Dealing with debts as an executor of a will

[indebtnow]

Hi all,

I have previously been helped by the wonderful people on these forums, which helped me out of debt and to a much stronger position that I am in today, for which I am eternally grateful. My debts were all cleared, I now have no debt (apart from a mortgage) and an excellent credit file. I did also show my gratitude with a donation, which even if it helps just one other person out of spiralling debt, it would have been worth it.

Sadly, my elderly parents did also run up some debts a few years ago, some through loans and some through credit cards.

A few years ago, my father had a medical episode which has left him paralysed on one side of his body and now is confined to a wheelchair, and is pretty much non verbal (he can only manage a handful of words, and gets confused easily). I'm seriously not sure how far any County Court Action would get against him due to his current state, if any of the DCAs were to proceed down that route. Luckily nonw have tried, but can only think that any action would be discontinued by a judge.

Before his medical episode he did set up a payment plan with some of the DCAs that were chasing him, which have continused being paid to this day from his bank account. They are literally minimum amounts, but obviously these actions have kept those debts current.

However, some of the other debts have since become statutory barred due to the time elapsed since the last COA.

My mum does have Power of Attorney over his financial affairs so can act on his behalf, with me as backup if god forbid anything happens to my mum.

Their wills are set up for everything to go to the other should either of them pass away, and then to their children upon the passing of both of them, with myself being named as the executor on both of their wills.

I have recently been reading up on the role of an executor, and part of the duties is to pay any outstanding liabilities before distributing the remainder of the estate. I have seen, in several instances, of a recommendation of posting about any death in the local newspaper column and the gazette to limit any future liabilities as executor in case of any debts that are unknown to myself.

But this does lead me onto the debts I do know about. Am I right in thinking that the current debts that my dad has been making token payments on would have to be repaid in full to the DCAs upon his death? If that is the case, is it worth negotiating a full and final settlement, with a discount, on his behalf now?

And with the debts that are statutory barred, am I correct in presuming that they would not need to be paid upon my dad's death as they wouldn't be legally enforcable in court?

Thanks in advance for all of your help!

[AndyOrch]

8 minutes ago, indebtnow said:

But this does lead me onto the debts I do know about. Am I right in thinking that the current debts that my dad has been making token payments on would have to be repaid in full to the DCAs upon his death? Only if there is anything left after everything else has been paid and I mean everything else including the milk man then look at the debts If that is the case, is it worth negotiating a full and final settlement, with a discount, on his behalf now? NO

And with the debts that are statutory barred, am I correct in presuming that they would not need to be paid upon my dad's death as they wouldn't be legally enforceable in court?

Correct

 

Andy

[indebtnow]

Thanks Andy,

There will be money left as they own their house.

That's why I was thinking it may be cheaper to pay off the debts now, with a discount, rather than in full when the time comes.

[AndyOrch]

Once the creditors have been informed of death its for them to try to recoup the debt......you would be surprised how many simply write it off and close the account. 

Offering to negotiate cheaper settlement now only puts them on notice that there is money in them there hills but thats your decision.

[AndyOrch]

Are the debts still with the original creditors ? No DCAs ?

[indebtnow]

Great advice as always, thanks Andy!

I think one is still with the original creditor, but the rest are with DCAs.

[AndyOrch]

4 minutes ago, indebtnow said:

think one is still with the original creditor, but the rest are with DCAs.

That one to possibly be considered then.

[indebtnow]

That's great, thank you for all of your help Andy!

[AndyOrch]

If you have time on your hands you could send then all a CCA request and see what paperwork they sit on......on the ones that fail to comply consider stopping their token payments now.

 

 

.

[Mycathasfleas]

I'll just mention, in passing, that the DWP has been known to mislead next of kin into believing they are responsible, in the absence of other assets, for repaying overpayments. 

 

They tried it with me when my father died. Fortunately I had listened to Moneybox on Radio 4 a few weeks previously.