Am I Responsible For Debts Left By A Deceased Relation?
In many cases when a person dies they leave behind an estate, and the will names the beneficiaries that are to receive the estate, including details on who will receive what. However, many people also leave behind a range of debts, which can be worrying for the family. These debts can be anything from loans and credit cards, car payments, or simply unpaid bills.
The one question many immediate family members of the deceased have is ‘Am I responsible for paying these debts off?’ Well, the answer will depend very much on the circumstances. For example, if your partner has died leaving a range of debts such as dental bills and credit card bills, then you may be responsible for making this payment. This is more likely if the decedent shared a bank account or credit card with you jointly. If the decedent was the main account holder or credit card holder, and you were simply a named second cardholder then you may not be liable.
If a person dies and leaves behind a string of loans and credit card bills, then you are not responsible for the payment of these debts unless you guaranteed the debt. If you acted as guarantor when the deceased took out the credit, then it is up to you to assume responsibility for the loan, as you have legally signed to state that you would do so.
One thing to remember is that most creditors will make a claim against the estate of the decedent for any monies owed rather than approach a relative of the deceased. This means that the relatives may still end up paying for the debts in a way, since the more debts there are, the more money will have to be paid out of the estate before the beneficiaries receive anything. In fact, there may be nothing left at all for the beneficiaries after all debts have been paid. However, unless any relative has signed to act as guarantor or took money or assets from the decedent shortly before they died, there should be no responsibility.
Many loans and credit cards debts will also be covered by insurance, which many people take out when they borrow money and take out credit. You should be sure to look into any insurance policies the decedent took out with the various debts, as you may find that many of these are already covered and will be written off through the insurance upon the death of the borrower.
