Hi guys

some time ago a friend of mine signed as a guarantor for a friend of hers. My friend has now passed away.

Wonga are now pursuing her daughters for the loan as her friend has since defaulted.

My question is, can they do this as her estate has now been sttled. ?

Hello and welcome to CAG. I expect people will be along later to advise you.

Best, HB

no Wonga cannot.

A few questions if you don't mind.

* How long ago was the death of your friend ?

* Had a notice been posted in the London Gazette ?

* How long did it take for the executors to distribute the estate ?

* Who were the executors ?

In theory, Wonga could pursue the beneficiaries, but there is a process that they should follow (and this assumes the executors had done their part correctly) and they have to prove that they have a valid claim against the estate.

Yes wonga can if the daughters were the executors of the will and have not followed procedures correctly.

Namely giving notice that the person has died and if anyone has a claim against the estate to apply for recompense

The death was in oct.

I have no idea about a post in the gazette sorry.

the estate was settled in April.

the executors were two daughters.

The daughters were unaware of the loan until after the death when the person defaulted on his loan.

hope that helps.

Can death revoke a guarantee?

Generally speaking, the answer is ‘yes’, where the consideration for the guarantee is divisible. Once notice of the death is received, the guarantee is revoked from the date of the notice in relation to future transactions. Notice doesn’t need to be direct or formal.

Does the wording of the guarantee help it to survive death?

Death may not be the end of the matter. The next task of a creditor seeking to rely on the guarantee is to look at the wording of the guarantee itself to see if there is anything that may negate this general position. If the wording specifically states that the guarantee is continuing and not revoked by death, or the guarantee extends to the guarantor’s executors or personal representatives, there is a good chance that it will survive the death of the guarantor, allowing you to make a claim on their estate.

Regards

Andy