Full question:
I have a friend who is dying of cancer. The end is very near and she is concerned for the husband and children she will leave behind. What bills/debts is her family responsible for once she passes? All of her bills, credit cards, etc. are in her name only. Will her family be responsible for the balance of payments. As far as I know, there is no estate involved.
- Category: Debts and Credit
- Date:
- State: New York
Answer:
Generally, a spouse is not responsible for the debts of a deceased partner, and children are not liable for a deceased parent's debts. However, there are exceptions:
- If someone co-signs or guarantees a debt, they remain liable even after the other debtor's death.
- A spouse or child may be responsible for hospital or nursing home bills if they signed contracts related to care.
- Using a credit card may make a person liable for charges, even if their name is not on the account.
- A spouse may be liable for essential services provided to the deceased, like emergency medical care.
- If the deceased received public assistance, a surviving spouse or child might owe the state for reimbursement.
The executor or administrator of the estate is responsible for paying the deceased's debts. If the estate has insufficient assets, state laws dictate the order of payment:
- Costs of administration (filing fees, legal fees, etc.).
- Family exemption (payments to the surviving spouse or children living with the deceased).
- Funeral and burial costs, and medical expenses incurred within six months before death.
- Rent owed for the deceased's residence for the last six months.
- Claims by the state for taxes owed may have priority.
If there are not enough funds to cover all debts, remaining debts are paid proportionately. Executors often seek court approval before paying debts from an insolvent estate to avoid personal liability.
Creditors can typically only pursue the deceased's assets, and certain assets may be exempt from claims.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.