Dying with a credit card

[Beans on Toast]

I know it is late, but I have a very important question. A very close member of my family lost their spouse over christmas. Upon clearing out their belongings, several credit cards & store cards were found.

This person obviously knew nothing about the cards and is worrying about what to do about them. I am worried if they do not act, it could cause future problems for them at their address. I am pretty sure none of the cards carried insurance and would appreciate your comments and advice on the matter, I don't want them suffering any more than they have, thanks.

[MelanieGiles]

I am so sorry to hear that Beans, what a very sad thing to happen at this time of year.

If their partner had debts, they will firstly be paid out of the estate they leave behind before there is any return to the beneficiaries. Do you know if there are any outstanding balances on the accounts?

[Beans on Toast]

Yes Melanie, I believe all have been used recently, but I have heard other family members saying that the debt will die with them.

I am pretty sure this is not true, but I wanted to be sure before I start getting involved.

[MelanieGiles]

Only if there are no assets in the estate to realise to pay the debts off. Is this the case, or was the property jointly owned with a spouse?

[Beans on Toast]

The property was jointly owned.

[MelanieGiles]

Then it probably transfers to the spouse automatically and would not form part of the deceased's estate - so there may be nothing to worry about. Best to run this via a lawyer though, especially if they died intestate, as I am definately no expert on the law of probate.

Would there have been any other assets apart from the property?

[Beans on Toast]

Thanks for your time Melanie. I don't think there were any other assets.

[MelanieGiles]

I will keep my fingers crossed for your relative. The last thing they need at this time is worry about debts they were not aware of.