What do banks do if someone that owes them £15k dies?

jonesMUFCforever

I'll say then shall I what every sane person on here is really thinking!
Do it man do it -
And before you ask yes the state will provide a pauper's funeral if your parents can't /wont pay.

EllieB_2

Blimey - some strange posts here - Ryan - as a previous posting here states - debts cannot be passed on to anyone else on death unless there is another party to the loan/debt in which case that person remains liable. With regard to how to get a death certificate - the death needs to be registered at the local registrars office -if unsure where this is then the local authority should be able to help you.

Debt_Free_Chick

As EllieB says, personal debts are not "inherited" or passed on in any way on death (assuming they are not joint - see later).

However, it is the job of the administrator of the deceased's estate to settle any outstanding debts. On death, all assets and possessions fall into the estate. The administrator should firstly pay the funeral costs, then pay the debts and then distribute the rest of the estate as stated in the deceased's will (or the intestacy laws, if no will). So, in short ..... they are paid by the estate and if there are insufficient assets in the estate, then the lender loses their money.

Joint debts are usually completely joint i.e. if one person fails to pay - for any reason - then the other person is completely liable for the whole lot.

Bossyboots

Ryan.Maloney wrote:

PS - Who issues Death Certificates? :rotfl:

Your (figuratively speaking) next of kin are given a doctor's certificate certifying the cause and time of death. This can be from an attending doctor if the person had been undergoing medical treatment and the death was expected or from the coroner if a post mortem was needed. If there are concerns surrounding a death then the certificate may not be issued straightaway and a death certificate cannot be obtained.

Once the certificate certifying death is available, this is taken along to the deceased's local registry office where it is handed over and the registrar will take the details of the person registering the death and their qualification for doing so. All this, together with the information from the doctor's certificate is then incorporated into a registry of an entry of a death and a certificate printed out, signed and handed to the informant.

looby75

Just out of curiosity, my (not quite ex) husband and I have 2 joint life assurance policies. We have decided to keep paying them even though we have been separated for over 2 years now as they were taken out when we were much younger and the premiums for us to start again on our own will be a lot higher now.

He has run up a fair bit of debt since he left me and has recently taken a large loan of aprox £35,000. If he died would I be liable to pay back his loan and any other debts out of our joint life assurance payout?

If so the way he's been spending money I would end up having to pay out a sizable amount of the money I would receive (supposedly to pay for raising our two children) to cover his debts that I had no benefit from.

Debt_Free_Chick

looby75 wrote:

He has run up a fair bit of debt since he left me and has recently taken a large loan of aprox £35,000. If he died would I be liable to pay back his loan and any other debts out of our joint life assurance payout?

No - it comes out of his estate. This would be the case even if you remained married.

If so the way he's been spending money I would end up having to pay out a sizable amount of the money I would receive (supposedly to pay for raising our two children) to cover his debts that I had no benefit from.

How have you made sure that the life assurance money goes directly to you, and not into his estate?

Rikki

Ryan.Maloney wrote:

Again, this is a hypothetical question and has nothing to do with me or my debt.

Jeez. Read the sentenece and the actual words in it.


PS - Who issues Death Certificates? :rotfl:

There are people on this site with real problems lets concentrate on helping them and not waste time on hypothetical questions.

looby75

Debt_Free_Chick wrote:

How have you made sure that the life assurance money goes directly to you, and not into his estate?

We have been told that because they are joint life assurance policies any payment will come directly to me, automatically, as I am the second name on the policy. Is this bad advice?

Debt_Free_Chick

looby75 wrote:

We have been told that because they are joint life assurance policies any payment will come directly to me, automatically, as I am the second name on the policy. Is this bad advice?

Might be best to put a post on the Insurance Board. I thought that a joint policy simply paid out to the deceased's estate on death - so if your husband died, then the money goes into his estate.

The alternative way to provide for life assurance is by writing the policy in trust - so that the money goes to someone else. Or life of another policies - you take out a policy on hubbie's life; he dies, money goes to you - and vice versa

Post on the Insurance board to check my understanding - if I'm wrong (and it would be great for you if I am) then someone will confirm it.

looby75

:eek: thanks for that. I'll go and ask on the insurance board now. I don't want to be paying for half a life policy just for it go go to pay off his debts for things he has bought with his girlfriend (who he left me for! :mad:)