Does credit card debt transfer to spouse after one's death?

[bojack13]

San Diego, California

Good morning. My question has to do with debt transfer after a person passes away. I know this has been asked a lot so thank you for reading this. Unfortunately, none of the other topics I saw after running a search had what I was looking for specifically.

My mother has accumulated a huge debt (well over $20,000) which she most likely won't be able to pay and I'm wondering who will have to pay this debt when she passes away. I'm worried about the creditors dumping all this debt on either my dad or myself. We live in California and I've read that any debt someone has automatically transfers to their spouse in a state that employs "community property law", which I don't know too much about. My dad had absolutely nothing to do with all the credit cards my mom got all these debts on, and they haven't shared any bank accounts with each other in over ten years. They are still married.

Will these creditors be able to force my dad or myself to pay these debts? Even though our house is under mine and my dad's names (was under her and my dad's names a few years ago) can they still take it or any of our other possessions? What can we do to prepare for this inevitable battle with her creditors?

Thank you in advance for any help and have a great day

[ecmst12]

CA is a community property state - her debt is ALREADY his debt, even while she is still alive. You, on the other hand, have no responsibility for the debt of your parents.

[bojack13]

Thank you for your reply. My God, that is extremely depressing Is that "community property" law really that cut-&-dry? Is there anything my dad can do at all to avoid paying her debt? What will happen if my dad refuses to pay when they start coming after him? Can they take property from us even if nothing is currently under my mom's name or threaten us with legal action?

[Wirelessany1]

Originally Posted by bojack13

Thank you for your reply. My God, that is extremely depressing Is that "community property" law really that cut-&-dry? Is there anything my dad can do at all to avoid paying her debt? What will happen if my dad refuses to pay when they start coming after him? Can they take property from us even if nothing is currently under my mom's name or threaten us with legal action?

Legal action is a possibility. You parent should negotiate with the creditors especially if she benefited at all from any of the expenditures.

[JETX]

And now for a legally ACCURATE response....

Your mothers debts do NOT automatically become your fathers on her death. Her creditors will first pursue the debt against her estate, to be paid from any assets her estate has.

Depending on the specific facts of the transfer of the house out of her name, that COULD include the house IF the creditors are successful in arguing a fraudulent conveyance to remove her ownership (asset).

If there are not sufficient funds in her estate, then they can pursue legal proceedings to make your father liable for her debts. It doesn't happen automatically.

From California Probate Code:
13550. Except as provided in Sections 11446, 13552, 13553, and 13554, upon the death of a married person, the surviving spouse is personally liable for the debts of the deceased spouse chargeable against the property described in Section 13551 to the extent provided in Section 13551.

13551. The liability imposed by Section 13550 shall not exceed the fair market value at the date of the decedent's death, less the amount of any liens and encumbrances, of the total of the following:

(a) The portion of the one-half of the community and quasi-community property belonging to the surviving spouse under Sections 100 and 101 that is not exempt from enforcement of a money judgment and is not administered in the estate of the deceased spouse.
(b) The portion of the one-half of the community and quasi-community property belonging to the decedent under Sections 100 and 101 that passes to the surviving spouse without administration.
(c) The separate property of the decedent that passes to the surviving spouse without administration.