It’s hard enough when your spouse dies, but it’s overwhelming to have to worry about debt. When someone dies on credit card debt, loan, or other obligation, what is the liability of that spouse?
Debt and the spouse of the deceased
According to the Federal Trade Commission (FTC), if your spouse dies, you are generally not liable for their debts. But that doesn’t mean that your debt will disappear.
The creditor may attempt to collect debts from the money or property left by the deceased. In other words, their property pays debt.
If your spouse has a will, the appointed executor is responsible for using the property to pay the debt. However, if your spouse does not have a will, the probate judge will decide how the property should be distributed. They select an administrator to make these decisions.
However, if you are the person in charge of your debt, there are a number of situations.
When are you responsible?
The debt does not go away when the spouse dies, and sometimes you may be responsible for paying it.
If you co-sign a loan like a car loan or a mortgage, you are responsible for paying it back in full. If you have not co-signed the loan, you will not be liable.
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Some state laws may require an individual to pay the debts of his deceased spouse.
Some states offer individuals the option to opt for community property systems or designate certain assets as community properties. These states are Alaska, Florida, Kentucky, Tennessee and South Dakota.
Is the surviving spouse liable to pay the medical obligations of the deceased spouse? Many states have the “Doctrine of Essentials” Act. The Act is responsible for the necessary expenses, including medical expenses. It is rooted in customary law that spouses are responsible for each other.
Credit card debt
If you and your spouse have a joint credit card, you are responsible for paying the balance. But what happens if you are an authorized user? According to the Consumer Financial Protection Agency, you are generally not obligated to pay the credit card liability of your deceased spouse if you are an authorized user.
What happens to my deceased spouse’s debt?
Your deceased spouse’s debt will not go away. Your spouse’s property is liable to pay after death.
In the event of no liability, the deceased’s property and cash holdings cover the liability. Payments will be made in order of priority, as outlined in state law.
Remember that if creditors collect from real estate, they have little money to the beneficiaries.
The assets of the deceased who are exempt
State law usually determines which assets are exempt. However, since laws vary from state to state, it is important to discuss the situation with a real estate lawyer.
Some creditors must amortize their obligations and not receive payments. If your deceased spouse’s property is gone and no other exceptions exist, creditors may have to eat their losses.
Who a debt collector can contact
Families are protected by debt collectors who attempt to collect debt using abusive, unfair or deceptive practices.
You may not be liable for your spouse’s debts
If the debt is not in your name, you may not be liable for the debts of your deceased spouse. The funds of the debt will come from your spouse’s property.
However, if you have co-signed a loan, credit card, etc., you will be responsible for the entire balance. A spouse who lives in the community’s property state is also responsible for the debts of the deceased spouse.
Epoch Times Copyright©2025. The views and opinions expressed are those of the author. They are for general informational purposes only and should not be interpreted or interpreted as recommendations or solicitations. Epoch Times does not provide investments, taxes, legal, financial planning, real estate planning, or other personal financial advice. Epoch Times is not responsible for the accuracy or timeliness of the information provided.
