Are You Responsible For Your Spouse's Credit Card Debt When They Die?

By far, the saddest cases in my years as a financial advisor were assisting widows after their spouses' deaths. Not only does a surviving spouse have a great deal to manage emotionally, but the financial burden can feel equally overwhelming.

Later in this article we'll take a look at who's responsible for a late spouse's credit card debt, but let's first address three important financial actions to take soon after the death of a spouse.

1. Alert credit agencies: Unfortunately, these days, the open, abandoned credit file of a deceased person is like a hand-engraved invitation for identity theft. So, the first step you should take in dealing with the deceased's finances is to alert the three major credit-reporting agencies -- Experian, Equifax, and TransUnion -- of the death. Experts at LowCards.com also advise you to request that a "deceased notice" and the explicit statement "Do not issue credit" be added to the decedent's file. To further protect your deceased spouse's identity, LowCards.com recommends you ask to be alerted if any new credit applications are made in your spouse's name. Make the requests in writing and include a certified copy of the death certificate. Keep copies of the letters for your records and send via certified mail.

2. Request a credit report: Get a copy of your spouse's credit report mailed to you. That way, you'll have a complete and up-to-date record of your spouse's open credit cards.

3. Contact creditors: Call the decedent's creditors to notify them of the death. They too will need copies of the death certificate mailed to them.

And the Bills Go To ... Whom?

Who is responsible for the outstanding credit card debt will depend on the type of account and where the deceased lived. Let's take a look at the specifics.

Joint account: If the account had both spouses' names on it, then the surviving spouse is responsible for any outstanding balance. In this case, the debts of the deceased are considered those of the surviving spouse. The surviving spouse can either close the account or have it titled in his or her name on it.Authorized users and second cardholders: A surviving spouse who was an authorized user or second cardholder is generally not responsible for payment on the credit card. The debts are considered those of the deceased only and are to be settled through the deceased's estate (a bit more on this later).