Husband deceased with debts - Banking help?

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Sirlaughalot
Sirlaughalot Posts: 273 Forumite
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edited 18 February 2018 at 10:47AM in Deaths, funerals & probate
My Brother died in January this year and left debts in the way of a personal loan and credit card. His wife is the executor of his estate and I`m trying to help her with the funeral and financial side of things. I`m trying to help others on this forum so i will keep the question concise and create more individual threads on other aspects of the process as we find them. It may help others when searching for specific problems

She went to the bank yesterday and their joint current account and savings account have been transferred to her name.
My brother's debts were in his sole name and with the same bank as their joint accounts. My question is do the joint bank/savings accounts form any part of my brother's estate.


Thanks in advance
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  • Yorkshireman99
    Yorkshireman99 Posts: 5,470 Forumite
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    Sirlaughalot wrote: »
    My Brother died in January this year and left debts in the way of a personal loan and credit card. His wife is the executor of his estate and I`m trying to help her with the funeral and financial side of things. I`m trying to help others on this forum so i will keep the question concise and create more individual threads on other aspects of the process as we find them. It may help others when searching for specific problems

    She went to the bank yesterday and their joint current account and savings account have been transferred to her name.
    My brother's debts were in his sole name and with the same bank as their joint accounts. My question is do the joint bank/savings accounts form any part of my brother's estate.


    Thanks in advance
    Answer is in your other thread. Better to keep it to just one thread.
  • Sirlaughalot
    Sirlaughalot Posts: 273 Forumite
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    Ok and thanks for your quick response
  • Sirlaughalot
    Sirlaughalot Posts: 273 Forumite
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    My brother has various life insurance policies of which his wife will be the benefactor.

    Do the proceeds from these policies go straight to his wife or do they form part of his estate and therefore go to pay off the debt?

    Thanks in advance
  • Yorkshireman99
    Yorkshireman99 Posts: 5,470 Forumite
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    Sirlaughalot wrote: »
    My brother has various life insurance policies of which his wife will be the benefactor.

    Do the proceeds from these policies go straight to his wife or do they form part of his estate and therefore go to pay off the debt?

    Thanks in advance
    It depends on the exact wording of the policy but normally they do not form part of the estate. Is there a will? In any case the executor needs to be very careful if the estate is insolvent.
  • Keep_pedalling
    Keep_pedalling Posts: 16,671 Forumite
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    Yorkshireman99 wrote: »
    It depends on the exact wording of the policy but normally they do not form part of the estate. Is there a will? In any case the executor needs to be very careful if the estate is insolvent.

    The OPs other thread suggests the estate is solvent, although it looks like a house sale would be required to free up the cash to pay of the depts, so perhaps it may be a better option to use the insurance to pay it off to avoid the house sale.
  • Sirlaughalot
    Sirlaughalot Posts: 273 Forumite
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    Yorkshireman99 wrote: »
    It depends on the exact wording of the policy but normally they do not form part of the estate. Is there a will? In any case the executor needs to be very careful if the estate is insolvent.
    Yes there is a will, the only benefactor is his wife who is also the executor. As there is will be no transfer of the house i assume no tax so no probate is required?
  • Sirlaughalot
    Sirlaughalot Posts: 273 Forumite
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    Keep_pedalling wrote: »
    The OPs other thread suggests the estate is solvent, although it looks like a house sale would be required to free up the cash to pay of the depts, so perhaps it may be a better option to use the insurance to pay it off to avoid the house sale.
    I have sought some provisional legal advise(CAB)/Macmillan about the house that is tied up in a 'family protection assets trust' and it looks like the house can`t be included in the estate and therefore no admin order can be placed on it as it belongs to trustees, not the deceased
  • getmore4less
    getmore4less Posts: 46,882 Forumite
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    when was this trust created?
  • Keep_pedalling
    Keep_pedalling Posts: 16,671 Forumite
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    I am confused, in your other thread you said the house was owned as tenants in common with his share being left to the children and his widow maintaining a life interest. If that is the case then the trust would not exist before his death so his half of the house would form part of his estate.

    You really need proper paid for legal advise.
  • Sirlaughalot
    Sirlaughalot Posts: 273 Forumite
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    Keep_pedalling wrote: »
    I am confused, in your other thread you said the house was owned as tenants in common with his share being left to the children and his widow maintaining a life interest. If that is the case then the trust would not exist before his death so his half of the house would form part of his estate.

    You really need proper paid for legal advise.
    I said it was held in some form of trust not sure what.

    It may ave been you who suggested tenants in common
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