Credit & Credit Card question. Dad has 2 credit cards in his name only. Dad passed away last month.?

Question

Since they were in his name only, is my mother responsable for paying off my fathers debt? If Mom does not pay Dad's monthly credit card bill will this effect Mom's credit? Mom is 82 Years old and might need a loan for funeral & burial costs & /or a reverse mortgage. Will not paying her husbands credit card debt adversly affect her credit & chances for a loan when needed? House has been in an irrevocable trust for 4 years. Mom has no assets . Minimal amount in savings $4000.00 with monthly $950.00 SOCIAL SECURITY CHECK & $400.00 pension check. That's it .Nothing more & nothing else. Dad was the only name on the cards & if there were charges made to these cards while he was alive & were his wife's or daughter's charges are they responsible for repayment? Dad had also sighned a notorized letter stating that his daughter and wife has, had, and have the right to use and sign his name to the account now, and in the past and in the future. Now there are No charges after his death. Default?

Answer 1

Condolences on your loss.
Send a letter via certified mail to each company today. Real short...
My Father, Mr Smith passed away on October XX, 2007.
Please make sure these accounts are closed. My Father has no assets or estate.
Enclosed is a copy of the death certificate....
Or ....I do not yet have the death certificate, but will send that to you within the next X weeks.
1. No other person is responsible as they are not a co-borrower. No one elses credit will be impacted.
2. Do not make any payments, you are not required to.
3. Like you said DO NOT use the accounts.
4. It does not matter who used the accounts.
Like any other type of default, the lender writes the account off as a loss.

Answer 2

I would suggest doing 2 things. First, get a copy of your father's death certificate (10 should do it) and send one to each creditor with a return receipt so you'll know they received them.

Then take or send one to the Social Security administration. This way, your Dad's social security number can be retired (they will block that number forever and no one will be able to use it illegally). It won't affect any benefits your mother receives from social security, it will just eliminate anyone using that number again.

There may be other agencies you might want to send copies to, like the insurance company or the bank where your parents kept their major accounts. This just documents that he is deceased.

And to answer your question, if the cards were in your father's name only - the agencies can not legally go after your mother for his debts.

Once you are certain they have received the death certificates, if they call again, get a lawyer involved.

Answer 3

When someone is deceased then the account is typically frozen. The debt has to be settled by your father's estate.
If the estate does not have sufficient funds to pay the creditors, the creditors will have to write off the loan.
Your mom or his daughter is not liable for your father's debts.
Executor/executrix will file last tax returns on the behalf pf your father and if any tax refund is due that may be used to payoff the portion of the debts. In Canada there is CPP death benefits to the amount of $2,500.
Good luck

Answer 4

I believe the credit card company can only go after the account holder. However, if the bill is not paid, they will probably sure your Dad's estate. Simply, anything in his name.
Worth noting, that if anyone is still using his card, without the intent to pay, it could be considered fraud/theft.