[Help] Financial advice about bereavement.

lawros left foot · Sep 2, 2021

I would like some advice from the collective wisdom of NSC.

Mrs LLFs dearest friend has recently passed and as she only has an elderly sister as sole surviving relative, it has become our task to sort out the ladies finances.

Sorting through her papers, it has become apparent that she has a large amount of debt to credit card, loan management companies, and debt collectors. I have no idea what happens now, we are going to make an appointment with citizens advice.
She did own her own leasehold flat, but unfortunately, the lease isn’t a long one. Is her sister eligible for her debt, do the loan companies have first shout on any assets?
I would be grateful for any advice for how to go about this.

Please, no jokes, it’s already an upsetting time.

Joey Jo Jo Jr. Shabadoo · Sep 2, 2021

I’m no expert but they may try and get the money out of the estate. The link below may help more with advice etc.

https://www.stepchange.org/debt-info/bereavement-and-debt.aspx

Thunder Bolt · Sep 2, 2021

Did she leave a will, and are you the executors?

Cheshire Cat · Sep 2, 2021

I think you need to talk to a solicitor as well as CAB.

The debts will probably netted off the value of the estate during probate, but I don't think the creditors can come after the relatives if the estate can't afford to pay them unless the relatives are also named as joint debtors on the credit arrangements.

The Clamp · Sep 2, 2021

Firstly, sorry for your loss. You have my sympathies.
The debts will be payable from her estate and this will be a part of the probate process. You can try and hope they just forget about it but then any inheritance anyone receives would be payable to the companies if they do catch up with you.

Relatives do not become liable for the debt unless they are guarantor or have signed a joint loan agreement.

But keep your appointment with CA and talk to their family solicitor if the family can cover the solicitors fees.
Are you executors or have they appointed a solicitor? If they have appointed the latter, let them handle it all. They'll be charging enough, don't do their work for them.

Uncle Spielberg · Sep 2, 2021

A sibling would not be liable for her debt unless jointly done but the creditors would be in line for the sale of any assets I would think. Best call an IFA or Solicitor

happypig · Sep 2, 2021

Sorry for your loss.

As I understand it, if it's a "secured" debt, like a mortgage, then they can get money from the estate; if it's unsecured, like a credit card, then they have less rights and it may be that the "debt dies with the debtor".
I'd suggest seeing a solicitor for advice before paying anyone, even if you choose to do the probate stuff yourself.

sparkie · Sep 2, 2021

The debts come out of the estate. If they are larger than the estate no one else is liable for them.

lawros left foot · Sep 2, 2021

Thank you all for your advice.

Unfortunately, there appears to be no will, but the estate should cover all her debts, or the ones we have found so far.
We really didn’t have a clue that she had so much debt.

One other question, we think there’s about 5 grand in her bank account, can we use some of this money to pay for her funeral, as her sister can’t afford it, and to be honest, neither can we after am18 months of Covid restrictions on my business.

The Clamp · Sep 2, 2021

To add; if the estate cannot cover the debts, tough luck for the creditors, it gets written off.

Thunder Bolt · Sep 2, 2021

lawros left foot said:
Thank you all for your advice.

Unfortunately, there appears to be no will, but the estate should cover all her debts, or the ones we have found so far.
We really didn’t have a clue that she had so much debt.

One other question, we think there’s about 5 grand in her bank account, can we use some of this money to pay for her funeral, as her sister can’t afford it, and to be honest, neither can we after am18 months of Covid restrictions on my business.

She’s got to have a funeral and I doubt the council will pay if she has money in the bank.

PILTDOWN MAN · Sep 2, 2021

lawros left foot said:
Thank you all for your advice.

Unfortunately, there appears to be no will, but the estate should cover all her debts, or the ones we have found so far.
We really didn’t have a clue that she had so much debt.

One other question, we think there’s about 5 grand in her bank account, can we use some of this money to pay for her funeral, as her sister can’t afford it, and to be honest, neither can we after am18 months of Covid restrictions on my business.

https://www.stepchange.org/debt-info/bereavement-and-debt.aspx

This covers it, and yes her funeral costs are covered before any debt.

Cheshire Cat · Sep 2, 2021

The undertakers would be able to advise about funeral costs and how to pay them. I found them very helpful when my Dad died (all be it eyewateringly expensive).

Cheshire Cat · Sep 2, 2021

The Clamp said:
To add; if the estate cannot cover the debts, tough luck for the creditors, it gets written off.

I did have a massive row with a creditor when the mother-in-law died owing for a new mattress she had ordered the week before she died (which they tried to deliver the day before the funeral which didn't help). In the end I used a free 30 minute consultation advertised by a local solicitor, who effectively told the shop that as the mattress had not been accepted by us and had been returned unused, there was no debt outstanding so "bugger off"....

The Clamp · Sep 2, 2021

Cheshire Cat said:
I did have a massive row with a creditor when the mother-in-law died owing for a new mattress she had ordered the week before she died (which they tried to deliver the day before the funeral which didn't help). In the end I used a free 30 minute consultation advertised by a local solicitor, who effectively told the shop that as the mattress had not been accepted by us and had been returned unused, there was no debt outstanding so "bugger off"....

That’s sounds about right. I had a right old dance with BT trying to get my Dad’s contract terminated when he died a few years ago. He was living with my Nan for the last year of his life. I was patient and understanding with them until they tried to hassle my 93 year old Nan to pay an “early leaving fee”.
Big corporate don’t much care about people when they are alive, let alone after they’re dead. As you know, you have to be belligerent back to get their attention.

We had a one-stop charity do all that for us when my Brother died a few months after my Dad. They were fantastic. They took care of all of that admin for us.

drew · Sep 2, 2021

lawros left foot said:
Thank you all for your advice.

Unfortunately, there appears to be no will, but the estate should cover all her debts, or the ones we have found so far.
We really didn’t have a clue that she had so much debt.

One other question, we think there’s about 5 grand in her bank account, can we use some of this money to pay for her funeral, as her sister can’t afford it, and to be honest, neither can we after am18 months of Covid restrictions on my business.

Are you the named executors? That might have a bearing on what access you have to funds to pay for things.

KZNSeagull · Sep 2, 2021

lawros left foot said:
Thank you all for your advice.

Unfortunately, there appears to be no will, but the estate should cover all her debts, or the ones we have found so far.
We really didn’t have a clue that she had so much debt.

One other question, we think there’s about 5 grand in her bank account, can we use some of this money to pay for her funeral, as her sister can’t afford it, and to be honest, neither can we after am18 months of Covid restrictions on my business.

Have a look on here: https://www.stepchange.org/debt-info/bereavement-and-debt.aspx

According to that page funerals and admin costs are paid first from an estate. Unsecured creditors are paid if there is anything left although I know from experience that many unsecured creditors will write the debt off pretty much as soon as they know someone has died (they need copies of the death certificate) and they have lodged a claim with the executor/solicitor as they will not want the admin overhead of keeping the account active. As long as the debt was in her name only, they cannot chase anyone else other than the estate for payment, so don't take any crap from anyone.

Good luck! Use a solicitor if you have to and they will take their fee from the estate. If that results in the unsecured creditors getting nothing then oh dear, what a shame.

Norman Potting · Sep 2, 2021

Thunder Bolt said:
She’s got to have a funeral and I doubt the council will pay if she has money in the bank.

Depending on the financial circumstances the Council may cover the burial costs - Wealden recently had a posting on their social media on the matter.

Hope all goes as smoothly as possible for you - echo "speak to CAB" as well as Solicitors.

Nitram · Sep 2, 2021

The Gov sites have excellent advice

https://www.gov.uk/after-a-death/arrange-the-funeral

https://www.gov.uk/applying-for-probate/apply-for-probate

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[Help] Financial advice about bereavement.

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