<p>. . . any credit card debt they might have? Must it be paid? What happens if there is no money in the estate to do so? What about other debts? </p>
<p>If there is an estate it is paid by the estate. I’m assuming this was not a person with a joint account. If there is no money in the estate it does not pass on to heirs. Some other debts are handled differently. The cc company could go after the estate (sale of property, etc) but it would greatly depend on the amount due.</p>
<p><a href=“What Happens To Credit Card Debt When You Die? | Bankrate”>http://www.bankrate.com/finance/debt/death-inherits-credit-card-debt.aspx</a></p>
<p>I have heard of creditors pressuring family members (children) to pay debts even when there isn’t enough money left in the estate. This is wrong, but seems to happen fairly frequently.</p>
<p>First you have to know if there even is an estate. If all the property is held jointly and passes automatically, then there is no need for an estate, and no where to get them money from. If there is a co-signer on the debt, it goes to the co-signer. The creditors are going to ask the spouse or heirs to pay, but there may be no obligation for them to pay. If it is a secured debt like a house, car, boat, etc., the creditor will take the collateral unless the heirs prefer to pay it off.</p>
<p>Basically you have to know what kind of debt it is, who else is responsible, and how the estate is being handled.</p>
<p>I have a friend who when her mother died a department store was going after the estate for a credit card payment (even called a collection agency). So these things do happen. The executor of the estate is responsible for paying all debts before distributing any of the funds (this includes taxes).</p>
<p>What if there is NO estate?</p>
<p>Thread on a very similar topic is here <a href=“Disowned son must pay father's care - #22 by jym626 - Parent Cafe - College Confidential Forums”>Disowned son must pay father's care - #22 by jym626 - Parent Cafe - College Confidential Forums;
<p>If there is no estate, I believe it is a loss to the lender. BUT as said above, sometimes the family is pressured when they actually have no legal recourse to do so. The executor of the estate should stop all automatic cc payments, and notify them of the death. I have heard several times where families were contacted after funerals to pay certain debts, and in fact they were not legally bound to do so. So, if your parent had credit issues and dies with a credit balance of $15,000, if you were not on a joint account and did not co-sign any agreements, you are not liable for the bill. However, if there is an estate of value and you are beneficiary, the bill will be paid out of the estate reducing what passes to the beneficiaries. </p>
<p>“I have heard of creditors pressuring family members (children) to pay debts even when there isn’t enough money left in the estate. This is wrong, but seems to happen fairly frequently.”</p>
<p>It definitely happens here in CT. The Assistant Manager at our local bank encountered this when her remaining parent died. The Probate Court declined to help. The Court’s position was “Your are not responsible for paying debts of (the parent’s) estate, but if you wish to personally pay them to stop the calls that’s your business.” The lady refused to pay, and after a year and a half the calls stopped.</p>
<p>You have to know state laws, also. And the priority order for debts to be paid. Taxes are high on the list. . You don’t pay a card debt until all the balance sheets are laid out and the mandatory issues are taken care of.<br>
<a href=“Credit Card Debt and Death | Nolo”>http://www.nolo.com/legal-encyclopedia/credit-card-debt-death.html</a></p>
<p>In the states where I’ve been executor, court costs, funeral costs, estate administration costs, taxes and a widow(er)/children living allowance all have higher priority than other estate debts except for debts secured by a mortgage. I was required to use the estate’s assets to pay in a very specific order;</p>
<p>Interesting. Thanks.</p>
<p>In the situation I’m thinking of, no one else was on the credit cards, and there was no estate, except for about $300 and a bunch of Star Wars collectible plates. 
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<p>We just went through this. If it’s a community property state, the spouse would be on the hook whether or not it was a joint account. In all other instances, the estate would be on the hook for the debt. If there is no estate, the credit card company loses out. In our experience, the credit card companies did attempt to collect from multiple family members. A letter from a lawyer promptly ended all collection calls.</p>
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<p>it depends on state law, but in most states this is usually untrue. Husbands and wives can own things, particularly property, in most states “by the entirety.” If they do, the creditors of one can not get the property as long as the other is still living. But things that are in a joint account where the joint owners are NOT married to each other are a different story. </p>
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Trying to collect a debt not owed by the individual you’re contacting could be (and likely is) a violation of the Fair Debt Collections Practice Act.</p>