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debt after death

freddysmum Avatar
7y, 11m agoPosted 7 years, 11 months ago
my dad has died and we have found out he owes about 14000...he was 79 lived in council house no money, on pension with a little bit of private pension just enough to make them have to pay full rent and council tax...mum is now worried silly how she is going to pay it all...it was all in just dads name...does anyone know how she stand legally ...she plans on ringing them all monday to get settlement figures but i thought his debts would go with him...she wont let me or sister deal with it ...any advice would be great
thanks alot
karen x
freddysmum Avatar
7y, 11m agoPosted 7 years, 11 months ago
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1 Like #1
OMG, so sorry to hear of your loss. as for the debt, i'm not sure,but if in you dad's name then surely your mum won't have to pay. hope it all works out for you xx
#2
my mother passed away late november so we are sorting out similar situation.

the simple answer is-if he has left any estate the council tax owed has to be paid from that but you are legally entitled to a 6 month freeze on all proceedings to sort things out. if he left no estate then the debt dies with him.

however,if any portion of the outstanding debt is your mothers council tax that has to be paid.
#3
http://www.thewillexpert.co.uk/DebtAfterDeath.html

i hope this of some help. so sorry for your loss.
#4
Sorry to hear the bads news but i think you Mum will have to pay it off

http://www.thewillexpert.co.uk/DebtAfterDeath.html
#5
sorry to hear about your dad - tell your mum to hold off making any agreements regards paying until she gets the correct information

she will be responsible for some debts occured by your dad - depends on what they were

rent - council tax - utilites are the most important to deal she should be able to make sensible arrangements - i am assuming your mum is a pensioner so help the aged / age concern would be her best bet to get advice - also help to pay off some

dont let your mum make hasty agreements with credit cards - etc

good luck
#6
Sorry for your loss.
If your dad took the insurance out at the same time with any loans, credit cards etc then it should all be covered.
I discovered all of this when my mil passed 11 years ago and everything was insured for death even the sky subscription, car and morgage. you will need to send of death cirtificates so if you can ask for ftwo copies.
#7
barky
my mother passed away late november so we are sorting out similar situation.

the simple answer is-if he has left any estate the council tax owed has to be paid from that but you are legally entitled to a 6 month freeze on all proceedings to sort things out. if he left no estate then the debt dies with him.

however,if any portion of the outstanding debt is your mothers council tax that has to be paid.

all the debt are things like bank loan ...halfords store card....comet card....store card type stuff...all utility bills are paid in full....he owns nothing only car which was bought with finance so we can send that back....live in council house have no savings...insurance policy will only cover the funeral
#8
barky
my mother passed away late november so we are sorting out similar situation.

the simple answer is-if he has left any estate the council tax owed has to be paid from that but you are legally entitled to a 6 month freeze on all proceedings to sort things out. if he left no estate then the debt dies with him.

however,if any portion of the outstanding debt is your mothers council tax that has to be paid.



I should clarify we are in scotland-in some things scottish law is different from english law-reading some of the other replies makes me wonder if our situation holds good for the whole of the uk.
#9
holly100;3942159


dont let your mum make hasty agreements with credit cards - etc

good luck


Totally agree, speak to them all individually as i reckon the rules etc will change from organisation to organisation.
#10
holly100
sorry to hear about your dad - tell your mum to hold off making any agreements regards paying until she gets the correct information

she will be responsible for some debts occured by your dad - depends on what they were

rent - council tax - utilites are the most important to deal she should be able to make sensible arrangements - i am assuming your mum is a pensioner so help the aged / age concern would be her best bet to get advice - also help to pay off some

dont let your mum make hasty agreements with credit cards - etc

good luck

we have told her that but she is so stubborn...we are her kids and she dosnt have to listen to us...(both of us in our 40s)...typical mother
#11
freddysmum;3942179
we have told her that but she is so stubborn...we are her kids and she dosnt have to listen to us...(both of us in our 40s)...typical mother


Just select the info of this post you want her to read and print it off :thumbsup:
#12
Am so sorry to hear. I don't have time to read all of this thread but having been in the same situation I can say that debts, as long as they are unsecured, die with you. Any company will do their very best to get the money if they can. Essentially my husband died with debts of about £9000 and he had no assets at all...... I repaid nothing, good luck. it is a very difficult time and i am sure you will do just fine x
#13
This looks like a good website with loads of info, it also has a free phone number to ask for advice, hope it helps:

http://www.insolvencyhelpline.co.uk/debt_special_situations/debt-after-death.php
#14
freddysmum
we have told her that but she is so stubborn...we are her kids and she dosnt have to listen to us...(both of us in our 40s)...typical mother


yes - typical of the generation - your mum and dad have put so much into system over the years - tell her its about time some of that comes back to her - now - when she needs it

there are so many trusts out there that can help - water board for one

and as i said age concern have details of other local trust funds

was your dad ever a member of a union - thats another source

as for the car - how much has been paid off - might be worth hanging on to it -

now xmas is over and its all back to normal - you ring age concern tomorrow and see what they can do :thumbsup:

edited

also if your dad was paying tax on his pensions your mum will be able to claim back the past 2 years (think its 2 years) - inland revenue
1 Like #15
Sorry to hear about your Dad, I think the way around it is to just let the red letters keep coming and depending on the company they dont always follow uop onj some cases, My brother in laws mum passed away and they did not have the money to pay off debts that was 4 years ago now and they still occasionally get a letter every 4-5 months from 1 or 2 of the companies but have just kept ignoring them . The company will threaten you with legal action and blacklist the name the accounts are in but that cannot affect your mum, I assume this is not the route you wish to take but its better than paying the debts off when clearly you need the money for other expenses, failing that have a word with the finance companies your dad may have had payment protection which will clear any outstanding debts,
1 Like #16
So sorry for your loss.

My advice is go get to a Citizens Advice Bureau on Monday when they re-open. Get some expert advice and you may even be able to get a short time with a solicitor free if neccesary. To find your local CAB visit: http://www.citizensadvice.org.uk/index/getadvice.htm#searchbox
1 Like #17
im sure most things die with him. Anything joint will probably have to be paid, but get all the free help you can. My Dad died recently and Mum let us deal with everything-he didnt have debts but even with what he had it was a lot of work to sort.
Sit down with her and explain that you want to help as it isnt a burden she should carry alone? she is putting a brave face on it. Good luck!
1 Like #18
you need to help her do two things:

first, sort out her own income so she can move forwards. Check if there is any continuing benefit payable to her or one-off payment from his private pension. Then re-run the pension credit calculation to see what she will now get an a single person (need to know savings, pension income etc before the call).

check if he had paid tax on the pension as it appears he should not have - there may be up to 2 years reclaimable. Also check they were getting the right pension credit - again you can claim "backwards" for unclaimed entitlement.

keep funeral expense records to show that the insurance payout was needed and spent.

his estate will need to be processed (including will etc) to show a value for the net estate.

second, the debts.

the rule is that unsecured debt (i.e. in his name only and without any guarantor) dies with him - she is no more responsible than anyone else.(the lenders will, however, happily take her money if she chooses to pay the debts off!).

therefore, each debt needs to be examined to se if she also signed up for it (second signature on store card application for instance or overdraft on joint account).

these joint debts will almost certainly pass to her. The others are not her problem and are "hard luck" on the lenders (you will need to show the value of the estate as some lenders may have a claim here is the estate actually has a net positive value).

it is necessary to prove death to all these lenders and that needs a "certified" copy of the death certificate. These cost £7 each from the Registar or you can go to your bank and they can stamp photocopies (for free or nearly free) which will also suffice. (ordinary photocopies won't work unless endorsed by a "professional"). Calling each lender is the best method - let them know of the death and follow their process to ensure inerest and chasing letters etc stop.

please don't let her assume this is all her problem and good luck helping her sort it out...

there will be free help for all this from an agency - I'm not sure who in Scotland - start by calling Help the Aged and they will be able to refer you.
1 Like #19
Cheapestskate
you need to help her do two things:

first, sort out her own income so she can move forwards. Check if there is any continuing benefit payable to her or one-off payment from his private pension. Then re-run the pension credit calculation to see what she will now get an a single person (need to know savings, pension income etc before the call).

check if he had paid tax on the pension as it appears he should not have - there may be up to 2 years reclaimable. Also check they were getting the right pension credit - again you can claim "backwards" for unclaimed entitlement.

keep funeral expense records to show that the insurance payout was needed and spent.

his estate will need to be processed (including will etc) to show a value for the net estate.

second, the debts.

the rule is that unsecured debt (i.e. in his name only and without any guarantor) dies with him - she is no more responsible than anyone else.(the lenders will, however, happily take her money if she chooses to pay the debts off!).

therefore, each debt needs to be examined to se if she also signed up for it (second signature on store card application for instance or overdraft on joint account).

these joint debts will almost certainly pass to her. The others are not her problem and are "hard luck" on the lenders (you will need to show the value of the estate as some lenders may have a claim here is the estate actually has a net positive value).

it is necessary to prove death to all these lenders and that needs a "certified" copy of the death certificate. These cost £7 each from the Registar or you can go to your bank and they can stamp photocopies (for free or nearly free) which will also suffice. (ordinary photocopies won't work unless endorsed by a "professional"). Calling each lender is the best method - let them know of the death and follow their process to ensure inerest and chasing letters etc stop.

please don't let her assume this is all her problem and good luck helping her sort it out...

there will be free help for all this from an agency - I'm not sure who in Scotland - start by calling Help the Aged and they will be able to refer you.


Suggest you read this thoroughly, very good advice, took the words out of my mouth pretty much. Would also suggest that when you write to each creditor ( and you must write to them all ) that you make it clear that there is no estate. If you get unhelpful responses then go to see the CAB, Law Centre, Money advice ( whatever you have available locally )who will all be able to give
excellent advice for free. Good luck :thumbsup:
1 Like #20
MrGrumpyman
Suggest you read this thoroughly, very good advice, took the words out of my mouth pretty much. Would also suggest that when you write to each creditor ( and you must write to them all ) that you make it clear that there is no estate. If you get unhelpful responses then go to see the CAB, Law Centre, Money advice ( whatever you have available locally )who will all be able to give
excellent advice for free. Good luck :thumbsup:
some helpful advice on here, but i suggest you go and see your citizens advice or your Scottish equivalent before taking anything on into your own hands. They will already know where to contact and how to approach the banks, and maybe help you do the letters etc.
1 Like #21
So sorry about your loss. Your mum should get herself straight to the Citizen's Advice Scotland. They will give free qualified advice. Unless she has a lot of assets, the creditors will probably back off in exchange for a small percentage of the outstanding debts.

I lost my dad the week before Christmas so feel your pain

http://www.cas.org.uk/

Best of luck
1 Like #22
Don't know much about this but I'd just like to send my condolenses at this difficult time X
1 Like #23
Sorry to hear about your loss...Some good advice mentioned already. CAB, and put on hold for 6 months if there is money to pay. This is the last thing you and your family needs to be worrying about at this time. As mentioned already, some companies might send letters and phone, basically tell them they are not getting it, and if they threaten court, and a decree, tell them that's fine, as it will be in your father's name. Nothing will come of it.
God Bless.
#24
thank you everyone for your advice and help....im of to sort out with her today if she will let me...if not might have to tie her to chair while i sort it all...
big hugs to you all....
happy new year
karen x
1 Like #25
Very sorry for your loss.

As to debt position - as already mentioned ensure that your Mum (or yourselves) go and see the Citiizens Advice as soon as possible for impartial practical and friendly advice.

it is impossible to comment on your father's debts in detail but your Mum needs to make an appointment with the local council/ regional SDL/other owner of house in relation to the rent etc. They will talk through the tenancy basis ie tenant in common/ joint tenant etc.

Council Tax - this will be levied against the property but as previous threads have mentioned here there are a number of discounts that your Mum is probably entitled too and there are also a number of sensitive repayment plans for any o/s debts - do not be afraid to approach the Council.

Your father's private debts - these probably can be written off so long as they were in his name only and were not debts with your mother also named on them. Ensure that you or your Mother do not admit ANY responsibility or liability for debts here even if the debtors claim that they were in both your Mother and Father's names. Once again have a chat with the Citizens Advice Bureau and they will help you.

Good luck

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