General Credit Topics

[LondonTraveller]

What happens to outstanding balances on death? Perhaps paid out of deceased's estate? What if there is no estate? Related question: Do credit card issuers REDUCE limits to older folks as they get even older...as it is unsecured debt and they have no idea if the crad holder has any estate to speak of?

[myhearts07]

Try this site.

http://www.thisismoney.co.uk/help-and-advice/ask-an-expert/loans/article.html?in_article_id=403234&i...

[Boscoe]

Do we have a USA answer?  The last post is British law.

[Lady_Scarlet]

"legally" you can't be denied credit because of age - but someone that has a 40 or 50 year credit history you know is a Senior Citizen.

The estate is responsible upon death and if there is no money then they lose - can't get what isn't there.  Heirs are not responsible for anyone else's debt.  I say heirs because the Family photo albumn has no value.

Most of the seniors now (not we baby boomers) - are very conservative with their money because of having lived thru the depression.  Don't be surprised to find that they have money when you thought they were broke.

[HappyDays]

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LondonTraveller wrote:
What happens to outstanding balances on death? Perhaps paid out of deceased's estate? What if there is no estate? Related question: Do credit card issuers REDUCE limits to older folks as they get even older...as it is unsecured debt and they have no idea if the crad holder has any estate to speak of?

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I have never heard of a CCC accepting less then full amount owed for the elderly!

John Doe has several CC in his name ONLY (CC is NOT a joint account) and there is no estate, the CCC writes the debt off.   I think that if there was an estate they would need to contact the court or attorney that is handling the estate.

John Doe has several CC and the CC are joint with  Mrs Doe or anyone else.....mrs or other person would be responsible for full payment.

[Timothy]

estate- yes they will get it

No-estate- They will look to see if there is $ to recover and fold if there is none.

[SignGuyDino]

How about life insurance?  My wife passed away last month and all of her loans and cc's were unsecured.   No co-sign.  (Yikes, she had a few of them, totalled over $22K.)  The only property she had was a parcel of land with a run-down home valued around $7,700 in a very rural county.  To top that off, it was co-owned by her sister, meaning her only worth is around $3,800.  I would probably suggest her family offer to pay off the $3,800 to prevent it from being auctioned in a settlement.

She took out a life insurance policy with me at the beneficiary.  I have been told it will be $19K but I don't know for sure, I'll call.   Of course, no will.   So do the creditors have a claim on my life insurance check?

As you can imagine, it will be a hassle for me but I think I owe nothing but getting death certificates to her creditors.  No?

Message Edited by SignGuyDino on 10-02-2008 04:20 AM

Message Edited by SignGuyDino on 10-02-2008 04:24 AM

[Wonderin]

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SignGuyDino wrote:

How about life insurance? My wife passed away last month and all of her loans and cc's were unsecured. No co-sign. (Yikes, she had a few of them, totalled over $22K.) The only property she had was a parcel of land with a run-down home valued around $7,700 in a very rural county. To top that off, it was co-owned by her sister, meaning her only worth is around $3,800. I would probably suggest her family offer to pay off the $3,800 to prevent it from being auctioned in a settlement.

She took out a life insurance policy with me at the beneficiary. I have been told it will be $19K but I don't know for sure, I'll call. Of course, no will. So do the creditors have a claim on my life insurance check?

As you can imagine, it will be a hassle for me but I think I owe nothing but getting death certificates to her creditors. No?

Message Edited by SignGuyDino on 10-02-2008 04:20 AM

Message Edited by SignGuyDino on 10-02-2008 04:24 AM

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First and foremost, I am so VERY sorry for your loss.

Life insurance is NOT considered a part of the estate -- unless the CC was joint (meaning, in your name, too), the CCs have absolutely no claim on it. Same with 401(k) (in the case of 401(k), only if the "estate" was named the beneficiary will a penny of it go to paying the estate's debts).

Rule of Thumb: In situations where you are named a "Beneficiary" the funds are yours, free and clear. In situations where you are named an "Inheritor" then the funds are yours AFTER the estate has been settled (for lack of better terms).

Before it's cleared though, you WILL need to provide the creditors with a copy of the Death Certificate.

I sincerely hope this helps. And again, I am so sorry for your loss!!

[Timothy]

I would say Wonderin is correct except in a community property state-

[Wonderin]

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Timothy wrote:

I would say Wonderin is correct except in a community property state-

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I don't know nuthin' 'bout no community property states!!

After my messy divorce a few years ago, I steer clear of'em. They scare the doody outta me!! o_O
I barely got away without paying alimony to HIM.