There are many things regarding the credit card debt of the estate that a personal representative needs to determine when administering the estate.
Among these are whether the estate has any such debt and, if it does, what the amount of this debt is. This is because paying off the estate’s debts is one of the big parts of the probate process.
Another thing it can be important for a personal representative to track is whether the credit card companies the estate has debts with are following all the rules they are subject to. There are federal laws that apply to the actions of such companies when it comes to estates of the deceased. One is the Credit CARD Act. Among the things this law does is require such companies to comply in a “timely manner” to requests from a personal representative for the deceased’s credit card balance and prohibit such companies from charging additional interest or fees as long as the estate pays the balance off within 30 days.
Whether the credit card companies a person is dealing with over the course of administering an estate are complying with such rules can have major impacts on the estate. So, when credit card debt is among the debts an estate has, it can be critical for the personal representative to understand what the law requires of credit card companies. Responding properly when potential violations of such laws are spotted can also be crucial. Probate lawyers can assist personal representatives here in Massachusetts on both of these fronts.
Source: U.S. News & World Report, “What Happens to Your Credit Card Debt After You Die?,” Matt Schulz, Oct. 24, 2016