Credit problems dont only plague the young; an increasing number of seniors are piling up credit card debt. In addition to this debt being a problem during life, as evidenced by a sharp rise in elderly Americans filing for bankruptcy protection, it also becomes problematic when seniors leave behind credit card debt, as there can be confusion as to who is responsible for paying those bills.

In fact, its not unusual for credit card companies to contact the spouse or children of a recently deceased card holder, and ask for payment. If you are the surviving spouse or child, do you have to pay?

In most cases, you dont have to pay. Unless you were a joint account holder, your deceased loved ones final credit card bills are included in his or her estate. As part of settling the estate, all of your loved ones assets will be inventoried and valued, and a list of his or her final bills and debts will also be made. State law dictates the order in which final debts are to be paid by an estate, and credit card debt is not the highest priority item. So, your loved ones debts will be paid, in order of priority, with the estate assets. If there are enough assets to pay off all legitimate debts, then whatever amount is left over will be distributed among your loved ones heirs. If the estate does not have enough assets to pay off all legitimate debts, then the estate assets will be used to pay as many of the debts as possible. Whatever debts cant be paid will be written off, and responsibility for paying those debts will not be passed on to surviving family members.

What if you and your deceased loved one were joint account holders? In this case, the debt becomes yours when your loved one passes away, since you affirmatively obligated yourself to repay it.

If you have questions about which debts are yours and which should be shouldered by your loved ones estate, its best to contact an estate planning attorney for guidance.