Is a widow responsible for the deceased spouse's business debt even if it was made on a joint credit card?
October 17, 2009 
5 Comments
Smitten asked:
I have a relative who opened credit cards and her spouse used them to run business (sole proprietorship) expenses through. He then died with quite a bit of debt on the cards. Is she still liable for these debts or can the the credit companies write them off due to the death?
I have a relative who opened credit cards and her spouse used them to run business (sole proprietorship) expenses through. He then died with quite a bit of debt on the cards. Is she still liable for these debts or can the the credit companies write them off due to the death?
If her name is also on the credit cards she is responsible to pay that debt now that her husband has passed away. She was responsible for them when he was alive too.
On a joint card yes she's responsible.
If both their names are on them then she is obligated for the debt. The credit card companies will force the estate into probate and put a lien on the estate to recover the debt.
Even if she proves business the debt is still an obligation to be paid with the estate assets. If the will has marital trust stipulation then that could protect somethings.
She is not the estate, but ANY and ALL assets owned by the husband are fair game as they are the estate. She should contact the lawyer who wrote of the will, hopefully he had one, and ask him/her this question, not Yahoo answers. Some states have the wife getting everything or certain things if there is no will.
She should not start selling, giving away, transferring things like money between accounts, until the estate is settled. She could be charged with theft as the assets are not hers to do anything with until the estate clears probate.
GO TO THE SOURCE. NOT YAHOO ANSWERS
Oh she will be liable regardless of who charged on these cards
she is liable and never is debt written off just because of death.
When my sister passed away, the next month of course her payments weren't made, and her husband received a call and (these were not joint accounts) they gave him 30 days to pay off the debt in full.
She only charged on them a year prior when she found out her husband was having an affair, she then found out she had cancer and not long to live so we lived it up knowing he would be responsible for the entire amount. We enjoyed our last days together and she told me enjoy watching him pay off the bills,
Now he is totally broken
if her signature is on the account application, she is liable to the c/c issuer.
but note that the business also is liable to her for a reimbursement claim.