Father Passed away recently - Funeral costs & current, savings A/C & Bcard debt - What comes out 1st?

[pj almost 50]

Hi Guys and Girls.

 

It's been a few years since I've posted on here. 

 

In February this year unfortunately my father passed away. 

Im in the process of sorting out his financial affairs, having notified Barclays of his death his accounts are all stopped.

 

He has a savings account,

a current account and

two barlaycards.

One credit card with a balance of approx £6000 one with a balance of £750 my mother is also a card holder on this account.

 

He has Approximately £8000 in his savings account.

On speaking with Barclays their immediate responce has been that the debit balances are to be cleared from his savings and current accounts.

Any surplus money can be paid to the funeral directors on reciept of their invoice and any money left will be forwarded to my Mother.

 

In the short term I have forwarded the funeral directors invoice, a death certificate and am still awaiting Barclays to contact me again. 

 

My question is (and yes I appreciate its a little unethical)

but if I sent  a CCA request as proof that my father had indeed signed an agreement (if they can obviously find it after 30 + years) that would confirm that indeed what they are saying will happen.

If the can't then the minefield could be opened that they aren't entitled to deduct monies from one account to pay a debit balance in another?

 

Any thoughts or pointing in the right direction of approach would be appreciated.

 

Cheers

 

PJ

 

 

 

 

[dx100uk]

regardless to if/if not they can produce age old agreements, which I doubt they can anyway, I don't think there is anyway to stop them.

 

this is always a very big pitfall of keeping any money/income anyone has, inc yourself, in accounts with a bank you have debts with.

 

 

[pj almost 50]

 

Unfortunately, My Dad always "knew best".

Wouldn't talk about finances nor take advice.

I told him some years ago to transfer any balance onto a different lender. Obviously, he didin't

 

The difficulty here is there are terms and conditions for both his current account and credit card accounts..

 

I thought it would be a hiding to nothing but thought I'd ask the question.

 

[slick132]

I'm not sure on this and would need to check more thoroughly to make certain , but ........

 

Isn't the credit card balance an unsecured debt, meaning the funeral cost would take priority and have to be paid from the £8K  bank balance.

[dx100uk]

the funeral costs must come 1st yes , that's the way my 2 were then the rest got swallowed, but I got a good portion of it back from Barclays because of unlawful charges across accounts in joint parents name and individual A/C's

[pj almost 50]

I've been told that by someone however, the lady I spoke to at Barclays basically said it's the other way around.. Communication with Barclays is slow at the moment due to staffing levels and people trying to get through on the phone re' other issues.. 

 

As an absolute minimum I'd expect the funeral costs to come out of my late father's estate then what money is left pay the C card debts. As yes as you say they are and unsecured debt.

 

I'll update as I learn more directly from Barclays over the coming weeks.. 

 

 

[pj almost 50]

Thanks guys..  Keep you posted

[dx100uk]

I've updated your title to better reflect the issue.

 

dx

 

[pj almost 50]

OK.. Cheers for that..  

[slick132]

Hi PJ,

 

Don't rely on Barclays to tell you the truth about this. They tend to look after their own interests !!

 

Once you're sure of your rights, put your position to the bank in writing. Do not rely on phone calls.

 

 

[honeybee13]

I agree with the guys, funeral expenses first. This is a website I used when I was dealing with probate for my mother and my OH found it useful too. If you scroll down a bit, there's a list of priorities in order. Barclays can't change that.

 

https://www.bereavementadvice.org/topics/probate-and-legal/insolvent-

estates/

 

And another one from the government's Money Advice Service, scroll dow to Step 3.

 

https://www.moneyadviceservice.org.uk/en/articles/dealing-with-the-debts-of-someone-who-has-died

 

HB

[pj almost 50]

Thanks HB 

 

Having read this bit from your first link.. 

 

"WARNING: If an organisation such as a bank has multiple assets, e.g. a current account, a savings account, a credit card and a loan, they can legally put all those accounts together to discover if there is an overall positive or negative balance. Therefore it will probably not be possible to use money from a savings acount with money in it to pay for a funeral, if there is an overall debt to the bank."

 

Based on that I'd say that Barclays will lump it all together. Find a positive balance of approx £1500 and send that as part payment of the funeral invoice. 

 

However, that would depend if priority is given to paying the funeral costs first.. Then they put the account balances together to calculate what's left positive or negative, in this case it would be negative as the funeral cost was approx £4350.

 

Based on the above warning Barclays will ensure they're paid back first

 

[honeybee13]

Have you tried asking Barclays to release funds for the funeral invoice?

 

HB

[pj almost 50]

I'm awaiting a letter from them setting out the position.. I attempted to phone them on Thursday last week as they had written to my mother detailing the credit card details and said they hadn't received a death cert, which were certain we sent. Anyway it was a recorded message due to covid 19 etc the call waiting time was an hour. So I hung up. 

 

As above though, it's wise to communicate in writing. I'm expecting something to land on the mat any day now. See what they say. 

[slick132]

I suggest you write to the bank rather than wait for them to contact you.

 

Take the initiative - you really have nothing to lose.

[FTMDave]

The OP has already written to the bank.

 

However, don't let things drag on.  In a similar situation I had appalling service from a bank (all to do with their cost cutting and centralising services).  If they don't reply within a reasonable time keep pushing them.

[pj almost 50]

Correct I have.. 

 

Covid 19 has put normal response times under pressure. Even the post office is only delivering mail every other day.. Had no mail since last Friday

 

Hence I'm expecting something today.. 

 

The reason for my original post was I doubt a letter mearly saying," please friendly and nice bank pay the funeral costs first and whistle for any remaining debt balance" would achieve the desired affect. So I asked if anyone new if any rules, acts or the like that would force them to if they didn't....

[Ethel Street]

Is the £8,000 in his savings account his only asset?

 

If not then I don't think you can insist that the Funeral costs have priority for payment from the funds held by Barclays. Funeral costs are a priority debt for payment from the Estate as a whole. Not from a specific bank account. I'd think if there are assets in the Estate outside Barclays will say use those.

Edited April 7, 2020 by Ethel Street

[pj almost 50]

Cash asset yes 

[Ethel Street]

The priority of funeral expenses applies only

 

(a) if the Estate is insolvent, and

(b) from the total net assets of the Estate, not from one part of the assets.

 

As a matter of interest has the Funeral Director's bill been paid yet? Who by?

Edited April 7, 2020 by Ethel Street

[pj almost 50]

This is the minefield I suspect. Credit cards are unsecured debts and the debtor has died. So there is no one to chase for the money.. The biggest asset (the house) my mother lives in. I doubt a CCard company would persue attempting to secure a charge on the house through the courts. He has two other credit cards and one has been written off immediately (I have written confirmation of that) the other basically said if there's some money (cash in the bank) we'll have some, if there isn't please confirm that and that's the end of the matter.. 

 

 "assets" are referred to as cash in the bank when I spoke with them all advising of my father's death.. 

 

Post been and nowt from Barclays today. I've paid £2400 deposit on the funeral cost. With the  balance due in about 10 days.. 

[Ethel Street]

"Assets" does not mean only cash in the bank. "Assets" is everything the deceased owned including land and property.

 

Is there a Will and are you the Executor? If so it is not correct that there is no-one to chase for the money. The Executor is legally liable for settling the debts of the deceased from their Estate and if the Executor fails to act in accordance with their legal duties they can be pursued personally. Whether a bank would bother to that for a debt of this size in practice is another matter.

 

Why do you think a CCard co wouldn't attempt to secure a charge on the house?

 

Sounds like you will end up paying the balance of the Funeral Director's invoice yourself, as well as the Deposit, so an issue for you is how you get that repaid from the Estate?

Edited April 7, 2020 by Ethel Street

[pj almost 50]

Yes I know assets is everything owned by the deceased.. 

 

On speaking with the ccard companies so far.. They have specifically said "cash in the bank" 

 

As you've just stated its probably not top of their list to chase for it..  

 

If it was half a million quid owed they probably would.. 

 

Yes he had a will and no I'm not the Executor.. Mearly attempting to investigate what is correct and proper for a bank to do in the circumstances I've outlined above