debts payable on death

[lesser1010]

My daughters partner died recently and he has some credit card debts,It doesnt appear that the estate will cover these debts,what should we do about them?The estate may only cover about 60% of the debts.

[lesser1010]

my daughters partner died recently and he left some credit card debts which it seems the estate will not be able to pay in full.there may only be enough to pay50 to 60% of the debts.any advice would be welcome.

[cerberusalert]

As Executor she has the legal right to ensure that any debts are enforceable before she pays any monies from the Estate. She should send CCA requests to all creditors to which the CCA 1974 applies and then sort the wheat from the chaff.

 

If any of the a/cs have PPI they should be covered by the insurance.

 

If at the end of the day the Estate is not sufficient to cover the remaining debts, your daughter has no further liability. Also she should not be intimidated into paying any creditor above an other, they are only entitled to an equal proportion.

 

If there are other debts or a possibility that there may be debts she has no knowledge of it would be wise to place a public notice in a newspaper such as the London Gazette. Doing this safeguards both her and the Estate if another creditor crawls out of the woodwork at a future date. It gives them a finite window of opportunity in which to make a legal claim.

[cerberusalert]

Depending on what she receives back with the CCA requests will determine which route she needs to take next. If they are unenforceable she can ignore those immeadiately. Those that are enforceable she should then send a SAR request, this will then determine if there are any unfair charges the Estate can reclaim thus reducing any outstanding balance.

 

She should be aware that as Executor she is in no rush, this can take a year or more to settle & although some creditors may try to persuade her otherwise she should stick to her guns.

[debbbbsy]

Is it not also true, that liablity only extends to what would have been his equity in the estate. If her share of the property is 50%,this will be protected (she is not liable for his debts), thay can only go after his share.

 

Debs

[lesser1010]

thanks very much for the replies,My daughter and myself are both executors of the estate and i didn't want to leave either of us open to legalities whilst administrating the estate.I will complete the appropriate paperwork and see wher we stand.Thank you all for your rapid replies to my question.

 

Les

[lesser1010]

Just a thought,Do we have to prove the estate will not cover the debts?If so how do we do that?Do we send them all copies of all documents?

[cerberusalert]

Only if they request proof. The executor must keep all estate assets separate from other assets. For example, all estate funds must be kept in separate estate accounts and not co-mingled with the executor's own funds.

[lesser1010]

Thanks for that info,as i'm sure you're aware it's something new to us and very disconcerting at times.

Edited October 13, 2010 by lesser1010

[cerberusalert]

Have a read through this checklist http://www.armchairadvice.co.uk/bereavement/legaladvice/checklist.asp