Credit Card Debt After Brother is Deceased?

[bcage49]

My older brother is terminally ill and has credit card debt of $30,000! His wife of 6 months was unaware of his credit card debt until recently, as it was all accumulated before they were married.

After he passes, will his debt then be her responsibility? Even though it was debt incurred prior to their marriage and in his name only?

 

[dee_dub]

If the debt was all accrued before the marriage it won't be her responsibility, but the debts will be paid out of his estate before anything is distributed to his beneficiaries.

 

[bcage49]

Would it help for him to file bankruptcy since he is not working?

 

[dee_dub]

Help with what? And is your brother actually insolvent?

I suspect it will pretty much come out a wash from his wife's perspective. Either the creditor will be paid first because it has priority in bankruptcy, or it will be paid first because it has priority over the beneficiaries of the brother's will.

I would recommend your brother see an estates lawyer to ensure he's maximizing whatever he might have to leave. If he's expecting the wife to get anything, he should also ensure his will is appropriate (marrying a new wife might have voided his previous will) or that the laws of intestacy (if he has no will) will work appropriately.