Am I Responsible for My Deceased Husband's Debts?

Handling the debts of a deceased spouse can be tricky. A few accounts, such as federally governed employer-sponsored retirement plans, 401k plans, 403b plans and traditional benefits plans are covered by federal law. Any other debts and assets, however, are covered by state law and every state handles debt incurred by a deceased spouse differently. A spouse's responsibility for the deceased's debt is determined by the state in which they were living when the spouse died.

Community Property States

Ten states in the U.S. have community property laws. In Alaska, Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin, any assets accumulated while a couple is married are considered joint property. In some states, debt incurred by either spouse during a marriage is considered joint property. In those cases, the debt may be the responsibility of the surviving spouse. Laws are not consistent among the states, however, and variations exist due to circumstances. In community property states, it is advisable to obtain the advice of an expert.

States Without Community Property

In states without community property laws, debt is the responsibility of the person who incurred it. If debt was incurred solely by the deceased person, it cannot be inherited by his spouse or children. All debts are paid by the deceased person's estate. If the assets of the estate are not sufficient to pay the debt, most entities must write off the debt. Credit card law is particularly specific since legislative changes passed in 2010. It is now illegal for credit card companies to delay informing the estate of a debt or for credit card companies to add fees or penalties during the time it takes an estate to be settled. Other creditors do not have these specific requirements but the general rule applies: If the surviving spouse did not personally incur the debt, she is not personally responsible to repay it.

Joint Accounts

Rules are slightly different if the married couple had joint credit accounts. If spouses were co-signers on loans, each person is equally liable for the debt. In that case, a surviving spouse may be responsible for the debt along with, or instead of, the estate. If you were merely an authorized user and did not sign the credit application, you are not responsible for the debt.

Federal Retirement Accounts

Federally insured retirement accounts, along with life insurance payouts and brokerage accounts, do not go through probate and, therefore, cannot be garnished or taken from a surviving spouse to pay off debt. If you are liable for your spouse's debts, your insurance money and retirement funds cannot be forcibly taken and used to settle those debts. Avoid taking advice from creditors or collection agencies. If you have questions, consider consulting an estate attorney.