Debts & Death

[bigegg]

What happens when someone dies owing money (allegedly!) ?

 

I have a friend whose husband has just died (allegedly!) owing 25K + to various banks and credit cards.

 

None of the debts are in friends name (and most accrued before marriage).

 

Will it be just a matter of writing letters to OCs including copy of death certificate, telling them to write debt off?

 

Husband had no assets - council tenant with very few personal possessions.

[cerberusalert]

The Executor should write to all the creditors informing them that there is no Estate & that they will be receiving zilch. His wife is not responsible for his debts, end of.

[bigegg]

Kewl.

Wife is executor - and I've just discovered today that the 200K life insurance policy is payable directly to wife "in trust" so doesn't become part of estate.

 

I will be writing some letters for her in next week or so.

 

I think she'll be happy.

[JonCris]

The creditors WILL try to con her into admitting the debts you must warn her of this - Also I suggest you have her give you a 'letter of authority' permitting you to deal with this aspect of her financial affairs - that way you may be able to stop her receiving distressing demands many of which will be addressed to her deceased husband

[JonCris]

Forgot to add that when they discover there is a trust fund that will incentivize them into action so as it's not part of the estate there is no requirement to disclose it