Liability

Cat_Loving_Lady

Does anyone know if a person passes away with credit card debts whether their spouse is liable for these debts. They do have some savings and a house (mortgage paid off) however the wife was unaware of the debts.

antrobus

Cat_Loving_Lady wrote: »

Does anyone know if a person passes away with credit card debts whether their spouse is liable for these debts. They do have some savings and a house (mortgage paid off) however the wife was unaware of the debts.

The spouse is not liable for the debts. The deceased's estate is liable for the debts, and they will have to be paid out of the estate's assets. If the deceased owned all or part of a house, then the assets will very likely be sufficient to pay these credit card bills.

Whether or not the wife was aware of these debts is of no consequence. (All sorts of secrets come out when people die.)

HappyMJ

Cat_Loving_Lady wrote: »

Does anyone know if a person passes away with credit card debts whether their spouse is liable for these debts. They do have some savings and a house (mortgage paid off) however the wife was unaware of the debts.

Most probably not.

Joint accounts and property pass in full to the other person.

Any personal accounts can be used to pay personal debts so if they had an account in their own name then that can be used to settle the debt. If there isn't enough to settle the debt then the debt is written off.

molerat

The spouse is not liable for the debt but the estate of the deceased is. Savings, a car and possibly under some circumstances equity in the property forms the estate. They need to tale advice either from their solicitor or CAB. Who is the executor responsible for dealing with the estate ?

Cat_Loving_Lady

The wife is the executor.

chattychappy

If the house was jointly owned, then liability depends on how it was owned. If it was owned as "joint tenants" (which is most common) then the house passes by survivorship and doesn't form part of the estate*.
If it was owned as "tenants in common" then the house forms part of the estate and is available to pay off debts. As noted above, the spouse has no direct liability. It is the estate that pays debts. If there are insufficient funds, then the creditors lose out.

As executor, the wife must take care to handle the estate properly.

(*though in this case the house doesn't form part of the estate, a creditor can apply to the court for an order in order to recover monies due. This remedy is discretionary - I doubt whether in practice CCs bother with this.)