What To Do When A Credit Card Holder Passes Away (2024)

When a close friend or family member passes away, the last thing you may want to think about is financial matters. Managing the finances of someone who has passed away may seem overwhelming, but it's important to start relatively quickly to minimize the risk offraudoridentity theft.

Fortunately, representatives at banks and credit card companies understand this and will help make the process as easy as possible. Here's a step-by-step look at what to do when a credit card holder passes away.

Step 1: Notify the three major credit bureaus

Credit reporting companies regularly receive notifications from the Social Security Administration about individuals who have passed away, but it's better to also notify them on your own to ensure no one applies for credit in the deceased's name in the meantime.

Send letters to each of the major credit bureaus —Experian,1Equifax,2andTransUnion3— and include the deceased's legal name, Social Security number, date of birth, date of death, and your full name and mailing address. You will need to provide a certified copy of the death certificate, a copy of your identification, and proof of your authority over the estate (e.g., a marriage certificate for a spouse or a Letter of Testamentary or court order naming you as the executor).

When you write to the three big credit bureaus, it's a good idea to also request a copy of your loved one'scredit report. This will ensure you know about all open accounts that need to be closed. While you may find credit cards in a wallet or statements in a desk drawer, the only way to know for sure that you're canceling every single account in the deceased's name is to order a copy of their credit report.

Spouses and executors of the estate can make this request when they write to each of the credit bureaus to let them know of the person's passing. Just be sure to include the deceased's last known address in your letter.

Step 2: Notify financial institutions

Using the credit report as your guide, contact all banks and credit card companies at which the deceased had an open account and close those accounts as quickly as possible. You will need to provide a certified copy of the death certificate to close the account.

Step 3: Figure out who is legally responsible for any credit card debt

If your loved one died with outstanding debts, untangling who is legally responsible for the credit card debt can be tricky.

Credit card debt doesn't disappear when the credit card holder passes away. If the account was jointly held with a spouse or someone else co-signed the credit application, that person will be 100% responsible for the debt.

If the debt is in the deceased's name alone, a surviving spouse may still be responsible for the debt if they live in one of thecommunity property states4: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin, and Alaska (if a special agreement is signed). Different states have different rules for dealing with the debt of a spouse, so it's a good idea to talk to an attorney.

Step 4: Follow up

After closing credit card accounts and notifying the credit bureaus, follow up to ensure the accounts were closed and no fraudulent accounts have been opened. Ask for written confirmation and file it with other documentation for the estate.

Facing the death of a loved one is a daunting journey. Knowing how to handle their financial affairs can help ensure you don't have to deal with fraud or identity theft during an already difficult time.

If one of the other financial affairs you need to deal with is your loved one's bank accounts, check out this article onhow to close a bank account when a loved one dies.