Who Pays a Spouse's Debt When He Dies?

The death of a spouse is traumatic enough without the added stress of finances and debt collection attempts. Debt repayment during probate and the surviving spouse's liability depend on state laws and account details. Excluding joint accounts and community property states, proceeds from the estate pay off the debts, or creditors write them off as losses. If you are unsure about your financial liability, consult a legal professional about your rights and responsibilities.

Probate and Estate Process

The executor of the estate has the responsibility for tallying assets and debts, notifying creditors of the death, paying debts with estate funds and distributing proceeds to heirs. If there is no will or no executor named, the court will appoint one. Estate assets and funds may be "frozen" until appointment of an executor. However, joint funds and resources may be available to the surviving spouse earlier. Insurance policies pay directly to the beneficiary and thereby avoid probate unless the will names the estate as beneficiary.

Paying the Debt

Government debt takes priority in the payment process. Depending on state laws, you must next pay secured debt such as mortgages and properties with liens. Unsecured loans and revolving accounts like credit cards receive payment last. If estate funds are insufficient, some creditors receive no payment. The executor can only sell assets in the deceased's name to pay off debt. Jointly held properties, such as homes or vehicles, pass directly to the surviving account owner.

Joint Responsibility

You may be liable for your spouse's debt if you were a cosigner on an account or you live in a community property state. Married couples in community property states share responsibility for assets and liabilities. Authorized users are different from cosigners, and excluding community property states, authorized account users are not responsible for the debt after the account holder dies.

Considerations

Unless debt payoff was part of probate, debt collectors will call. Refer all collection attempts to the estate executor. If you are the executor or the estate has settled, ask for verification of the debt and check the statute of limitations in your state for the debt in question. Creditors cannot sue you beyond your state's statute of limitations. Additionally, most debt collectors will not tell you up front if you are personally liable. When asked if you are responsible, they must tell you the truth. The Fair Debt Collection Practices Act protects you from deceptive debt collection attempts.