What to Do if Your Late Loved One Had a Property to Pass On
- Credit card debt does not vanish when a cardholder dies and becomes the responsibility of the deceased's estate.
- State laws, such as community property regulations in states like Arizona and California, determine the responsibility for credit card balances following an account holder’s death.
- Surviving joint account holders or those who co-signed remain liable for the debt, and spouses may be responsible even without joint accounts.
- Life insurance policies pay beneficiaries but generally do not cover credit card debt, separating those proceeds from estate liabilities.
- Effective planning, communication, and debt minimization steps can protect survivors from bearing unpaid credit card balances after a loved one’s death.
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Does My Credit Card Debt Die With Me?
It’s a common belief that debts simply disappear when someone dies. However, the reality is often more complex, especially when it comes to credit card debt. This article clarifies what happens to credit card debt after a cardholder’s death and explains who is ultimately responsible for settling the account. Image Credit: Kiwis / iStock. The Estate is Responsible Credit card debt doesn’t vanish; it becomes the responsibility of the deceased’s es…
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