San Jose Estate Planning Attorney: How to Deal with Creditors After Your Loved One Passes

Dealing with Creditors – One of the many challenges that families face after the passing of a loved one is managing the outstanding debt left behind. As statements begin to trickle in and creditors attempt to make contact, family members often wonder which debts need to be paid and in what order.  Unfortunately, debt doesn’t magically disappear after the passing of a loved one, and all outstanding balances will eventually need to be settled. 

If you ever find yourself managing the outstanding debt of a loved one after his or her passing, here are a few steps you can take immediately to make to process a little easier:

  1. Contact the deceased’s bank to put a freeze on his or her accounts. This will help prevent automatic debits from being taken out of the proceeds of the estate.
  2. Begin to gather all statements that come in the mail and electronically if you have access to your loved one’s email.
  3. If possible, contact the creditors of the deceased to let them know of your loved one’s passing. Find out how to freeze the accounts if possible or cancel credit cards out altogether to prevent theft.
  4. Start a relationship with a California probate attorney to begin the process of administering the estate. Your lawyer will provide you with guidance and will take the debtors off your back.
  5. If creditors call, do not discuss anything with them. Let them know that you are being represented by an attorney, and direct them to contact him or her.

From this point forward, the debt will be dealt with as you close out the estate. Again, your attorney will be able to help you get a clearer picture of how the accounts will be paid out. If you have additional questions about dealing with creditors after the loss of a loved one, please contact us. We have law firms located here in San Jose and throughout the state of California and we are here to serve you and your family.

If you have any further questions about estate planning and strategies to shield your wealth, or if you’d like to have your current asset protection plan reviewed to make sure it still meets your needs, please contact us at one of our offices located throughout the state of California 800-244-8814 to set up a consultation.

Continue Reading

Upstream Planning
Protection and Flexibility in Trusts

Skip to content