Main site > MoneySavingExpert.com Forums > Who & Where are You? > Over 50s Money Saving > What happens to bills when someone dies? (Page 1)

IMPORTANT! This is MoneySavingExpert's open forum - anyone can post

Please exercise caution & report any spam, illegal, offensive, racist, libellous post to forumteam@moneysavingexpert.com

  • Be nice to all MoneySavers
  • All the best tips go in the MoneySavingExpert weekly email

    Plus all the new guides, deals & loopholes

  • No spam/referral links
or Login with Facebook
What happens to bills when someone dies?
Closed Thread
Views: 7,349
Thread Tools Search this Thread Display Modes
# 1
slopemaster
Old 17-08-2010, 10:49 PM
Serious MoneySaving Fan
 
Join Date: Sep 2008
Posts: 1,060
Default What happens to bills when someone dies?

I am trying to Ďput my affairs in orderí. I have no reason to think Iím going to die (except that we all are!) but am thinking of leaving as few problems as possible were I to fall under a bus tomorrow. I have recently made a will, but now grappling with all the other logistics. I have read the sticky about what to do if someone dies Ė all of it! And followed up some useful websites. But still got some questions.
In particular, what happens about bills etc?
I live alone and have direct debits for mortgage, utilities, and finance on a sofa etc.
If I died, my account would be frozen and these payments would stop going out.
There will, eventually, be enough money to pay off the mortgage etc. But it would take several months for the person who will inherit the house (and be an executor) to get the money, and in the meantime they wouldnít be able to afford all that, mortgage, bills, council tax etc on a house they donít yet own, donít live in, and canít sell until they own it!! Will the mortgage holder have to be approached and asked to suspend payments? What if they donít agree? What if finance on sofa for example isnít paid Ė will they be able to claim huge penalties from the estate? Will the house insurance be invalid? Does the executor have to pay out to insure it?
So it all seems a bit of a poisoned chalice.
Wish Iíd asked the solicitor some of these questions, but itís only now I think of it.
any pointers gratefully received
slopemaster is online now
Report Post
# 2
Mrs Money
Old 24-08-2010, 12:45 PM
Serious MoneySaving Fan
 
Join Date: Jun 2007
Posts: 1,176
Default

Not sure about the mortgage, but we've just experienced this with a relative. We visited the bank with the death certificate and from then on all activity (out) was stopped. We could still pay money in e.g. when we disposed of assets like a car .
We followed this up with a phone call to all the utilities etc (and any company receiving payment from a direct debit). This supended or cancelled all services like Sky, Broadband etc. Most companies have a breavement team - I found everyone very helpful.
Council tax is also suspended from date of death. Other bills like management services for a flat, continue to accrue and must be settled on sale of the property (well, that's what we've been told).
On sale of the property the gas and electricity meters will be read and a final bill sent.
Hope that helps a bit!
Mrs Money is offline
Report Post
# 3
chesky369
Old 24-08-2010, 10:35 PM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Mar 2006
Location: West London
Posts: 2,537
Default

Is your mortgage repayment covered by insurance on death?
chesky369 is offline
Report Post
# 4
Farway
Old 25-08-2010, 5:37 PM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Sep 2006
Posts: 4,465
Default

Quote:
Originally Posted by chesky369 View Post
Is your mortgage repayment covered by insurance on death?
It does depend on mortgage, but IME most mortgage companies insist upon a Life insurance policy to pay off the outstanding mortgage on death, only to ensure they get their money back, no altruism there

So, basically yes, unless the person has cancelled the policy or not kept up payments
Farway is offline
Report Post
# 5
noh
Old 25-08-2010, 8:46 PM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: May 2007
Location: Essex
Posts: 4,779
Default

Quote:
Originally Posted by Farway View Post
It does depend on mortgage, but IME most mortgage companies insist upon a Life insurance policy to pay off the outstanding mortgage on death, only to ensure they get their money back, no altruism there

So, basically yes, unless the person has cancelled the policy or not kept up payments
Not in my experience.
I have never had life insurance and it has never been mentioned as a condition of any mortgage I have taken out. If it had I would have refused.
noh is offline
Report Post
# 6
chesky369
Old 26-08-2010, 1:54 PM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Mar 2006
Location: West London
Posts: 2,537
Default

My experience is the same as Farway's which was why I asked the OP - I can't imagine any mortgage company allowing you not to be covered against repayment in the case of death.
chesky369 is offline
Report Post
# 7
noh
Old 26-08-2010, 3:50 PM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: May 2007
Location: Essex
Posts: 4,779
Default

Quote:
Originally Posted by chesky369 View Post
My experience is the same as Farway's which was why I asked the OP - I can't imagine any mortgage company allowing you not to be covered against repayment in the case of death.

I'm single so do not need life insurance.
All my mortgages have been repayment mortgages the current one is interest only.
My first mortgage I took in 1985 from Abbey National on the application form it did have a section that made it look as if life insurance was required I deleted it, was given the mortgage and nothing was said about life insurance.
The subsequent mortgages I have taken out with Abbey National, Halifax and now First Direct have no mention of Life Insurance whatsoever.
Back in the 70's lenders may have insisted on Life Insurance as a condition but it generally hasn't been the case for the last 25 years.

Why would they need it? They have the security of the house.

from
http://www.moneysavingexpert.com/mor...life-insurance

"Is Mortgage Life Assurance worth having?
Most lenders strongly recommend you get a policy when you take out a mortgage and it isn’t a bad idea. If done correctly, it shouldn't be prohibitively expensive. Yet lenders will try and flog you their own ridiculously expensive policies, often without regard to circumstance. For example, if you don’t have anyone to leave your property to and money is tight, then there’s no need."

Last edited by noh; 26-08-2010 at 3:58 PM.
noh is offline
Report Post
# 8
chesky369
Old 26-08-2010, 7:36 PM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Mar 2006
Location: West London
Posts: 2,537
Default

......if you don’t have anyone to leave your property to ......

That's probably the key. You're right about the mortgage company having the property in the event of you popping your clogs whilst still in hock to them. But the position would be different if you were a middle aged woman who hadn't worked since having her children whose husband suddenly died of a heart attack.

Agree also aboutavoiding the lender's insurance - I always arranged my own which was far cheaper.
chesky369 is offline
Report Post
# 9
Sally A
Old 26-08-2010, 9:12 PM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Jan 2010
Location: Somerset
Posts: 2,011
Default

When Dad passed away, he'd just come to the end of his buy your kitchen now and pay in 3 years time, interest free. As executor, first I knew of it was when a bill came though and due to non payment they'd hiked an interest rate on it. Rang B&Q, and I think it was via GE Capital, they were very good, removed interest charges, and let me pay it off without penalties once I had access to the bank accounts. Halifax bank were also very good and released funds before the final papers had come through.

Must admit, I found all companies were very sympathetic and gave me breathing space; that might have been because they knew funds were availble, so would get payment sooner or later, but I never had any heavy handedness from any company.
Sally A is offline
Report Post
# 10
krumkev
Old 28-08-2010, 11:39 AM
MoneySaving Newbie
 
Join Date: Aug 2010
Posts: 1
Default joint account when a person dies

Does anyone have experience of what happens with a joint account when one accountholder dies?
There are ambiguous references in the bank's conditions that indicate that the account will be transferred into the sole name of the survivor, but it seems to me that there might be other implications regarding the deceased's estate.
Thanks for any help.
krumkev is offline
Report Post
# 11
Savvy_Sue
Old 28-08-2010, 6:05 PM
Deliciously Dedicated Diehard MoneySaving Devotee
 
Join Date: Dec 2003
Posts: 34,120
Default

The joint account does indeed pass into the sole name of the survivor, and I've been told that even if the deceased wanted something different to happen, it all now belongs to the survivor.

In our case it happened completely seamlessly and Mum's had no problems with standing orders and DDs continuing to be paid.
I'm a Board Guide on the Cutting Tax; Charities; Small Biz & Charity Organisers; and Silver Savers boards, which means I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. However, do remember, Board Guides don't read every post. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com. It is not part of my role to deal with reportable posts.

Any views are mine and are not the official line of moneysavingexpert.com

New to the Forum? Why not watch the Guide?

Real Life is taking a lot more time than usual
Savvy_Sue is offline
Report Post
# 12
slopemaster
Old 30-08-2010, 1:36 AM
Serious MoneySaving Fan
 
Join Date: Sep 2008
Posts: 1,060
Default Sorry i posted and didn't come back

I don't have insurance, no.
I live alone.
My idea is that the house would be sold, which would realise enough to pay off the mortgage plus something to leave to my - what's the word in English, my heritiers.
But as it would take time to get probate and then to sell the house, I just wondered what would happen if the heritiers didn't have the money to pay the mortgage in the meantime, whether there would be penalties or whether the lender would agree to suspend payments.
I had to ring them about something else, so I asked, and they said it should continue to be paid, and if not, they would charge interest on the interest.
Still not getting insurance though.
Seems its a grey area as to whether the bank would release money to the executors to pay it.
Oh well, I'll not be here to worry about it.
slopemaster is online now
Report Post
# 13
Loughton Monkey
Old 01-09-2010, 12:54 AM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Jul 2010
Location: Loughton, Essex
Posts: 8,242
Default

Your original post asks a lot of questions!

I think you will find that the answer to all of them depends upon the executor(s). On the assumption that you have chosen someone who has both the 'drive' and the 'knowledge' to proceed, then there should be no problems.

On this assumption, I would strongly recommend some sort of document to be kept with the will (or somewhere you can get at it frequently). Write down (a) where all your money/assets are to be found, and (b) what liabilities, payments etc. need dealing with.

I have my own such details on my computer - but printed out and in the safe with my will. But I update it every few months or so because things change. For example, I have lots of Internet Bank Accounts. Not many people realise that because there is generally little or no paper documentation, there is a strong likelihood that these accounts might never be 'found' unless someone can/will hack into your computer to find details. Some of 'my' accounts are actually in my wife's name, for example because of splitting down £50K+ to less than £50K so that the whole amount is covered by government indemnity. She vaguely knows of them, but I do the actual transactions over the Internet on her behalf.

By leaving such papers, she would relatively easily be able to access extra funds (if necessary) straight away, because they are legally her funds.

In fact I use an accounts package (Quicken) and so my executors would in fact be able to glance at that and get an up-to-date list of (a) the 50+ (!Yes!) financial institutions I deal with, and (b) a rough idea of the value of each. That knowledge would be good enough for anyone with grant of probate to wrestle the cash from the banks' grubby little hands fairly quickly.

Apart from that, just try to stay alive as long as you can!
Loughton Monkey is offline
Report Post
The Following User Says Thank You to Loughton Monkey For This Useful Post: Show me >>
# 14
slopemaster
Old 01-09-2010, 1:26 AM
Serious MoneySaving Fan
 
Join Date: Sep 2008
Posts: 1,060
Default

Quote:
Originally Posted by Loughton Monkey View Post
I would strongly recommend some sort of document to be kept with the will (or somewhere you can get at it frequently). Write down (a) where all your money/assets are to be found, and (b) what liabilities, payments etc. need dealing with.
I have my own such details on my computer - but printed out and in the safe with my will.

Yes, I'm in the process of doing that.
Glad I've not got 50+ though!!!
Still, mortgage, several savings a/cs, 3 current a/cs, 3 or 4 credit cards, usual utilites and insurance, a pension, trade union...must be a couple of dozen I suppose.
Good point about the internet accounts.
One problem I've run into is not wanting to write down too many details (passwords etc)
You mention yours being in a safe.
Only thing I thought of was putting everything in an envelope sealed with old-fashioned sealing wax!
So at least I would know if it had ever been opened! As it needs to be accessible.


Quote:
Originally Posted by Loughton Monkey View Post
Apart from that, just try to stay alive as long as you can!
Yes, I intend to!

Last edited by slopemaster; 01-09-2010 at 1:55 PM.
slopemaster is online now
Report Post
# 15
getmore4less
Old 01-09-2010, 9:26 AM
Deliciously Dedicated Diehard MoneySaving Devotee
 
Join Date: May 2007
Posts: 19,765
Default

Quote:
Originally Posted by chesky369 View Post
My experience is the same as Farway's which was why I asked the OP - I can't imagine any mortgage company allowing you not to be covered against repayment in the case of death.
Never been a requirement on any mortgage I have taken out, we had to pass on a Barlcays mortgage once but they had dropped the requirement a few years later when we wanted to switch.
getmore4less is online now
Report Post
# 16
getmore4less
Old 01-09-2010, 9:41 AM
Deliciously Dedicated Diehard MoneySaving Devotee
 
Join Date: May 2007
Posts: 19,765
Default

Remember to get probate any IHT due needs to be addressed so if the total assets are over £325k have a think how this will get paid from you assets.

I think a good exercise is to try to do your own estate now.
Get a PA1 and IHT205 and fill them in, you might need IHT400

That way you can leave a document(spreadsheet would be nice) with the details of assets that matches the forms that need to be used will make life a lot easier for the executor.

This with regular updates along side detailed accounts in something like quicken will make everything a lot easier.

As has been said make sure you have any on-line only dealing documented on paper that's financial and utility these are hard to track when the only record is a payment on an account.

Remember that people(executors) should not really be using your on-line details to access your accounts so no need for any login details just the contact details of the insitutions, many will deal initialy by phone and tell you if they need writen notification and a death cert or probate/lettersof admin
getmore4less is online now
Report Post
The Following 2 Users Say Thank You to getmore4less For This Useful Post: Show me >>
# 17
slopemaster
Old 01-09-2010, 1:59 PM
Serious MoneySaving Fan
 
Join Date: Sep 2008
Posts: 1,060
Default

Quote:
Originally Posted by getmore4less View Post
Remember to get probate any IHT due needs to be addressed so if the total assets are over £325k have a think how this will get paid from you assets.
Oh, thanks for the thought but there's NO chance of that!

Quote:
Originally Posted by getmore4less View Post
I think a good exercise is to try to do your own estate now.
Get a PA1 and IHT205 and fill them in...
That way you can leave a document ...with the details of assets that matches the forms that need to be used will make life a lot easier for the executor.
Yes, it would be a lot easier for me to do it than for anyone else to try to work out, that's for sure
slopemaster is online now
Report Post
Closed Thread

Bookmarks
 
 




Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

 Forum Jump  

Contact Us - MoneySavingExpert.com - Archive - Privacy Statement - Top

Powered by vBulletin® Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.

All times are GMT. The time now is 9:34 PM.

 Forum Jump  

Free MoneySaving Email

Top deals: Week of 17 December 2014

Get all this & more in MoneySavingExpert's weekly email full of guides, vouchers and Deals

GET THIS FREE WEEKLY EMAIL Full of deals, guides & it's spam free

Latest News & Blogs

Martin's Twitter Feed

profile

Cheap Travel Money

Find the best online rate for holiday cash with MSE's TravelMoneyMax.

Find the best online rate for your holiday cash with MoneySavingExpert's TravelMoneyMax.

MSE's Twitter Feed

profile