Deceased Spouse’s Debt

By:  www.LouisianaSuccessionLawyer.com

Question: Am I responsible for my deceased wife’s credit card bills? The cards were only in her name but the credit card companies keep calling me for payment. Do I have to pay the bills in her name?

This issue sometimes arises after the death of a spouse, when the surviving spouse starts going through the mail and discovers for the first time that their deceased spouse had credit cards or other debts that they did not know about. Many times the amounts owed on these bills have high balances which the surviving spouse simply cannot afford to pay. The surviving spouse quickly becomes concerned whether or not he or she is liable for the debt the deceased spouse left behind.

If the credit card or debt is something that was solely in the name of your deceased spouse and you never signed anything agreeing to be liable for it, as a general rule you will not be personally liable for the bill. 
This is true of credit cards, personal loans, car notes, business debts, mobile phone contracts, and other bills. Such items are debts of your deceased spouse and become liabilities of his/her estate and the creditor can seek payment through the succession proceeding.

There is one caveat however that you must be aware of.  Although the creditor cannot pursue you personally for payment of the bill, the creditor is however permitted to pursue and collect against any community assets you owned with your deceased spouse. 

For instance, even though you are not personally liable, the creditor may nevertheless be able to garnish a bank account that was jointly owned between you and your deceased spouse.

The rule of law in Louisiana permits creditors to pursue community property to satisfy both separate and community obligations.  As such, even though you are not personally liable, it may not be prudent to ignore the bill collectors of your deceased spouse if it puts your community property at risk for being taken.

The Scott Law Office
Brad P. Scott - Attorney
www.LouisianaSuccessionAttorney.com

Bank Account & Wages

By:  www.LouisianaSuccessionLawyer.com

 Question: My spouse just passed away. I need to access money from the bank accounts to pay bills and funeral expenses. Can I access the accounts now, or do I have to wait for a succession to be finished in order to get access to the funds?

Fortunately, Louisiana law provides a few quick, non-judicial, ways to access funds in bank accounts after the death of a parent or spouse. These procedures are useful in order to obtain immediate access to funds held on deposit in the event money is needed to pay bills or funeral expenses immediately following the death of a loved one.

Up to $5,000.00 can be withdrawn from a decedent’s bank accounts by the surviving spouse and heirs if the person died without a Last Will and Testament.  In order to be permitted to make the withdrawal, the spouse and the heirs must provide the bank with an affidavit establishing jurisdiction and relationship, and stating that the decedent left no will.  Most banks have a form affidavit that they make available at the bank branch for completion of this process.  The law allowing this procedure is found at Louisiana Revised Statute 6:315.1.

In addition to the above, there is also a second procedure that is available only to a surviving spouse that allows the surviving spouse to withdraw up to $10,000.00 from an account in the name of the deceased spouse or an account held jointly in the name of spouses.  In order to be permitted to make such withdrawal, the surviving spouse must provide the bank an affidavit stating that total funds withdrawn from all bank accounts under this procedure has not exceeded $10,000.00. This procedure can be used even when the person dies with a Last Will and Testament. The law allowing this procedure is found at Louisiana Revised Statute 9:1513.  Again, check with your bank and they typically can provide you with a copy of the necessary affidavit to complete this procedure.

As a related issue, the surviving spouse and children can also directly receive payment of up to $6,000.00 in wages from a deceased’s employer after death. In order to receive such payment, an affidavit must be provided to the employer stating the name, address, date and place of death of the deceased employee, the relationship of the person requesting payment to said employee, the name and address of the surviving spouse, or children, if any, of said deceased employee and such other information as the employer may require. The law allowing this procedure is found at Louisiana Revised Statute 9:1515.

The Scott Law Office
Brad P. Scott - Attorney
www.LouisianaSuccessionAttorney.com