 TITLE: What Happens to Credit Card Debt When You Die? CONTENT: Next Steps After a Cardholder Dies\n----------------------------------\nWhen a relative or loved one passes away with existing credit card debt, take the following steps to ensure the debt is handled properly.\n1.  Stop using credit cards on which you are an authorized user. (You can keep using credit cards on which you are a joint account holder.) Using a credit card after the primary cardholder's death is considered fraud, even if you are an authorized user. That's why it's a good idea for each spouse to be the primary cardholder on at least one credit card.\n2.  Make a list of the person's credit card accounts. If you aren't sure which accounts the person had, the spouse or executor of the deceased can request a copy of the person's credit report to check.\n3.  Notify the credit card companies of the death. If the card was solely in the deceased's name, you should ask to close the account. If you have a joint credit card account, tell the credit card issuer that one account holder is now deceased. You'll generally have the option to close the account or keep it open in your name only; however, the terms of the credit card agreement, such as the annual percentage rate, may change once you are the sole account holder.\n4.  Notify the three consumer credit bureaus. Credit card companies will report the death to the credit bureaus, but it may not happen immediately. If you don't want to wait, you can report the death to the three major consumer credit bureaus (Experian, TransUnion and Equifax) yourself. This can help ensure that identity thieves don't apply for credit in the deceased's name.  \n    The reporting process may differ slightly for each credit bureau. In general, however, you'll need to supply a copy of the death certificate and the deceased's Social Security number. Unless you are the spouse of the deceased, you'll also need proof that you are the executor of the estate or otherwise authorized to act on the person's behalf.\n5.  Make timely payments on any jointly held credit cards. Even if you don't plan to keep using the card, just one late payment can have a negative effect on your credit score, which may make it more difficult to get credit in your own name going forward. The death of a loved one is a stressful time, so to ensure you don't miss a payment, consider setting up automatic minimum payments on any joint credit accounts.\nIf you are an authorized user on a credit card held by the deceased, do not make any payments on that card. If you do so, the credit card company may legally be able to argue that you have taken responsibility for the entire balance. A missing payment will not reflect on your credit report, only on that of the primary cardholder. If you live in a community property state, consider asking an attorney to clarify whether you should or should not pay the bill.  \nAssets That Are Protected From Creditors\n----------------------------------------\nIf you discover that a spouse or other relative's credit card debt was bigger than their estate, will you have to empty your bank account or hand over your spouse's life insurance to pay the credit card companies?\nWhile debt such as mortgages and car loans is secured by collateral, credit cards are unsecured loans, which tend to fall at the bottom of the priority scale after a death. If your estate doesn't have enough money to pay all your debts, state law will determine which creditors are the highest priority. In many cases, unsecured debt will not get paid.\nIn addition, the following types of assets are protected from creditors in the event of a death:\n*   Retirement accounts, including employer-sponsored 401(k) or 403(b) plans, Solo 401(k) plans, SEP IRAs, Simple IRAs or Roth IRAs\n*   Life insurance proceeds\n*   Assets held in a living trust\n*   Brokerage accounts\n*   Homes, depending on state law and how title to the property is held\nCredit card companies may contact survivors after a death to get information such as how to contact the executor of the deceased's estate. However, they cannot legally ask you to pay credit card debts that aren't your responsibility. If you're not sure what your responsibilities are, consult an attorney familiar with estate law in your state.  \nCredit Card Liability After Death\n---------------------------------\nKeeping your credit card balances manageable while you're alive can ensure your credit card debt doesn't burden your survivors after you die. If a spouse or other family member with whom you had joint credit accounts dies, keep an eye on your credit score to make sure it isn't negatively affected as a result. Check your credit report and consider signing up for free credit monitoring to help you build and maintain a good credit score. END