Does an Executor or Child Have to Pay Credit Card Debt Not Covered by the Estate?
Full Question:
Answer:
A deceased's debts should be paid with the property in their estate (the property left at their death). A child doesn't typically inherit the parebt's debts unless they created a co-signor/guarantor/surety/joint account relationship to the debt, so that the child's name is on the debt also, and it isn't a separate debt. An executor is generally not personally liable on claims or lawsuits against the deceased person or the estate itself, unless he or she was negligent or engaged in some sort of wrongdoing.
Only after the debts are paid will the remaining assets be distributed among the beneficiaries of the will. Be advised that when a beneficiary inherits property that is collateral for a debt -- for example, a car that is not paid for or a house with a mortgage -- the debt comes with the property. If there is insufficient money or assets to pay all creditors, then the estate must be divided up as equally as possible, with secured creditors receiving priority. This means that if the deceased person died with little or no money in their accounts and didn't own a home, unsecured debt, such as credit card debt will not be paid to the creditors.
As executor, you must give notice of the probate of the estate to creditors so that they may be able to present their claims. However, if the assets of the estate are insufficient to pay all the debts, unsecured credit card debt naming only the deceased is not the responsibility of family members to pay personally.