Debt in Relation to Death

Shakespeare in his tragedies 'Hamlet' and 'Othello' brought out the inevitability of death. He gave it a philosophical meaning. Debt in common language means money borrowed. Debt and death do go together and one must be aware of what it means.

When a partner dies a large number of people face problems associated with debt. This is very likely in case the deceased had not taken out any life insurance. Thus his debts will have to be paid from his estate. This can cause no end of bother.

The death of a partner is always an emotional shock and at that time to cope with additional problems can be quite a handfull.

However it must be stated in unambiguous terms that in the USA the English common law on debt is valid. This states that a debt cannot be 'inherited'. It is not a legacy or estate that dwells on the successor. This is a very basic aspect of legal law on debt. A debt passes on to another person only if you are party to it or have signed as a co applicant. However debt can affect you in other ways.

Thus an inheritor will be affected in case the debts of the deceased are to be paid out of his estate, which is as per common law. In such cases the estate cannot be settled on the heirs till the debts are paid. In that case there may be a chance that you may have to enter into some agreement with the creditors to save your estate. Credit card debt however is another matter. It comes under the purview of 'unsecured debts'

Credit card debt normally dies with the debtor unless you have cosigned for the card. In that case you are responsible for the debts left behind by the deceased and would have to pay them.As credit card debt is an unsecured debt it is last in terms of importance as far as its recovery from the sale of an estate is concerned.

Legally no credit card company can enforce any debt on the deceased relatives. In such cases the simplest thing to do is to mail a copy of the death certificate of the deceased to the credit card company. Do send it by certified mail.

Another axiom of English law is that when someone dies, all his debts have to be paid out of the money and property left behind. As I have already mentioned the heirs are not responsible for the debt unless they have signed for it during the life time of the deceased. Thus a husband, wife or civil partner does not inherit any debts. Generally when a person dies someone is assigned to handle his estate. Usually that person is called the 'executor' or 'personal representative' .In case none is mentioned in the will than he will be appointed by the court. He is also called the 'executer' and settles all debts inherited by the estate. So finally one can state that debt and death do go together.