When people think about handling a person’s estate, their attention usually turns to distributing assets. Most people don’t think about the person’s debts, but those will have to be taken care of, too.
The debts of a decedent typically fall on the estate to pay. These payments are taken care of by the administrator and must follow a specific priority order.
Are loved ones ever responsible for a decedent’s debts?
In most cases, the debts of a deceased person aren’t the responsibility of their loved ones. There are limited exceptions to this, primarily if the loved one was a co-signer or a joint account holder. In those cases, the loved one would be liable for the balances due.
What happens if a debt collector calls a loved one who isn’t liable?
Debt collectors may try to contact loved ones in an effort to get the debt paid. Ethical debt collectors will accept the contact information for the estate administrator and go through the proper legal channels to collect the debt.
Unscrupulous debt collectors may try to pressure loved ones into paying a debt they don’t owe. When this happens, refuse to give out any personal or financial information. In some cases, legal action might be possible.
It’s critical for anyone creating an estate, acting as an administrator or dealing with debt collectors for a loved one to understand how to handle these situations. Working with someone familiar with these matters may be beneficial so they can get assistance handling the situation.