It is one of the cruellest realities of modern bereavement. You have just lost a parent. You are navigating the fog of grief, planning a funeral, and trying to comfort your family. Then, the phone rings.

A polite but firm voice on the other end says they are calling from a bank, a credit card company, or a debt collection agency. They mention an "outstanding balance." They ask for payment details. They might even imply that "it’s what your father would have wanted" to settle matters quickly.

Panic sets in. Do I inherit my dad's debt? Am I going to lose my house to pay off his credit card?

Stop.

Before you reach for your own wallet, you need to know the law. In the vast majority of cases in England and Wales, you do not inherit debt.

The Golden Rule: The Estate Pays, Not You

The most important legal principle to understand is that debt belongs to the person, not the family.

When someone dies, their money, property, and possessions become their "Estate." Any debts they left behind (credit cards, loans, overdrafts) must be paid using the money from the Estate.

They are NOT paid from your personal bank account.

If you are the Executor (named in the will) or Administrator, your job is to use the deceased person's money to pay their debts. You are simply the manager of the funds. You are not the guarantor.

The Exceptions: When YOU Might Pay

There are only a few specific scenarios where you might be personally liable:

1. Joint Debts: If you had a joint bank account, loan, or mortgage with the deceased, you are usually liable for the full remaining balance (not just half).

2. Guarantors: If you signed a specific agreement acting as a guarantor for their loan.

3. The "Authorised User" Trap: Note that being an "additional cardholder" on a credit card is usually NOT the same as being a joint account holder. If you just had a second card for their account, the debt is likely still theirs alone.

What If There Is No Money Left? (Insolvency)

This is the most common worry. Dad had £5,000 in credit card debt, but only £500 in his bank account.

In this case, the Estate is "insolvent."

The law has a strict "Priority Order" for who gets paid. Generally:

1. Secured Creditors (e.g., Mortgage lenders).

2. Funeral Expenses (Reasonable costs usually take priority over credit cards).

3. Unsecured Creditors (Credit cards, unsecured loans).

If the money runs out after paying the funeral and the mortgage, the credit card companies get nothing. The rest of the debt is written off. They cannot come after you, your house, or your savings to make up the difference.

Why Do They Keep Calling?

If the law is so clear, why do collection agencies harass grieving families?

Often, it is a "fishing expedition." They know that if they wait for the formal Probate process, it could take months, and they might get pennies on the pound. But if they can pressure a grieving son or daughter into paying by card today out of fear or moral obligation, they get 100% of the money immediately.

They rely on your confusion. Do not let them win.

The Defense Strategy: Your Action Plan

If you obtain calls from creditors regarding a deceased relative's debt:

1. Don't Agree to Anything.

Never say "I will pay this." Never give your personal card details.

2. State the Facts.

Tell them clearly: "Please note, [Name] has passed away. I am the Executor/Administrator. All debts will be handled through the Estate in due course. The Estate is currently being assessed. Please place this account on hold and stop calling me."

3. Demand Everything in Writing.

Refuse to discuss details over the phone. Ask them to send a formal statement of the debt to the Executor's address.

4. Use the "In Dispute" Template.

If they continue to harass you implies you are personally liable, considering ra template such as the following:

To [Creditor Name],

Re: Account [Number] - Deceased

I am writing regarding the above account for the late [Name].

Please be aware that I am acting as the Executor/Administrator. Please note that the debt is a liability of the Estate, not me personally. I will not be making payments from my own funds.

The Estate is currently being administered. If there are sufficient funds, creditors will be paid in accordance with the statutory order of priority. If you continue to contact me personally demanding payment, I will report this as harassment to the Financial Ombudsman Service.

Yours faithfully,

[Your Name]

Conclusion

Bereavement is hard enough without financial bullying. Remember: The debts died with them. You are there to manage the paperwork, not to inherit the burden. Take a deep breath, keep your wallet closed, and let the process take its course.

Disclaimer: This article is for information purposes only and does not constitute legal, financial or tax advice.