If a spouse or loved one has passed away in California owing a significant amount of credit card debt, it's wise to be aware of state laws governing this situation. While it's possible that the debt will die with him, in some cases if you are a close relative, you may have to become involved.
Joint Credit Cards
If you were a joint account holder for the credit account, you will be held liable for the entire amount of the debt. The card company will not care which partner ran up the debt or who benefited from the purchases; you are legally liable to pay off the balance once the joint account holder has died.
Community Property
California is a community property state. This means that any debts incurred by one partner in a marriage can be regarded as the liability of the other partner. If the law is interpreted strictly, it will not matter if you do not have your name on any of the accounts; you may still be required to pay back the debt. It's worth retaining a lawyer in this situation who can help you understand how community property laws are applied.
Probate
If you are able to avoid liability for the credit card debt, it will be considered as part of the estate of the deceased person. This means the executor will have to work out whether there's enough in the estate to satisfy the debt or whether some of it will go unpaid. If you are the inheriting spouse, paying off credit card debt through the estate can have an impact on what's left for you to inherit.
Advice
You should seek advice if a loved one or spouse has died leaving significant credit card debts. The credit card company or the collections agency will tell you what is in its interest but may not share the whole truth of the situation with you. Get independent advice from an estate planning attorney or debt counseling service about your true liabilities.
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