Deceased Persons Debts

[janiswhyme2]

Hi there,

 

 

My sister's husband has just this week passed away leaving over £36,000 worth of credit card debt including £16,000 to MBNA. There is no estate and he has pretty much left her in a mess financially, with no savings and just debt after debt.

 

 

She is not a joint signatory and they were his credit card debts and nothing (apart from the fact she was married to him) links her to these. Will she have to pay them off (like she ever could) or do they die with him?

[dx100uk]

they die with him as theres no estate.

 

 

dx

[dx100uk]

http://www.consumeractiongroup.co.uk/forum/showthread.php?174504-Debt-relating-to-a-deceased-person

[honeybee13]

Hello there.

 

My OH dealt with two estates last year where there were borrowings in the husband's sole name. All the companies agreed to write off the debt.

 

HB

[fkofilee]

In summary, they would only be liable if the debts were joint EG - If dual signed credit agreement etc.

Debts come out of the persons estate and if there is none then the debts dont get paid simple.

 

Check below for more info.

 

Pay in priority order

Once you have probate or grant of administration, you can use the money in the estate to pay off the debts that aren’t covered by insurance. Paying the debts first is more important than distributing the estate to the heirs.

 

You should pay off the debts in this order of importance:

 

Secured debts, such as the mortgage.

Reasonable funeral costs and the costs of administering the estate.

Unsecured debts, such as credit cards, utility bills, unpaid rent, Council Tax and other taxes, and repayment of overpaid benefits.

If there are assets, such as a car or a house that if sold, could go towards paying off the debts, it’s an option worth considering.

 

If there are more debts than the estate can pay back, this is called an ‘insolvent estate’. In this situation, it is best to seek the advice of a solicitor or a probate specialist.

[Ruleoflaw]

they die with him as theres no estate.

 

 

dx

 

 

In theory, debts when the person dies should no longer form part of his/ her estate (whatever remains from the dead person), however, it still could lead to claims again the estate. It's a lot of money, ie 36k so the creditor may try to claim it as a debt. However, as it's not joint debt (ie not joint and severally liable), any claim attempts are not likely to succeed. If there is a Will and the Executor (legal way of distributing estate) is appointed but he/ she has not placed in the London Gazette for any debtors to come forward, it 'could' lead to claims against any beneficiaries. This law is the Administration of Estates Act 1925

[Ruleoflaw]

If the debts have not been advertised in the London Gazette, although in theory they should die the creditor may try and claim the amount. This law comes from the Administration of Estates Act 1925. The fact the debts were in not in both names (joint and severally liable) should mean any claims should fail.

[Mr.P]

If the debts have not been advertised in the London Gazette, although in theory they should die the creditor may try and claim the amount. This law comes from the Administration of Estates Act 1925. The fact the debts were in not in both names (joint and severally liable) should mean any claims should fail.

 

One does not "advertise the debts" in the London Gazette. The purpose of a Section 27 notice placed in the Gazette is to give unknown creditors opportunity to come forward and stake their claim. The notice serves to protect the personal representatives (often referred to as the executors) from being held liable for these unknown debts. The beneficiaries can still be pursued for these debts if there were money in the estate to cover them.

 

If the estate is insolvent, the general advice to to step away and avoid doing anything that could be deemed as intermeddling and leave the creditors to fight it out amongst themselves.

[fletch70]

There are rules that specify in what order money is to be paid out. The priority is the funeral and as far as I am aware there is no limit on the cost. Next are administrators or executors legitimate expenses.

 

If this eats up all the money they can not get a bean.

 

When my wife died- we were long separated but still legally married - I just informed all creditors that there was no money. Not one queried it