Losing a loved one is never easy. When they are sad, the last thing you want to think about is their money. Getting rid of the dead person’s credit cards is an important part of settling their estate, though. If you follow this guide, the steps will be very clear and easy to understand.
Gather Information on the Credit Card Accounts
The first step is to gather information on all of the deceased’s credit card accounts. Here are some tips:
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You can find their credit card statements in their mail, files, and wallet. Write down the account numbers and names of all your credit card companies.
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Request a copy of their credit report, which will list all open accounts. You’ll need to provide a death certificate to get the report.
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If you’re the spouse or executor, you can also call credit card companies and ask if the deceased had an account They will need to verify your identity
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See if the person who died wrote down a list of usernames and passwords. This can make the process much easier.
As you gather information note whether the accounts are individual or joint, and if there are any authorized users. This will impact how you handle the next steps.
Contact Credit Card Companies
Once you know which accounts you want to cancel, call each credit card company. Here’s how:
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Call the number on the back of the card and ask for the “Estate Department”. Explain that the cardholder has passed away.
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Provide documentation like a death certificate and executor paperwork if requested.
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For joint accounts, request to remove the deceased from the account. The other owner will remain.
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For individual accounts, request to close the account entirely. Accounts with authorized users should be closed as well.
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Ask about any outstanding rewards. See if you can redeem these on behalf of the estate.
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Get written confirmation that the account is closed. This protects you from fraud.
Resolve Outstanding Balances
If there is still a balance owed on the credit card account, here’s how to resolve it:
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Do not pay off balances with your personal funds. Creditors must make a claim through the estate.
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The executor will use estate assets to pay debts through probate court. Credit card debt is typically unsecured.
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Surviving spouses may be responsible for debt in community property states. Consult an attorney.
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Authorized users and family members are generally not responsible for the deceased’s credit card debt.
Cancel Recurring Payments and AutoPay
Go through the deceased’s files and statements to identify any recurring payments or automatic payments set up on the credit cards. These could include:
- Utility bills
- Cell phone service
- Streaming services like Netflix or Hulu
- Gym memberships
- Subscription services
Contact each company to cancel payments from the deceased’s credit card. Just closing the card itself may not stop recurring charges from going through. Getting ahead of this prevents headaches later.
Destroy the Physical Cards
Once accounts are closed, destroy all physical credit cards belonging to the deceased. Shred the cards themselves, and cut through any chip or magnetic strips. This prevents the cards from being used for fraud if someone accesses them.
If the deceased had authorized users on their accounts, collect and destroy those cards as well.
Freeze Credit Reports
Freezing credit reports prevents identity theft and fraud. Contact Equifax, Experian, and TransUnion to freeze the credit files of the deceased. This locks the reports against any new accounts being opened.
Provide the credit bureaus with a copy of the death certificate and your documentation giving you authority over the estate. They will guide you through the freezing process.
Wrapping Up
Canceling a deceased loved one’s credit card is not the most pleasant task, but doing it promptly and properly protects their identity. While credit card companies are used to handling these situations, having organized records of the deceased’s accounts makes things much easier.
Be prepared to provide documentation proving your authority over the estate. Get written confirmation when accounts are closed. And don’t forget to freeze credit reports and shred any physical cards. With these steps completed, you can close this financial chapter respectfully and prevent issues down the road.
Notify the issuer
Once you know whether the deceased shared the account with anyone, it’s time to notify the issuer. In the case of a joint account, you or the joint account holder, will simply need to remove the deceased’s name from the account.
For all other cases, you will need to cancel the account. It’s important to do this as quickly as possible to avoid any possible fees or accrued interest on the accounts.
Call each card issuer and ask to speak with “Deceased Account Services” or the “Estate Unit.” Many card issuers have dedicated lines for this that you can find on their websites. When you notify the issuer, be prepared to present an original copy of the death certificate and any important court documents pertaining to the estate. Not all issuers request this information, but many do, so it’s helpful to have access if necessary.
Transferring credit card account ownership
If you’re the authorized user on the card and were hoping to keep the card open, explain the situation to the issuer. Most of the time, a credit card issuer will not transfer account ownership to an authorized user, but the issuer may be able to help the user open a new card with similar rates.
Some issuers, however, will transfer account ownership in specific circumstances. American Express, for example, allows individuals over the age of 21 to send a request in writing to take over eligible personal credit card accounts, but they must go through a credit review to do so.
How Do I Close A Credit Card Account Of A Deceased Person?
FAQ
Do credit cards get cancelled after death?
When someone passes away, it’s often up to their family to settle their estate, which includes all of their finances. If your loved one had credit cards, it’s important to cancel their cards once they pass away since credit cards typically don’t automatically cancel when the cardholder dies.
What to do when a primary credit card holder dies?
You’ll need to show a certified copy of the death certificate, your ID, and proof that you have the power to handle the estate (e.g. g. , a ….
What happens if a credit card holder dies?
When a person dies, their credit card debt becomes part of their estate, which is the total value of their assets and liabilities. The legal heir, who inherits the estate, is responsible for paying the credit card debt from the available assets, such as cash, bank accounts, investments, property, etc.
Do I need to freeze credit for a deceased person?
Yes, freezing a deceased person’s credit is a crucial step in protecting their financial legacy and preventing identity theft.