Can you refuse to pay a deceased relative's debt?

Receiving a phone call from a debt collector is generally unwelcome under any circumstances. It can be especially jarring, though, in the days after a family member's death, when a creditor is calling to ask about a balance that belonged to someone who can no longer explain, dispute or pay it themselves. In that situation, it's not always clear who should be responsible for making the payment — or whether a payment should be made at all.

This situation is becoming more common now that household debt levels are sitting at record highs and more borrowers are carrying debt into their later years. And, that lingering debt can cause big financial issues for the family members left behind, as they may assume that because they're related to the deceased party, the debt is now their problem to deal with. Is that actually the case, though?

It's generally not. A deceased person's debt doesn't just transfer to the next of kin, but that doesn't mean it just disappears, either. So, if you find yourself in this situation, can you refuse to pay the lingering balance?

Find out more about the debt relief options available to you today.

Can you refuse to pay a deceased relative's debt?

In most situations, yes — you have the legal right to refuse to pay your deceased relative's debt. That's because when someone dies, their debts don't transfer to their children, siblings or parents by default. The remaining debts become claims against the deceased person's estate, which is settled using whatever money and property that person left behind. 

If the estate runs out of assets before those remaining bills are covered, the balance is typically absorbed as a loss by the creditor. Family members generally aren't expected to make up the difference out of their own pockets. There are exceptions worth knowing, though. 

For example, you could still be legally responsible for the debt if:

• You co-signed the loan. A co-signer agrees to repay a debt if the primary borrower cannot, including after death.
• You were a joint account holder. Joint credit card holders and co-borrowers generally remain responsible for the outstanding balance. However, authorized users on a credit card are typically not liable simply because they were permitted to use the account.
• State law creates liability. Some states have laws that may make a surviving spouse responsible for certain debts, particularly those incurred during the marriage or related to necessary expenses. The rules vary significantly by state, however.
• The debt is secured by property you inherit. If you inherit a home with a mortgage, for example, you'll generally need to continue making payments if you want to keep the property.

If none of these situations apply, you can generally decline to pay the debt from your own funds. 

Outside those specific circumstances, a debt collector who suggests you personally owe a deceased relative's balance is misrepresenting the law. Under the Fair Debt Collection Practices Act, debt collectors are generally limited to contacting the estate's executor or a similarly authorized representative about payment. 

They're only permitted to reach out to other relatives if they're trying to track down that contact information, and even then, they can't discuss the debt itself or imply you're on the hook for it. If a debt collector crosses that line, you're entitled to tell them in writing to stop contacting you — and that request carries legal weight.

Learn about the debt relief options you may qualify for now.

What should you do if you can't pay a deceased relative's debt?

If you discover that you are legally responsible for a deceased relative's debt because you co-signed a loan, held a joint account or are otherwise liable under state law, you don't necessarily have to repay the balance under the original terms. If making the payments is difficult or impossible due to limited finances, there may be options available to help.

One possibility is debt relief. There are multiple routes you can take, but depending on the type and amount of debt you owe, debt settlement could make sense. This route allows you to negotiate with creditors to settle for less than the full balance owed. This option is generally best suited for borrowers experiencing financial hardship who have already fallen behind on payments or are at risk of doing so.

If you can afford to repay what you owe over time but are stretched thin, debt consolidation may be another solution to consider. Consolidating eligible balances into a new loan with a lower interest rate or more manageable monthly payment can make repayment easier while potentially reducing the total cost of carrying the debt.

If you don't qualify for consolidation and settlement isn't the right fit, a debt management plan could make more sense instead. These plans can help lower interest rates and fees and organize multiple unsecured debts into a single monthly payment without requiring you to borrow more money.

Whatever option you choose, it's still important to confirm that you're legally responsible for the debt before making any payments. Remember, simply being a child, sibling or other relative of the deceased typically isn't enough to make you liable. But if you are a surviving spouse, co-signer or joint borrower, exploring debt relief sooner rather than later may help you better manage the obligation.

The bottom line

In most cases, you can refuse to pay a deceased relative's debt because the obligation belongs to the estate, not surviving family members. However, important exceptions exist for co-signers, joint borrowers, certain surviving spouses and people who inherit property tied to secured loans. So, before agreeing to pay any creditor, make sure you understand whether you're legally responsible. And if the financial pressures surrounding a loved one's death leave you struggling with debt of your own, exploring debt relief options sooner rather than later may help you regain control of your finances.