• Skip to main content
  • Skip to primary sidebar

Ask Liz Weston

Get smart with your money

  • About
  • Liz’s Books
  • Speaking
  • Disclosure
  • Contact

investment account beneficiaries

Q&A: Credit card debt doesn’t disappear when you die

April 14, 2025 By Liz Weston

Dear Liz: I am an 80-year-old female in generally good health. My only family is my unmarried 54-year-old son. The only debt I have is credit card debt of about $30,000 at 0% interest. It’s in my name alone. My house and car have been registered with “transfer on death” designations. My son’s name is on my modest checking account. When I die, is there a legal situation where he would be required to pay the credit card debt? There will be no probate.

Answer: Credit card debt doesn’t just disappear when you die. The debt would become the responsibility of your estate. Transfer-on-death options avoid probate, the court process that otherwise follows death, but creditors can still go after the property that’s been transferred.

Depending on state law, creditors may have longer to make their claims than if your estate had gone through probate or if you had used a living trust, says Jennifer Sawday, an estate planning attorney in Long Beach.

That’s among the reasons why transfer-on-death designations may not be the best solution. Consider making an appointment with an estate planning attorney to discuss your situation and possible alternatives.

Also, your 0% interest rate is temporary. Once the current teaser rate ends, you’ll likely pay a much higher interest rate and your monthly payments could jump. If you can pay off this debt, that’s probably the best course. If you can’t, you may want to discuss your situation with a bankruptcy attorney.

Filed Under: Credit & Debt, Estate planning, Q&A Tagged With: beneficiaries, credit card debt, Estate Planning, investment account beneficiaries, transfer on death, transfer on death deeds

Friday’s need-to-know money news

January 24, 2020 By Liz Weston

Today’s top story: What you need to know about the new FICO score. Also in the news: 5 reasons to add beneficiaries to your investment accounts now, 5 home improvements that may not pay off when you sell, and what to do if you lose your credit or debit card while traveling.

Worried About the New FICO Score? Here’s What to Know — and Do
Get the details.

5 Reasons to Add Beneficiaries to Your Investment Accounts Now
Making things easier on your loved ones.

5 Home Improvements That May Not Pay Off When You Sell
Skip the chef’s kitchen.

What to Do If You Lose Your Credit or Debit Card While Traveling
Rule #1 – Don’t panic.

Filed Under: Liz's Blog Tagged With: credit card, Credit Score, debit card, FICO score, home improvements, investment account beneficiaries, lost card, traveling

Primary Sidebar

Search

Copyright © 2025 · Ask Liz Weston 2.0 On Genesis Framework · WordPress · Log in