QUESTION
Is my daughter liable to pay the credit card debt when I die if she uses the credit card in my name?
Asked on Apr 07th, 2014 on Estate Planning - Nebraska
More details to this question:
I have a credit card in my name and I pay the balance due each month. My daughter also uses this credit card. Is she liable for any unpaid balance when I die?
11 ANSWERS
Business Law Attorney serving Bingham Farms, MI
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James T. Weiner, P.C.
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Most likely if she has a card in her name on your account they will hold her liable.
Answered on Apr 09th, 2014 at 7:49 PM
Trusts Attorney serving Sacramento, CA
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Law Office of Victor Waid
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Yes if she makes on the card.
Answered on Apr 09th, 2014 at 5:43 AM
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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It depends on your agreement and whether anyone challenges the arrangement. When you die, your estate is liable for all your debts. If the credit card company decides to, it can pursue your estate for the entire balance. Your other heirs, if any, might have a claim that your daughter should be responsible for any share of the debt resulting from her use of the card. As between the estate and the credit card company, however, they are probably within their rights to go after your estate for the entire amount.
Answered on Apr 09th, 2014 at 5:43 AM
Commercial Attorney serving Chicago, IL
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Ashcraft & Ashcraft, Ltd.
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Since your daughter is not a joint borrower on the card but merely uses the card in your name and with your permission she would not be liable for the debt. You are liable for the debt she incurs. The debt will be a liability of your estate and would have to be paid out of your assets before any distribution can be made to your heirs or legatees. If the card is used after your death then your daughter would be liable for the debt and the use could be considered fraudulent since you are no longer able to accept and ratify the use. The ability to use the card ends when the borrower dies.
Answered on Apr 08th, 2014 at 8:11 PM
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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Possibly, if they can prove the purchase was by her for her benefit. Of course, when you die your estate should pay the bill.
Answered on Apr 08th, 2014 at 8:11 PM
Edwin K. Niles
If she is a signer on the acct., probably. If she is merely signing your name, probably not.
Answered on Apr 08th, 2014 at 8:11 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Your estate will be liable for the remaining balance, she will not unless she also is on the account and signed the agreement with the credit card company.
Answered on Apr 08th, 2014 at 8:10 PM
2 Awards
The estate will be liable for the balance. If you have money when you die, it will go first to pay your debts. Otherwise, the credit card company should not be able to recover anything from your heirs.
Answered on Apr 08th, 2014 at 8:10 PM
Thomas Edward Gates
Your estate would be responsible for paying off of your credit card balance at the time of your death. Your daughter will not be able to use the card after your death. If she does, she can be charged with fraud and theft.
Answered on Apr 08th, 2014 at 8:10 PM
Probate Attorney serving Newport, OR
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Minor, Bandonis & Haggerty P.C.
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If you are the authorized holder of the card, when you die your estate will be liable to pay the balance on the card. If your daughter is your only heir or devisee, this amounts to her being liable. If she has siblings, then all will have to pay, unless you make a will specifying that her share is charged with the credit card debt.
Answered on Apr 08th, 2014 at 8:08 PM
If she's a minor when she makes the charges, you or your estate are responsible for the bill. If she's an adult, have her get her own credit card so she can develop a credit rating of her own and you don't have to worry about this issue.
Answered on Apr 08th, 2014 at 8:07 PM