Hysteria1983

Since my dad died suddenly my mum has been left with a lot of financial issues.

I was hoping for a little advice as things are pretty hard on my mum at the moment.

Where does she stand regarding any debts NOT in her name?

There is no will, no savings and no 'estate' other than the joint mortgage. She has been told by the bank (of which she isn't even an account holder!!) that she is accountable for all debt!
The advice from the bereavment staff at the bank was to consider a re mortgage, or to sell some of my dads belongings

Coffin Dodger

It's tricky as technically she is not liable for any debts in your Dad's name only however the first port of call for recovering these debts is the 'estate' and as there is property involved they could force you into selling it to recover their losses.

http://www.thewillexpert.co.uk/DebtAfterDeath.html

I'd try the CAB.

oldsplice

http://www.direct.gov.uk/en/MoneyTax...rs/DG_10013093

EddScott

I think it would depend who your father had debts with - credit card, loan, his share of mortgage. If he had cards is there any protection in place?

It would also depend on any loans or debts they have in joint names.

Do you know how they owned the property - joint tenants or tenants in common. Probably the latter.

I would think if there isn't money to pay the debts, the debtors may be able to take a charge on the house.

I think.

Banks can be a PITA when someone dies.

scud8

iTrader: (1)

You probably need to get some advice. As I understand it whether the house is considered part of the estate or not depends on how they owned the property. I forget the details (I went through this ten years ago when my wife died suddenly without a will) but I think joint tenancy means the house is considered outside the estate and automatically transfers to the other tenants. Some debts follow the property and automatically become debts of the other tenants - but I think this is limited to debts secured on the property (eg. a mortgage), so something like a credit card or personal loan in her husband's name only may not qualify.

As I said, you should get professional advice as this area is a minefield. For example, in some circumstances creditors have managed to persuade courts to convert unsecured loans into loans secured on a property.

The banks (and utilities) will try it on even if they know the law is not on their side. My ex-mother-in-law is having a fight with one of the water companies because her brother died intestate with very little in the way of assets and an outstanding water bill of several thousand pounds because of a leak in his rented flat. They are trying to bully her into paying it because she is his next of kin - thankfully she is far too robust to give in.

Edited to say I just found this http://www.direct.gov.uk/en/MoneyTax...rs/DG_10013093 which may be helpful (although not in a good way by the looks of it).

Hysteria1983

I'm not sure how they owned the property, all I know is that the mortgage was paid years ago. However after taking a peep, I imagine they were tennants in common.

The dept is a loan for a car (mbna) in my dads name only, my mum isn't even an account holder.
Similarly there is a sum with Halifax. Again, she isn't even an account holder.

I am selling the car for her, hopefully asap to pay that loan, but the other sum is still, from what I gather going to be passed to her.

I told her to get some advice, but she though that she wouldn't have to pay it as there was no will, no life insurance etc.

I will see if she has got anywhere today, if not I will urge her to contact the CAB, or at least a proffesional third party who knows the ins and outs.

Thanks all.

Lee247

Damn shame there was no Will. As far as I know, your Mum is not responsible for your Dads debts, assuming they weren't secured against the house. The house will or should go to her, even without a Will, but you still might get the creditors, chasing.
You need some professional advice, asap. Don't just rely on the bank, they are a waste of space as far as help goes. They only look after themselves.
All the best to you

Hysteria1983

Thanks, that's what I told her. Of course the bank is going to tell her to caugh up!

I'm just hoping she can get sorted soon.

Lee247

They make me sick, never even giving people time to grieve.
My pals hubby lost his battle with cancer, 2 weeks before Christmas. She has had the tax office hassling the life out of her with letters and demands.
Fingers crossed for a good, speedy outcome for your Mum.
Milamber is a good Solicitor, he might know someone in this line of work who could advise.

madscoob

iTrader: (3)

banks will allways try it on , my solicitor told me . are the debts secured against the house . i relied no . have you joint signed any of them . i replied no he said exellent they have no come back on you or the property tell hsbc to whistle dixy i did and havent heard anything since . my advice see a good solicitor who is well up to date on the laws regarding debts

David Lock

It would do any harm for your mum to give people like Age Concern a ring as they are good on this sort of stuff. Also some councils will put her in touch with a free debt advice service.

As said stay clear of the bank, robbing, selfish sods.

Good luck to her. dl

Hysteria1983

Do you have to be of a certain age for them to help you?

She is 57.

Trout

iTrader: (1)

With all due respect to K, this attitude is ludicrous.

Whose money do you think the bank is lending out? It is ours, they don't magically make money, I hope that banks look after our money and properly.

K, I hope that you get it sorted, it doesn't sound like the bank have a right to the money unless they have a charge over property. However you really need to get expert advice. CAB would seem like a good place to start.

Trout

iTrader: (1)

Two bits of information which really just show how much of a grey area this is.


...the Citizens' Advice Bureau explains. "Most estates will have some debts and liabilities, and it is the personal representative's duty to ensure that these are paid out of the assets belonging to the estate.

"The personal representative should therefore establish the type of debts, the amount due and an indication of whether there will be enough money in the estate to pay the debts," adds Shah. "If a debt carries interest, this is also payable from the estate by the personal representative."

Now, not all debts are treated equally. There is a definite pecking order as to who should get paid first. The order of priority is as follows:

1: Funeral, testamentary and administration expenses

2: Preferential debts like income tax, capital gains tax, VAT, National Insurance contributions and money owed as wages

3: Ordinary debts--basically, just about everything else.



Generally, anybody--including a spouse--is not personally liable for the debts of somebody who has died. The exceptions are where:

* There is joint liability for the debts. This means that each person is responsible for the whole of the debt. Examples of this situation include a joint tenancy or mortgage as already explained, a credit agreement taken out jointly, a joint bank account, community charge or council tax for heterosexual couples and joint tenants/owners.

* The creditor has the right to try to get full payment from any one or all of the people responsible. In practice, a creditor may take action against the person who has the most money or property

* She or he had acted as guarantor of the debt

* A mortgage remains on the deceased person's property even if it passes to a new owner by inheritance (although this may be paid off by an insurance policy at death)

* Taking over a tenancy from the deceased person by succession may involve taking over rent arrears if these cannot be paid by the estate.