Could You be Responsible for the Debts of a Dead Relative?

What You Have to Pay…and What You Don’t

By Gerri Detweiler / www.Credit.com

When a family member dies, relatives often wonder if they are responsible for the deceased person’s debts. What you need to know...

When Relatives Are Responsible For Debts

There are only two circumstances when you are likely to be legally responsible for a deceased relative’s debts:

• You and the deceased are co-signers on a loan or joint holders of a credit card account.
• You are the spouse of the deceased, and you live in a community property state. Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. (Alaska residents can "opt-in" to a community property system.) Ask an estate or probate attorney to determine your liability if you live in a community property state and your spouse left you with significant debts -- you might not be liable for all of them.

Example:  A surviving spouse in a community property state often is not legally responsible for the deceased partner’s debts that predate the marriage.

Many Senior Citizens Worry About How to Leave Something for the Kids

Biggest Fear is Spending all of that Money on Assisted Living/Nursing Home

Millions Face Shrinking Social Security Checks:

Next Year Marks First Time in a Generation that Payments Won’t Increase

Courtesy of the Associated Press

WASHINGTON - Millions of older people face shrinking Social Security checks next year, the first time in a generation that payments would not rise.

The trustees who oversee Social Security are projecting there won't be a cost of living adjustment (COLA) for the next two years. That hasn't happened since automatic increases were adopted in 1975.