The short answer is no. Spouses, children, and other relatives typically aren’t responsible for any of the outstanding debts of a relative who passes away.
A decedent’s debt is usually paid from their estate, which is money or property they left behind. When a person dies with debt, it may impact the beneficiaries of his or her estate. That’s because there’ll be less to give to those named in the will or under state probate law.
There are a couple of scenarios in which a relative may be responsible for a deceased person’s debt: if they shared a joint credit card account with the deceased (but not if they’re an authorized user); and if he or she co-signed a loan for the deceased, and there’s outstanding debt.
What’s the Priority of Claims on the Estate?
As mentioned, the claims of creditors must be paid before beneficiaries or heirs can be given their portion of the estate. But if there aren’t enough assets to pay all the debts that are owed, Michigan statute § 700.3805 provides the order in which claims must be satisfied:
1. Estate administration expenses;
2. Funeral and burial expenses;
3. Homestead allowance;
4. Family allowance;
5. Exempt property allowance;
6. Debts and taxes under federal law
7. Reasonable and necessary medical and hospital expenses from the decedent’s last illness (includes compensation for those attending to him or her);
8. Debts and taxes under Michigan law
9. Any other claims
Note that priority can’t be given within a class of claims. So, the decedent has two medical bills to be paid, they’re given the same preference. Plus, a claim that’s due isn’t given preference over a claim that’s not yet due.
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Debts like credit cards, medical bills, and personal loans that were only owed by an accident victim who died can’t become the obligation of their surviving family members.
With over 85 years of combined legal experience in serious injury law, the Buchanan Firm in Grand Rapids, Michigan provides help and support to those who have been seriously injured due to the negligent actions of another. Our team represents people injured by car crashes or medical errors.
For a free consultation with an experienced car accident attorney in Grand Rapids, contact us. Our firm proudly serves people all across Michigan, including major cities like Grand Rapids and Detroit, and rural towns such as Lowell, Ada, Fremont, Newaygo, Grand Haven, Rockford, and Cedar Springs.
