Is it ok for the executor of the will to use the deceased person’s credit card to pay bills for the estate?

I was my dad’s executor and also on his checking and savings accounts. He had two credit cards. Within a month of his death one of the credit cards was cancelled by the issuer. When I talked to them I was told they’d found out about his passing from social security. The funeral home informed SS. The other I closed by calling them, I was concerned they would find out about the death the same way. No issues with his banking or being frozen

Bectwin, thanks for the update, and congratulations on finding an acceptable solution.   Sometimes sacrifices need to be made (such as to the merchant) to move forward.

Your post reminded me of something an engineer for whom I once worked told me:  he chooses his battles carefully, and doesn't waste time with ones that aren't winnable.

Best wishes to you and your family moving forward!

Thank you everyone for your input. Firstly I do not have any concerns whatsoever about my sister being up front and honest. Second, my sisters name is on both the savings and checking accounts already, I think done when she became POA. We thought it was on the credit card as well until now. All with the same bank. We discussed with the lawyer at the time of filing for probate about informing the bank and our concerns with the account being frozen. He said we were ok to do what we did as she has been signing her name as executor. We were concerned the account would be frozen despite her name being on it as we know of several people this happened to. It shouldn’t have been done but it was. If that had been the case we would not have been able to pay the bills.

All her SS, retirement etc all were stopped and any overpayments have been paid back. Using these accounts has been specifically for maintenance of Moms properties and assets until everything could be finalised. And using the credit card is like GardenArtist says, it keep everything accountable. Everything has been slowed down by the lawyer being slow, my sister living out of town and having such a demanding job and me living out of the country.

Again I do NOT have ANY concerns about my sister taking advantage of her position. She is my twin and I trust her completely. Both of us thought her name was on the credit card as well.
But we have had some advice now and it looks like we are nearing the end of the situation anyway. We’ve decided to just pay the business we are having a dispute with, leave them with honest reviews online and move on. Just don’t have the time to fight it. Then we can deal with the credit card company separately and get everything sorted out. Finally.
Thank you all for your help and support.

I’m not understanding.

I’m reading here that a checking account will be frozen if SS has to get back its money for a month in which a person dies. What if someone else is on the account, as well?

First, I’m asking for when my mother dies. I am on her checking account.

Second, how about if my husband passes away? Would SS freeze our joint account? How then, are household bills paid?

My husband is only 60 now, but the caregiving part of my Mom’s situation case came on suddenly. I want to be prepared for OUR future, as well.

I can't see any CC company allowing an estate to use credit as a means of payment, they have no way to guarantee that there are sufficient funds held by the estate to get their money back (unless of course the executor accepts personal responsibility, and I sure as heck wouldn't ever recommend that!).

I’m going through probate for my dads estate right now in Michigan. Before I could use any funds from his estate I had to file with probate court, get the process started and approved and get “Letter of Authority “ from the probate judge. It all took several weeks. Once approved I opened an estate account which I have now used to pay some expenses.

You Sis sounds hinky to me. Find out if she has court authority to use these funds.

I've used a credit card, checking and savings accounts initially held jointly with my father to pay post-death trust expenses, with absolutely no problems.   But since we held the account jointly, it's a different situation than you face.

I have some concerns about using a card for someone who's died w/o informing the credit card holder.   Your sister should contact the card holder and ask specifically how to insure that she can continue to use it.  Don't ask "if", but rather "how".

There may be some issues with adding the Executrix a/k/a Personal Representative designation to a card.   Banks may not issue to an entity, but will issue to a person.  I ran into that when I tried to retitle my sister's vehicle; the MI Secretary of State refused to retitle to an entity as opposed to a person, so I had to retitle the vehicle in my name.  

A similar issue arose with  insurance policies; I had to retitle in the name of the Trustees, as agents said an insurance company won't insure an "entity".  

If your sister held bank accounts jointly, w/ survivorship rights, with your mother, she should be able to continue using them, but she definitely should have informed the bank so they're aware of the situation.

I would spend some quiet time assembling all the facts, death certs, etc., then create questions to ask both the card holder and the bank, phrased in the sense of (a) what, if anything, is required to ensure that your sister can still use the accounts, and (b) HOW to ensure that those accounts remain available to your sister during any transition of ownership and titling.    If you have a bank with knowledgable staff, they should be able to help.


As to the dispute, I would approach the holder again as "HOW" do we correct the situation so that the card can be used, or should a new card be issued?   If you continue to phrase the issues as "how to correct/change", you or your sister are establishing a position of wanting to correct the issues, and advising the card holder that's your intent.   

If the card holder refuses to consider the charges viable b/c the card was issued in your mother's name only, then I would not let them off the hook, but rather ask again "HOW" the situation can be changed (so that you don't have to turn to a different card holder  (hint, hint...find a solution or we'll have to take our business elsewhere).

When I ran into problems of a business not wanting to do something, I found that approaching it as I've described above (the "how" method) worked much better, as it established a cooperative approach on our side, and seemed to let them know I wasn't there to battle with them (even if privately I might have considered it.)

If your sister isn't on the account for the credit card, no,she cannot use it. That's credit card fraud. All banking related to your mother would be "To the Estate of (Mom)," not merely "Mom," because "Mom" is deceased.

If your sister is on an account, that's different. The account can remain open, but she can't sign Mom's name or anything like that because your sister is the sole owner of the account now.

I don't understand why Sister is using a Credit Card at all. It just needs to be paid by the estate anyway. If it were me, I would only be using the checking account and savings to pay bills of the estate. When the money is gone, its gone. Sister can get Probate going. She should have a short certificate to handle the estate. An estate account needs to be set up where all the transactions are done. There will be an accounting of monies spent for the beneficiaries. I did all applications. Got a lawyer involved in the sale of Moms house, he finished the Probate.

well my moms discover card is still active ( she passed 1/8) because I did not close it in case any other bills came through from her medical bills. None in the last 2 months so I plan to close it this month. it is direct pay, and I have left her account ( with my name on it) open in case any came through, so they would get paid. No one has closed it here in Maryland.., I think I have to? And all her banks know she has passed.

The normal process is that, with the funeral home or cremation facility notifying the Social Security Department, then the Experian and other 2 credit agencies (Transunion and I forget the name of the other) are notified also. This results in cancellation of the card. So I cannot frankly imagine a credit card company still having a credit card in the deceased name, though I guess anything is possible. As executor your Sister will of course be in charge of the accounts just as she was as POA. It is a simple matter of an attorney giving her the papers to say she is executor. Then she distributes the estate after she pays all bills, gathers in real estate and etc into the estate. The Lawyer assisting the executor speaks to the executor of the estate, not the entire family.
It sounds as though the communication has broken down in the family, and I think you may not be in possession of all of the facts in the case. For your Sister to continue to use your deceased Mother's credit card (unless she is on the account, and as POA she likely was) would be fraudulent; I doubt you are accusing your Sister of fraud? But I am uncertain of what you ARE feeling about her.
Banks are often in possession of all the facts in a death as well; often accounts that received Social Security are frozen if a month's SS needs to be recovered.
I really suggest someone in the family open communication with the Sister in order to ascertain where things stand. Do understand that Banks, etc. will not communicate with family, but only with the POA and the Executor.
Your Sister, as Executor of the Estate will need to file in probate court; this is a public document in the county itself.
Your question involves "bills of the estate". Those bills are owed by the estate, and the executor also can collect fees for acting in this capacity, as well.

It was stated that sister's name was on the savings account so I don't see how that is a problem. I think the credit card could be an issue. When I opened the last credit card for my mother I made sure I was on the same account. We each had cards with our own names but it was the same account. I would suggest your sister going into the bank and speaking with someone,explaining the lawyer problem. Hopefully there is money in the savings account to pay bills. I am jointly on a checking account with my mother. These details help greatly. I realize it is too late for that. I would hope there might be other lawyers if the probate lawyer was with a firm. I don't know how you solve that if he was acting alone and has gone missing. If you freeze accounts that your sister was on you may have more problems. Ideally I would think it would be best to pay legitimate bills with money in the savings account.

After FIL died, DH got 10 notarized copies of the death certificate. He had them on hand for whenever he had to visit a bank, credit union, cc company...even the Drs offices. He didn't want to have ANY issues with how he was distributing funds. Every check was signed by him as "executor for and behalf of Mr. E, who is deceased."

CC's were shut down immediately. Banking continued but ONLY the executor could spend any money from dad's accounts.

Even though FIL'S estate was relatively small (under $900,000) DH was still completely transparent in his dealings.

We had zero financial issues. FIL's atty gave DH a 1/2 hr 'tutorial' so he'd know what to do.

You can straighten this out--and remember this as a cautionary tale.

Good Luck unsnarling this.

I'm not an American but I'll tell you what I know - She was supposed to inform the CC company, bank and every other interested party that your mother is deceased and that would have frozen the accounts, so what she has been doing is not legal and could even be construed as fraudulent.

No your sister should not be using the credit, checking or savings account. The bank should have been notified of your mother’s death.