Having credit card debts and other debts is just a fact of life for many adults. Some people don’t think about what will happen to those debts when they pass away. It’s critical for all adults to learn about how the decedent’s debts are handled after they pass away.
One of the most important things to remember is that loved ones aren’t always responsible for paying those debts. Typically, the estate will have to pay for the decedent’s debts. The exceptions to that are if the spouse of the decedent is liable for the debt or if there’s a co-signer or joint account holder who’s responsible for it.
How should loved ones handle collection attempts?
If a loved one who isn’t liable for the debt is contacted by a creditor, they should provide the estate administrator’s contact information. The creditor can make a claim against the estate, but these are paid based on a hierarchy set by law. If there’s enough money in the estate, all the debts will be paid. If there isn’t enough in the estate, the debts won’t be paid if the decedent is the only person liable for the debt.
Understanding the way debts are handled is critical for anyone who’s lost a loved one. Nobody should have to deal with debt collectors who are trying to wrongfully collect from them when they’re already emotional from the loss of their loved one. Working with someone who can assist with this may be beneficial so there aren’t any missteps along the way.