Credit card debt is not passed on to heirs when a loved one dies, but it can still affect them. When someone dies with debt, credit card companies will first try to collect from the deceased’s estate. If there is not enough money in the estate, heirs may have to sell assets from the estate in order to cover the liabilities.
So, even though the heirs are not directly responsible for the debt, they may have to sell assets they were expecting to keep in order to repay the deceased’s financial obligations.
If, after assets are sold, there still is not enough money in the estate to cover the remaining debt, the company that issued the credit card will write off the debt. Family members are not legally liable for any remaining debt, but usually they will be asked to submit a death certificate as proof.
These rules do not apply if you are a joint account holder on a credit card. If you have a card in common with someone, you are responsible for the debt on that account if the other account holder dies.
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