credit card debt of deceased

[R MacIntosh]

What is the name of your state? Washington

When a person is deceased and has left considerable (and
multiple) credit card debt and there are no assets or estate to cover that debt, are the adult children liable for repayment?
(There was a fair amount of life insurance benefits
to a few relatives).

 

[JETX]

"are the adult children liable for repayment?"
*** Unless the childrens names are on credit agreement, no.

 

[R MacIntosh]

Edited question re: deceased cr crd debt

Thanks for the quick response.
However, I added a note to my question as you were
replying.

 

[JETX]

Life insurance is not part of the estate and therefore, is not subject to creditor demands.

 

[squeekaboo]

additional question

Sorry for my ignorance but I am just exploring into this issue......Can I have a clarification? So my parents have credit card debt and whatever other debt they end up with, and they leave me the house and life insurance.......I am not liable to pay the debt with the life insurance, but will have to pay the debt off with the house? They still have a car payment too, am I liable to pay that off somehow too?

 

[ShyCat]

Those are secured debts. The mortgage is secured by the house and the car loan is secured by the car. You can't keep those assets without paying the loans. If you don't, the bank(s) will foreclose on the house and repossess the car to satisfy the debts. You would only inherit what is left, if that's anything at all. Credit cards, on the other hand, are generally unsecured debt.

 

[JETX]

Let me try to clarify.
Life insurance proceeds do not 'pass' through probate or estate, since they are bequeathments.
Property (real and tangible) would pass through probate and/or estate distribution. Any assets of the estate are used to pay the debtors first, then the heirs.