Barclays loan question after partners death.

[rudy691]

Hello.

 

Posting this on behalf of my friend.

 

Sadly, a few weeks ago, his wife died due to cancer.

They were a married couple.

 

 

During the marriage, she took a loan from barclays and had a ISA with them too (roughly about 5 grand savings in there).

 

 

My friend phoned them up to ask about what's going to happen with the loan after she passed.

They said he will not have to pay this loan, but it turns out they've used the money from ISA account to settle some of it.

 

My question is - is this a legal process ?

 

Thanks in advance for your help guys.

[Guest]

double check the terms of the loan, sometimes it says what happens re death.

otherwise, they may be entitled to offset. and, could poss claim it from the estate anyway.

when you say 'My friend phoned them up to ask about what's going to happen with the loan after she passed. They said he will not have to pay this loan..'

did they mean your friend (the next of kin?) or the deceased.

[AndyOrch]

" If you’re named in a will to administer the estate, you’ll need to prepare the estate accounts. These are needed to identify and collect assets and pay any outstanding money owed.

Where there’s money owed to us, such as overdrafts, loans or credit cards, then we may take the amount from the account before we close it and release the closing balance. "

 

http://www.barclays.co.uk/closing-accounts-when-someone-dies

 

 

ISA accounts

Tax exemptions cease upon death.

In accordance with the ISA terms and

conditions, any ISA held by the deceased

will be closed and the funds transferred

to a new Net Personal Estate account,

opened in the name of the deceased.

To ensure the deceased’s estate is not

disadvantaged, the gross interest rate

will be equal to, or higher than that of

the closed ISA(s).

 

https://ask.barclays.co.uk/resources/barclays/day2day_banking/2012

 

Check the above that its not been transferred rather than offset

 

 

...if there is a Will /representative or executor then Barclays need to be questioned.

 

Andy

[CrappoMan]

I would take issue with the fact that Barclays think they can help themselves to the money before it is aggregated with the rest of the estate.

There is a good reason they should not do this, despite their insistence that the T&C's of the loan say they can.

 

That reason is simple: They do not know the extent of the estate assets or the size of the estate's liabilities. If the liabilities exceed the assets, the creditors (Barclays included) are only entitled to a pro-rata proportion of the outstanding balance from the residual estate, after funeral expenses have been paid.

 

If they help themselves without knowing the full estate facts, they could be getting a larger chunk of the estate than they are entitled to.

[Rexroth]

No that is not correct they have every right to consolidate accounts.

[AndyOrch]

No that is not correct they have every right to consolidate accounts.

 

So no need for probate or executors of the estate ?

[Guest]

So no need for probate or executors of the estate ?

technically, if its under 25k, an account can be released on request without probate/letters of admin. and, if releasing, then wld prob pay off their own debts first (as per those terms for eg posted).

but, afaik, if there is a will, then they wld ask for a copy of it prior to doing so.

if things need probate etc, then dont request release until after probate. but, the flip side there is if money is needed in the mean.