A family member died leaving credit card debts. Is the family responsible for the debt.?

Question

This is in Australia - so Australian laws. My mother was the eficiary - will she have to pay these debts.

Answer 1

I'm in Australia. As far as I'm aware the estate of the deceased person is required to pay the outstanding debts. So your mother, as beneficiary, is required to pay the debts out of the money that was left to her, rather than out of her own money. If there is insufficient money in the estate, then it will not be necessary for her to make up the shortfall.

Answer 2

I don't know the law in Australia, but I would assume that the estate is responsible. Did the relative leave anything of value? House, car, investments, property, cash? These would be used to settle the debt. In the US, a person's will names 3 people:

an executor, to carry out the wishes of the will and settle the person's affairs:

a guardian, to take care of the person's minor children if any;

a conservator, who protects the assets and wealth in the estate for the beneficiary if they are not yet of age.

If there is no will, the state names these people, and divides the property among the surviving possible heirs according to state law.

I would expect that Australian law would be at least similar to this.