Please help - Loan payments after death

miss_dolly_girl · 7 August 2008 at 7:36PM

Hi guys,

My grandmother passed away recently.
My dad has bee sorting bank accounts.
However, when he advised Yorkshire Bank of her death, they advised that the personal loan she has with them may not be written off and may need to be paid.
He now has to write to their head office for a decision.

I'd just like some advice on whether this is right and if there is anything we can do, as i found it quite insensitive.

Thanks

Dolly

marshallka · 7 August 2008 at 8:04PM

miss_dolly_girl wrote: »

Hi guys,

My grandmother passed away recently.
My dad has bee sorting bank accounts.
However, when he advised Yorkshire Bank of her death, they advised that the personal loan she has with them may not be written off and may need to be paid.
He now has to write to their head office for a decision.

I'd just like some advice on whether this is right and if there is anything we can do, as i found it quite insensitive.

Thanks

Dolly

Was their money in the estate to pay off the loan??

This may be of help to you

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/DebtsAndArrears/DG_10013093

~Beanie~ · 7 August 2008 at 8:05PM

Any debts that someone has when they die do ot die with them, they need to be paid out of the estate - unless she took out protection that will pay it off upon death.

Therefore if your grandmother left any money or any property, the loan will need to be paid off from the proceeds. If she left nothing, I don't think that there is any thing that Yorkshire Bank can do.