Son doesn’t owe dad’s credit card debt

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in Small Business Tax

Q: My elderly father has a significant amount of credit card debt. I am his only living heir. Will I be responsible for those debts when he dies? J.W., Paramus, N.J.

A: No. When a person dies, his debts are paid out of his estate by the estate's executor. But that means those post-death credit card payments will reduce any money coming to you as the sole beneficiary. One caveat: If you're a co-signer on any of your father's credit cards, you can be held personally liable for the debt. In such a case, you should make sure those debts are paid off while your father is alive.

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