Probate / Administration advice please

fascinated

DOes anyone know please whether a creditor can pursue an administrator of an estate for an outstanding debt that cannot be met from the monies in the estate?

My mother died intestate about six weeks ago and we have uncovered several debts. There is next to nothing in the estate and we are not obtaining a grant of representation as there does not appear to be any need.

Someone told me that if anyone takes on the responsibility of calling in monies and seemingly "administering" the estate then they can open themselves up to be personally liable for the debts? How can this be? I thought that as my mother solely signed the credit agreements and no-one else then if there is insufficient in her estate to meet the debts they should be written off.

All advice gratefully received.

I've also posted this on the familites board as I wasn't sure which was the most appropriate. Many thanks.

Fasci xx

hypno06

First of all, sorry that you have had to ask this question. I am sure you have got enough going on without the worry of this.

If the estate has assets, then creditors are entitled to be paid - but only to the value of the assets. Other things have to be paid before them - funeral expenses, tax if appropriate etc.

If there is not enough in the estate to pay the debts, then the debts die too. The administrators of the estate cannot be held liable, and cannot be pursued.

However, this will not stop some of the creditors trying to put pressure on you, so do not allow them to do this. Stand your ground, be firm, and remain calm. Write to them all and say that sadly there are no assets, and ask for confirmation that the debt against the estate has been written off. DO NOT agree to anything being transferred into your name.

I hope this helps. I think that Martin did a thread on the families board about what to do in the case of a death, so it might be worth a rummage around there.

fascinated

Thanks hypno. I have done lots of research online and everything you say has been borne out there. However I spoke to a Solicitor today who said I ought to tread with extreme caution as if the creditors think anyone is administering the estate they can be made liable for the debts. I honestly cannot see how that can be, but obviously it has made me very nervous.

I have felt sure for some time that the creditors will try it on - after all they are not going to be repaid an awful lot of money. At the end of the day though my mother had been making the agreed repayments on all the debts and she would have continued to do so had she lived. She wouldn't have tried to get out of paying them in any way at all, but I do think she has some sort of right to some peace now that she has died.

I will try and find Martin's thread on the families board.

Thanks again.

Fasci xx

RAS

Just to confirm. Debt die with the debtor,whatever the solicitor says.

Actually, i would challenge why you are paying him oif he gives such duff advice.

fascinated

Thanks RAS. TBH I work in a Solicitors (have nothing to do with Probate tho) so just thought I'd get some free advice from the probate department. The advice I got just didn't match the information I had found online so I started to panic. I'm just going to stand my ground here. The Solicitor felt though that if any assets had been collected in (which they have unwittingly because the bank simply changed a joint account into my stepfather's name solely and emptied an ISA account in the name of my mother into it when stepfather went into the bank with the Death Certificate just to let them know what had happened) then my stepfather could be left open to a claim.

We will see what transpires. I just wondered whether anyone had an experience of dealing with an insolvent estate and whether there was any way the creditors could legally pursue an executor / administrator for payment from their own pocket.

Thanks for the replies. I am grateful.

Fasci xx

fascinated

I should add the amount in the ISA was only £100.00 and the joint account had about £800.00 - half of which was my stepfather's anyway. The funeral was £3,049.00 so I think we are legally able to say that the estate did not even cover the funeral costs - the Solicitor said otherwise though - that the funeral does not rank before the debts. Again this is contrary to the information I have found online.

Fasci xx

RAS

fascinated wrote: »

The Solicitor felt though that if any assets had been collected in (which they have unwittingly because the bank simply changed a joint account into my stepfather's name solely and emptied an ISA account in the name of my mother into it when stepfather went into the bank with the Death Certificate just to let them know what had happened) then my stepfather could be left open to a claim.
x

That is different because your mother did have assets when she died.

However, I think the funeral costs, or at least the basics come before the other debts.

fascinated

If only I could find some authority that specifically states the funeral costs can be paid out first!

Thanks for your help.