Am I responsible for debts from my deceased spouse?

In addition to intense grief, the death of a spouse also comes with countless new responsibilities. From life insurance claims to funeral preparations to dealing with your deceased spouse’s will and assets, the to-do list can be overwhelming.

Talking to debt collectors is probably one of the last things you want to face when you’re grieving. Yet at some point, you may start to receive collection letters or phone calls that you need to address. In most cases, you are not responsible for paying off the debts of your deceased spouse, but you’ll want to be prepared for the scenarios in which you are.

Are you responsible for your deceased spouse’s debts?

In most cases, you are not personally liable for your deceased spouse’s debts. Both the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB) confirm that family members usually do not have to pay the debt of deceased relatives using their personal assets. This includes credit card debt, student loans and more.

When are you responsible for your spouse’s debts?

You might be financially liable for debts your spouse incurred in any of the following circumstances.

You were a cosigner or joint borrower

If you were a cosigner or co-borrower, the lender or card issuer will still expect you to repay those funds after your spouse dies. “If a credit card account is jointly held, both people usually have equal responsibility to repay the debt,” says debt expert and president of debt resolution at Achieve, Sean Fox. “That means that if you co-sign a credit card or loan, and the other account holder dies, you could owe the full amount of the debt – even charges you did not make.”

In the case of a credit card, however, see if you are an authorized user only. Authorized users are not responsible for credit card debt — whether the primary cardholder is living or decreased.

You live in a community property state

In a few states, the law may require the surviving spouse to use any community property you owned with your late spouse to cover outstanding debts. Community property rules state that a debt either spouse incurs during a marriage is considered a joint debt.

States with community property laws include Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. In some states like Alaska, community property is optional.

State law requires you to pay

Some states may require you, as a surviving spouse, to pay for certain types of debt, such as medical expenses. These are referred to as necessaries statutes.

You’re the executor of estate for your deceased spouse

As executor, you might have to pay the debts of a late spouse. There are some states that require you to do so out of property that was held jointly.

What happens to your spouse’s debts that you are not responsible for?

Even if you’re not personally responsible for your late spouse’s debt, the bill won’t simply go away. Your spouse — or rather, their estate — might still be responsible for the debt after death.

Here’s what could happen with debt accumulated by a spouse when you are not found legally responsible for repayment:

• The estate covers the debt. If the estate has enough money to cover the debts, they will be paid in order of priority as outlined by state law. If a creditor can collect the money owed from your deceased spouse’s estate and has the right to do so, that may mean there is less money for beneficiaries after the fact.
• Some assets and funds may be exempt. Certain estate funds and assets may be exempt from creditors as well. Life insurance policies, disability benefits, employer-sponsored plans and retirement accounts, for example, are often off limits as long as a beneficiary is designated.
• Some creditors may not get paid. If the nonexempt funds from your late spouse’s estate are exhausted, any remaining creditors might have to accept a loss unless one of the exceptions above applies to your situation.

Also know that, if there is no estate for your deceased spouse, remaining debts generally go unpaid.

What do you do if a debt collector contacts you about your deceased spouse’s debts?

Even when you’re not legally liable for a deceased spouse’s debt, you may still be pressured by collectors to pay. Consider the following responses if you’re contacted about the remaining debts of a spouse and you feel confident you’re not legally responsible for repayment.

Inform the debt collector of your rights

If you don’t live in a community property state and don’t believe there are any other reasons you could be held responsible, you can tell the debt collector that you know you are not responsible.

“Debt collectors do sometimes contact relatives of the deceased to try to collect payment but family members do not inherit a debt,” Fox says. “Instead, a person’s estate usually must repay all creditors. Whatever funds are left in a person’s accounts will be used to repay debts. In some cases, the estate may need to sell assets to repay creditors.”

Ask debt collectors to stop contacting you

You can also provide debt collectors with a copy of your spouse’s death certificate and ask the company in writing to stop contacting you. It’s best to send this information via certified mail and keep a copy of your request for your records.

Know your rights

Once you ask a debt collector to stop contacting you, the Fair Debt Collection Practices Act protects you. Any future communication regarding the debt should stop unless the debt collector decides to sue you and is informing you of that fact. If a collector continues to contact you after you ask it to stop in writing, you can report the company to the Federal Trade Commission or the Consumer Financial Protection Bureau.

Where to look for help

Contact a financial professional, such as a debt attorney, certified credit counselor or credit counseling agency if you need help understanding what debts need paid. A credit counseling agency can work with you to create a plan for repaying any debt you’re still responsible for making payments on.

If you need additional assistance paying the debt, you may want to look elsewhere. Some debt relief companies may be able to provide solutions — though they will come at a cost.

How can you plan ahead to avoid spousal debt after they die?

Proactive legal and financial planning while each spouse is alive can help avoid a situation in which a partner is forced to assume the debts of a spouse after their death. The following steps can help you prepare early on.

• Step 1: Take inventory of all debts in a marriage. Begin the process by taking inventory of the debts each partner holds and confirming the responsible parties on each account.
• Step 2: Create a debt repayment plan. Once you’ve identified all the debt, develop a plan to pay it off. This could include finding ways to supplement your income, paying more than the monthly minimums and finding ways to get interest rates reduced.
• Step 3: Consider financial tools to pay down debt faster. You may be able to consolidate the debt with a low-rate debt consolidation loan if you have good or excellent credit.
• Step 4: Consider buying a life insurance policy. Yet another tool that can help address spousal debt is life insurance, which can be used to pay off any debts after death.
• Step 5: Look into creating a trust. Establishing a trust fund is still another tool that can be used to protect assets from creditors after one spouse dies.

Bottom line

Generally speaking, you’re not responsible for repaying the debts of a deceased spouse. But there are some exceptions — for example, you must continue paying any joint debts. And, in certain situations, you could be responsible if you’re listed as the executor of your deceased loved one’s estate.

That said, figuring out which debt you are or are not responsible for is likely going to take precious time and energy if you do it alone. If you need help sorting things out, consider contacting a debt attorney, an estate attorney and a financial counselor.