the account and share equally in the ownership of any charges on the card.

Unfortunately, some debt collectors are inappropriately aggressive about debt collection. Therefore, if a debt collector says you're responsible for the account balance, but you think you're not, ask for evidence. Speak with an experienced estate planning or elder law attorney to understand in what situations you are obligated to pay and when you're not. Book a Call

Reference: Kiplinger (Nov. 28, 2021) “Am I Responsible for Paying Off My Deceased Husband's Debt?”

About the Author

Kent Keating

Kent W. Keating Founding Attorney Get to Know Kent Keating Serving Clients Throughout the Conejo Valley and Beyond Since 1986 Attorney Kent W. Keating has provided legal services to individuals, families and businesses primarily in the legal areas of Wills, Trusts, Estate Planning, Trust ...

Comments

There are no comments for this post. Be the first and Add your Comment below.

Leave a Comment

Contact Us Today

Law Offices of Kent W. Keating is committed to answering your questions about Estate Planning and Business Law issues in Westlake Village, California. We offer consultations and we'll gladly discuss your case with you at your convenience. Contact us today to schedule an appointment.

Menu