In a nutshell: In most cases, spouses are not responsible for paying off the debt of a deceased person. Instead, the deceased’s estate pays off any debt owed, including credit card debt. However, you may be responsible if you cosigned or were a joint account holder.

Sorting through financial matters after the death of a spouse can be challenging. The last thing you want to do is stress about debt or think about forging a new credit life of your own. But understanding these issues and taking the steps to resolve your spouse’s financial matters are important issues to handle quickly and efficiently. Discover more about credit card debt after the death of a spouse and other relevant financial matters below.

• What debts you’re responsible for
• How the estate handles debt after death
• What to do if debt collectors call
• Other financial steps to take

What Debts Are You Responsible for if Your Spouse Passes Away?

Tip: When you’re dealing with debts after a spouse has passed away, the law can get a bit complicated. You may want to speak to an estate lawyer or other professional to help you sort everything out.

Different types of debt are handled differently after a death. We’ll cover credit card debt, loan debt, and medical debt here.

Credit Card Debt

In most cases, no person is held responsible for someone else’s debt after they pass away, according to the Consumer Financial Protection Bureau. That’s true whether you’re a spouse, adult child, sibling, or other relation, and it’s true for credit card debt as well as other types of debt.

There are a few circumstances where you may be required to pay your deceased spouse’s credit card debt:

• You cosigned the credit card account. If you cosigned a credit card account, you are responsible for its payment. Not many credit card issuers allow for cosigners, so this is an unlikely scenario.
• You had a joint credit card account. If you have a joint credit card account as a couple, you would continue to owe any debt associated with it. Joint account holders and authorized users are not the same thing, so if your spouse added you as an authorized representative simply so you could use a card on their account, you would not necessarily owe the debt.
• State laws require that you pay the debt. There may be instances where state laws require a spouse to pay a particular type of debt, such as medical bills paid with a credit card.

The CARD Act of 2009 requires credit card issuers to notify the executor of an estate if any balance is due. The issuer cannot add fees or penalties to the account while the estate is being settled.

Other Loan Debt

According to the CFPB, you would not be responsible for your spouse’s auto, personal, student, or mortgage loans either. However, the CFPB does note that there are some exceptions that would make a spouse potentially responsible for debt.

Here are some of the most common exceptions:

• You cosigned for a debt. When you cosign a loan, you agree to be financially responsible for it if the other person doesn’t make their payments for any reason. That may include the fact that they passed away.
• You’re a joint account holder. Spouses commonly take out joint loans such as mortgages and car loans. If you are a joint account holder, you continue to responsible for the repayment of those loans.
• State law demands payment. In some cases, state laws might require you to pay certain types of debts, particularly out of the estate but potentially out of your own assets. This is one reason why you may want to consult a professional.
• You’re in a community property state. In this case, you might be obligated to pay debts out of community property that you own together and not just out of property owned by the estate.

Medical Debt

Medical debt is a little different from other types of debt. In most states, the “doctrine of necessaries” may apply to your spouse’s medical debt. This simply means that the provision of medically necessary care by a hospital to your spouse creates an implied contract. Or, more simply, it’s an implied agreement that you’re going to pay for those services. Due to that agreement, you may be held responsible for those costs. 

Additionally, if you’ve signed any type of guarantee or contract agreeing to pay for medical debt, you may be obligated to do so even after the death of your spouse. The next of kin may be asked to sign such documents if the patient is unable to do so themself.

How the Estate Handles Debts

Debt that your spouse was solely responsible for is only owned by their estate. When someone passes away, their assets are held in estate. Those assets are used to pay off their debts. Then, the remaining assets are distributed to beneficiaries according to state estate law and any will or other legal document the deceased left.

Estate law can be complex and varies by state, so if you have concerns, it’s a good idea to consult a lawyer. You can work with the attorney who prepared the estate documents originally. You can also choose a new lawyer for probate. Probate is the legal process of handling the estate.

During probate, certain assets of the estate are converted to cash and used to pay off debts. Creditors must make a valid claim against the estate before they can be paid, and how long they have to do that depends on the state. It can range from months to years.

It’s possible that an estate may not have enough value to pay all outstanding debts. In that case, the estate must follow prioritization. While state laws vary, most prioritize debts roughly in this order:

• Funeral expenses
• Estate administration costs
• Medical bills
• Other debts

Once the estate money runs out, creditors simply do not get paid. Unless an exception—such as those listed above—is present, the spouse does not owe any debts the estate could not pay for.

Assets Used to Pay Off Debt

Only assets that enter probate can typically be used to pay for debts owed by the deceased. Whether or not an asset enters probate depends on state law and how the accounts or assets are set up. 

When an asset skips probate, ownership of the asset is transferred immediately to the documented beneficiary. All you typically need for this process is a death certificate. Some examples of assets that commonly skip probate and might not be used to pay off a spouse’s debt can include:

• Proceeds from life insurance policies
• Qualified retirement accounts, such as IRAs and 401(k)s
• Assets held in certain types of trusts
• Certain jointly owned property, including checking accounts and homes

Dealing with Collections Calls after the Death of a Spouse

Debts don’t just disappear after someone dies, and collectors may attempt to collect on those debts. However, as the spouse of the deceased, you have rights. Here are some facts about what creditors can and can’t do—and what you can do to stop them calling—from the Federal Trade Commission.

• Collectors can only discuss a deceased person’s debt with certain people. That includes the spouse or the executor or administrator of the estate.
• Collectors can contact third-parties, such as relatives or listed friends, only to ask about contact information for the executor or spouse. They cannot discuss the debt with these people. 
• Anyone, including spouses, can request that debt collectors stop contacting them. You must do so with a written letter you mail to the debt collector. It’s a good idea to send it via certified mail with a required return receipt so you can document your request.

You might also dispute the debt by sending a debt validation letter. This requires that the creditor provide documents that demonstrate the debt is valid. However, because whether or not you owe these debts can get complicated, especially depending on your state, you might want to consult with an attorney first.

Other Financial Steps to Take after a Spouse Passes Away

Debts aren’t the only financial considerations after your spouse passes away. Here are a few other steps you might want to take—with the help of a lawyer or professional—to make sure your finances are protected.

• Work with your bank and other financial providers to properly move assets into your name. Bankers and other professionals can help you understand when and how best to manage your remaining assets and what might need to wait until probate.
• Check your credit. You want to understand how your financial situation looks now that you’re not presenting it as a couple. But you also want to watch for errors that might occur as reporting agencies update their records with new information following the death of your spouse. Unfortunately, clerical errors can hurt your credit during this time, but professional credit repair services can work to help you with your score, if there are issues, while you handle other things.

• Invest in identity theft protection. Scammers have a terrible habit of looking to deceased records for potential identity fraud opportunities. And since your records are linked to your spouse’s, that might put you at risk. You might consider options such as ExtraCredit’s Guard It feature to keep you safe while you concentrate on this season of your life.
• Set up life insurance. Whether your spouse left you well off or facing financial challenges, you might want to do well for your children or other beneficiaries in this arena in the future. A life insurance policy is one way of accomplishing that goal.

Managing financial matters, including the settlement of debts, can be time consuming and frustrating—especially during such an emotional time. It’s important to prepare and protect yourself by reviewing the facts and learning about your rights. Discussing the details with a legal professional is always a good idea.