 TITLE: What Happens to Credit Card Debt When You Die? CONTENT: Who Is Responsible for Credit Card Debt When You Die?\n-----------------------------------------------------\nWhen you die, any debt you leave behind must be paid before any assets are distributed to your heirs or surviving spouse. Debt is paid from your estate, which simply means the sum of all the assets you had at the time of your death. The executor of your estate uses the assets in your estate to pay your outstanding debts. The executor may be someone you named in your will or estate plan or, if you didn't have a will or estate plan, a person appointed by probate court.\nIf you have more debts than you have assets, your estate is _insolvent._ Whether family members must pay your credit card debt in this case depends on several factors.\nAnyone who is a joint account holder on your credit cards can be held responsible for the debt after you die. Joint account holders apply for credit cards together as cosigners or co-borrowers; the credit card company checks both applicants' credit reports when deciding whether to issue credit. Both account holders are equally responsible for paying the credit card balance.\nFew major credit card companies offer joint accounts these days. If you share a credit card account with your deceased spouse, it's more likely that one of you is an authorized user on the other's account. (Check with the credit card issuer if you're unsure which category you fall into.)\nAs an authorized user, you receive a credit card in your name for the account and can make purchases and payments on the card. However, the primary account holder is ultimately responsible for paying the credit card balance. If you're an authorized user on the account of a deceased person, you generally aren't required to take care of the outstanding balance.\nThere's one key exception, however: Community property states typically hold spouses responsible for each other's debts. If you live in a community property state, you may have to pay your spouse's credit card debts after their death, even if you were only an authorized user or the credit card was solely in their name. Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin are community property states, and Alaska gives spouses the option to make their property community. Laws can vary from one community property state to another, so if you live in one of these states, ask an attorney with expertise in estate law in your state what your responsibilities are. END