Do Debts Against the Estate Affect an Heir's Credit Report?

Generally, debts do not affect an heir's credit report unless the heir was legally responsible for the debt prior to the death. Heir debt liability depends on the account type, where the heir lives and his relationship to the deceased. Debts against an estate are taken from estate proceeds. If estate assets cannot cover the debt and there are no legally responsible debtors, the accounts are written off as a loss.

Community Property States

Delinquent accounts may be reported on the surviving spouse's credit report. If you are the surviving spouse, and you live in a community property state, you are jointly responsible for debts and assets accrued during the marriage. Additionally, jointly held secured debt in one or both names may be foreclosed upon or repossessed if payments stop. Community property states include Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. Alaska residents may be subject to community property laws if they opted into the agreement.

Joint Accounts

Excluding community property rules, unless you are a joint account holder or you co-signed for an account, you as the heir are not responsible for the debts against the estate. Authorized credit card users are not the same as co-signers, but the account information may end up on your credit report. You can have the information removed by contacting the creditor and requesting your name be removed as an authorized user.

Considerations

Lenders and debt collectors are not fussy about how they are paid as long as the debt is settled. Creditors may contact heirs and family members in an attempt to collect on the deceased's debts. If you are not legally liable for the debt, do not claim responsibility for it. You may send a certified letter telling the lender that you do not want to be contacted regarding the debt. Lenders cannot contact you again unless it is to notify you of legal action against you.

Correcting Credit Report Errors

Dispute credit report errors by writing to the credit-reporting agency with proof of the mistake. The agency must investigate your claim and remove inaccurate information. Additionally, send the same information to the lender and request proof of your financial responsibility and request that the lender correct the information. If the investigation does not end in your favor and the information remains on your credit report, a notation will appear stating that you dispute the information.