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Nerdy Note: Do debts die with you?

in MoneySaving polls
35 replies 25.5K views


  • when my parents died, their small insurance policies paid for funeral. i took over the flat, and bills..

    any spare cash from their 'estate' was spread amongst the grandkids.
    Long time away from MSE, been dealing real life stuff..
    Sometimes seen lurking on the compers forum :-)
  • Hi there was looking at this segment and couldn't find anything.
    What i want to find out is this, 3 weeks ago my father died. When i asked him what financial arrangements had been sorted, he told me he had a pension in trust, which he could draw at 65. If he died b4 it would be left to his beneficiaries, if he died after 65 when he was drawing it, it would pass to his wife, our stepmother. Recently he changed his list of beneficiaries as it was all to go to my brother, and he split it 25% to me, brother, stepbrother and stepmother. They both were under the impression it was 70% to stepmother and 10% to the rest of us, which was never the case at all, so where they got that from i've no idea!! Now my father had no debts in his name apart from one credit card from years ago as he was unable to obtain any credit, so when they mentioned that he wanted his debts paying off i was a bit shocked (bear in mind NOTHING has been written down as to his wishes, it's their word for it). They then announced that these debts were in STEPMOTHERS name (no wonder it was one of his wishes!!) From what i can understand me and my brother are not legally responsible to pay of these debts that are NOT in fathers name, from any monies that come from his trust pension. Am i right??:confused:
  • DSmiffyDSmiffy Forumite
    791 Posts
    Part of the Furniture 500 Posts Combo Breaker
    morrisp6 wrote: »

    What i did find though is this:
    If the debt is wholly in the person's name with no other named individuals on it, then it does die with them, credit cards, and personal loans / finance that my father took out in HIS NAME ONLY, were wiped out with the production of a death certifacte.
    And there was no extra insurance on these credit cards either / loans.

    Hope that helps someone.


    This is very interesting, my father passed away this week and had a credit card in his name only with debt on it of around 3K. Does this mean that it doesn't pass to my mother? When I rang the credit card company (lloyds tsb) they more or less said that it was due and payable but I had to produce a death certificate at the branch and the branch would then ring head office to find out what is to be done. Could just do with something concrete to quote when I go to the branch with the certificate, I would hate to think that mum was going to get shafted by the credit card company if it's not necessary and I can stop it.
  • MSE_Wendy wrote: »
    Do debts die with you?

    Sadly the old phrase when you die your debts die with you is misleading. What you owe when you die has to be paid before anything can go to your beneficiaries. If you owe more than your assets are worth, they’ll get nothing, but won’t be asked to pay the rest of the debt. But if they’re jointly responsible for the debts, they will have to make up the shortfall.

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    Hi Wendy. Does this sound true? a guy owes £10k on his Visa (only in his name) not wifes. He dies and upon production of death cirtificate. Visa say they cannot make the wife sell the house (in joint names). Just to pay this debt, as she was never a signatory for the Visa loan. So - could they, if they wanted to, make her pay the hubby's debt?
  • My dad passed away in August, he had been out of work for 6 months, the job centre found out he did 5 hours work and sent a letter to my mum saying she would have to pay £121 back.

    She did, but now they're saying they paid my dad too much DLA just before he died and are now asking for over £200, this is causing my mum so much stress. The house they have is rented and my dad had nothing of value, my mum is on Incapacity Benefit, only £98 a week, are they allowed to do this? thanks
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