Do You Have to Pay for a Deceased Person's Debts?

When a person passes away with outstanding debt, debt collectors can interrupt the grieving process. Whether those debt collectors have the right to contact family members and loved ones in an attempt to collect the deceased person's debts depends on a variety of factors. In most cases, the family does not have to pay the debt, but it does depend on the deceased person's estate, the types of accounts he held, and the state in which he lived.

Probate Court

When a person dies, the estate normally goes into probate court proceedings. Probate court determines what assets the deceased person had, and what outstanding debt she left behind. Whether there is a will or not, probate court normally uses part or all of the assets to cover any outstanding debts. If any assets are left after debts have been paid, they are distributed amongst heirs according to the terms of the will, or they are given over to the state to decide how to proceed. If the probate process reveals that there are not enough assets to cover the outstanding debts, the estate is declared insolvent and most debts are written off.

Estate Executor

One person is normally designated as the estate executor, or administrator. This person may be designated in the deceased's will or arranged ahead of time, such as in the case of having an attorney handle the estate. The executor is responsible for making sure all debts are paid, and all interested parties are notified of the death. If a creditor contacts you or your family about paying a deceased person's debt, refer him to the estate executor.

Joint Debts

You can be responsible for certain types of debt after someone dies. If you are the co-signer or joint account holder with the deceased for debt, you will remain responsible for paying that debt. If you live in a community property state and the deceased person was your spouse, you may also be liable for repaying her debt, even if your name was not on the account in question.

Collection Practices

Even when you are not legally obligated to pay off a deceased person's debt, some unscrupulous credit and collection companies may attempt to convince you to pay the debt anyway. Collection companies often call family members and heirs of a deceased person and try to use gentle persuasion and empathy to convince them to repay the deceased's debts. If a collection agency tries to get you to pay for a deceased person's debt, politely give them the contact information of the estate administrator and hang up.