Dad died and left mum with large dept.

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My dad Died aged 65 on the 16 of Feb and i'm ( his son )sorting the bills out but have found that my father has left mum age 64 with £34.454.00 all of which is unsecured and no way of pay it off.
There are three credit cards and two loans.
I have been to the banks that they are with and they say it will go to the estate which means mum..at the end of the day.
The house is paid off and she going to go on a full pension when things get sorted with the social, but with that and the bills to pay she will never be able to pay any part of it.
Plus he has been having a pension for over twenty years and not told the social, we think they have found out about it. this could be as much as twenty or more thousand pounds to pay back.
Also my dad did not tell my mum any of this "he did the bills."
I have told mum but only so much at the moment till after the funeral.
Any help on which way to go would be helpful. :confused:
Sitting in the corner of a round table talking about something i know nothing about......
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Comments

  • Kavanne
    Kavanne Posts: 5,093 Forumite
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    Does the house now belong to your mum or is it part of the estate? What else forms his estate?

    If there isn't enough money in the estate to repay the debt it doesn't pass on to your mum.
    Kavanne
    Nuns! Nuns! Reverse!

    'I do my job, do you do yours?'

  • truckhunter
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    The house belongs to my mum and there is nothing else in the estate.
    Sitting in the corner of a round table talking about something i know nothing about......
  • kiora
    kiora Posts: 600 Forumite
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    If the house is in your mums name then they can not enforce the debts if there is no estate.
    "In Italy for thirty years under the Borgias they had warfare, terror, murder and bloodshed but they produced Michelangelo, Leonardo da Vinci and the Renaissance.
  • Kavanne
    Kavanne Posts: 5,093 Forumite
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    Hopefully a helpful link: http://www.thisismoney.co.uk/help-and-advice/ask-an-expert/loans/article.html?in_article_id=403234&in_page_id=110
    No, any debt left over will have to be paid off from the deceased's estate, unless the card was held in joint names when the survivor assumes responsibility for the debt.
    However, card companies will review their decision on a case by case basis and in exceptional circumstances may simply write the debt off.

    This will usually be the case if the remaining balance is a small amount or the deceased left nothing in their estate.
    Kavanne
    Nuns! Nuns! Reverse!

    'I do my job, do you do yours?'

  • truckhunter
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    Thanks but im not sure what 'estate' means exactly
    Sitting in the corner of a round table talking about something i know nothing about......
  • Kavanne
    Kavanne Posts: 5,093 Forumite
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    Thanks but im not sure what 'estate' means exactly
    Definition of 'estate': everything you own; all of your assets (whether real property or personal property) and liabilities

    So unless your dad owned anything apart from the house (which is now your mum's) then there is no estate :)
    Kavanne
    Nuns! Nuns! Reverse!

    'I do my job, do you do yours?'

  • naijapower
    naijapower Posts: 1,393 Forumite
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    Thanks but im not sure what 'estate' means exactly
    To be honest, i was going to ask the same question. Can anyone expantiate
  • naijapower
    naijapower Posts: 1,393 Forumite
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    Kavanne wrote: »
    Definition of 'estate': everything you own; all of your assets (whether real property or personal property) and liabilities

    So unless your dad owned anything apart from the house (which is now your mum's) then there is no estate :)

    Many thanks
  • Swans1912
    Swans1912 Posts: 1,658 Forumite
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    Thanks but im not sure what 'estate' means exactly

    Any assets your father would of had such as savings and investments.
  • fascinated
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    "Estate" means anything your father owned, i.e. personal belongings, his car, money in bank accounts, any cash in his wallet, life insurance proceeds, savings plans, pension death benefits, and the house etc. If the house is in your mum's sole name and the debts are solely in your father's name, then the house is safe from the creditors I believe. However, if the house is in your parents joint names then half the equity in the house belongs to your father (subject to the terms on which they held the property in equity - you need to check the deeds and see whether they owned jointly and whether as joint tenants or tenants in common).

    If there is not enough in the estate to pay off the debts then they won't get paid. No-one else is liable to pay them if they are solely in your father's name.

    My mother died on the 02 February and left substantial debts that no-one knew about. She and her husband rent their property and she had no money in the bank so the debts are not going to be paid. It is also my understanding that reasonable funeral costs can be paid from the estate before any debts. Correct me anyone if that is incorrect.

    I hope this post helps - think I may have confused the issue more. Hope not. Sorry.

    Condolences to you and your family. I personally know that money issues and debt problems are the last thing you need to deal with this at this time.

    Fasci xx
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