Most of the trusts and estates that I work with have enough cash to pay debts of the decedent.
I’m currently the trustee of a trust with little cash until the family home is sold.
I discovered the decedent had about $20,000 of credit card debt accruing about 25% interest.
My sister, Arlene McLean is a banker at Wells Fargo Bank. She told me to call the credit card companies and notify them of the death of the credit card holder.
When I called, each of the companies read from the same script. “You are not personally responsible for this debt. This account is now closed and frozen and will no longer accrue interest or penalties. As the personal representative, you will hear from our probate department.”
Since I was afraid I was going to have to make a big loan to the trust to cover these debts, it was a great relief to me.
You’re never too old to learn something new. Thought you might find this information useful.