Posted on June 17, 2009 at 11:47 pm Hi, would anybody know if a spouse is liable for the other spouse's credit card debts when he passes away in the state of California? I'm worried about my grandmother because my grandfather just died and she said something about grandpa owing about $11k on credit card debts. Thank you in advance!

Posted on June 17, 2009 at 11:56 pm California is a community property state which means that married couples automatically have joint assets as well as liabilities...so that means that your grandmother is liable for your grandfather's credit card debts...

Posted on June 18, 2009 at 12:08 am I'm sorry for your loss and I agree with pockefulofsunshine, since the debt was incurred inside of the marriage, your grandmother automatically shares your grandfather's liabilities. The other community property states are Arizona, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.

Posted on June 18, 2009 at 12:12 am This is so sad...is there a way for her to get out of it? I mean she's a senior citizen...and I bet she has nothing to do with my grandpa's credit card charges..how may I help her?

Posted on June 18, 2009 at 12:40 am I really don't know how you can help your grandmother with this situation other than have an attorney advice her. I've read of an issus in California wherein the wife, for example, protested the joint credit card debt clause because she had nothing to do with the husband's purchases. The credit card charges were for camping gears, I think, and items like those can be disputed, as they are not purchases for "community" use. They do not benefit the community.

Posted on June 18, 2009 at 12:50 am Although your grandmother can be considered insolvent in this case...especially if she does not have assets aside from her pension (I'm assuming that she's on one)...can somebody verify this?

Posted on June 18, 2009 at 12:56 am Well I think they own that house that they're living in and I know that they have a car and a small boat and the camping gears and hunting guns...and I don't know some framed animal heads...if you can consider those assets. Would they really take away my grandmother's pension?!

Posted on June 18, 2009 at 1:24 am Plans such as the 401(k) are protected by federal law, in any state, so I don't think the creditors can touch that. I'm not sure if IRA's in California are also exempt. If your grandparents have savings...the creditors might go after that.You really have to have her see an attorney or why not fill out one of the forms here and talk to debt experts for free.

Posted on June 18, 2009 at 1:35 am I think the best thing that you can do, if not yet, is to contact their creditors individually and inform them that the other half of the account (holder) has passed away. Ask your grandmother where she keeps the bills so you'd know who to contact and for which debt. Send the creditors a certified copy of your grandfather's death certificate, attach a note with his name and account number too. Make a copies of those for records sake. They'd most likely contact you for payment. This is the part where you need the advice of a debt expert or a lawyer. Until then, do not promise anything, especially if they ask you to take over or just oversee the account. If you can and want to pay it off--I guess accept the offer, but negotiate the terms. Especially the interest rates. If you don't want it, have it closed.

Posted on June 18, 2009 at 1:43 am Hi, very sorry for your loss, and just a little on debt responsibility after death.  When a consumer dies and has left behind debts, it is usually the estate that shoulders the debts, so regardless of if you are the husband or the wife of the deceased, you are not automatically liable for the debt. However, if you have signed a joint agreement or have provided a loan guarantee with your legal partner, then you are going to be held liable for the debt. This is true too for with community property states, just like what the others have said.What does estate mean? It is overall assets or properties (cash, insurance, investments) and debts (liabilities) by the deceased. Put simply it is everything and anything that the deceased owned and owed. If the deceased has left a will, probate would not be necessary, as the deceased would have appointed an executor or administrator in his will.  What does probate mean? A probate is the court intervention on the estate management and distribution of the deceased. If the deceased has created a will, a probate would not be necessary. The estate would be distributed according to statutes, and the estate would not have to pay attorney fees. So I guess find out if your grandfather has left a will.