Family debt passing on?

rocky39

Hi hope someone can give some advice.

My mother-in-law is German but lives here in UK & has done for 40yrs.

Her brother has recently died in Germany & apparantly left loads of debt (his estate didn't cover amount owed).

Creditors have tried pursuing his sons in Germany but they have refused.

My mother-in-law has just received a call from her sister in Germany, to say the creditors are now going to pursue the brothers & sisters of deceased so she should expect a letter.

Her sister has said that if my m-i-l also refuses the creditors will then go after her daughters, including my wife (who incidentally has never been to Germany & never met the deceased!!!).

Does anyone know if this is correct?

crawley_girl

I don't know for sure but it doesn't sound right or viable.

kevin_M

they will try. but as the agrement was not signed by your mother-in-law. she can tell them where to go as they dont have a leg to stand on

Bossyboots

We are presuming the law in Germany is the same as here but I think we need to clarify that.

If it is, then kevin_m is correct and only the parties to an agreement are liable to repay it. I can't imagine it would be different in Germany but that really needs to be checked out as there is no point giving advice on this if we don't know what the relevant law is.

MrsTinks

TO my knowledge then German law is the same as Danish and pretty much the same as UK Unless someone signed on any of the debts as a guarantor or joint debt then they haven't got a leg to stand on. They can get whatever they can out of his estate and that's all. They are I believe by law entitled to have first pickings over anything and if after that they still have debt outstanding then they have no choice but to write it off. They will however try to recover this as we all know And how many elderly relatives have been scared into paying up on things like this?

ts_aly2000

The Inland Revenue tried to get me to pay my partner's £15k tax bill. Not married to him, had only been seeing him 6 months. I was trying to help him sort out his debt mess and they actually sat there and asked me to pay it. I laughed. Then I declared him bankcrupt to shut the whole lot of 'em up. They didn't want to play it reasonably so they got nothing.

Debts are not passed down in an estate anymore. They used to be in the age of Charles Dickens, but that's about as far as it goes.

Why not suggest to your MIL that she ask whoever is chasing her for this money to send her to a debtor's prison. That assuming they have a time-machine.

rubix_76

ts_aly2000 wrote:

Debts are not passed down in an estate anymore. They used to be in the age of Charles Dickens, but that's about as far as it goes.

So, if I understand you correctly, if I were to "kick the bucket" and I was married with children and family (siblings and parents) who were still alive and I had a debt in "MY NAME ONLY" (no guarantors, or in joint names). That None of them would be liable, or "chasable" for my debt.

Is that really right ? I thought spouses could be liable for the debts ?

Johnhowell

rubix_76 wrote:

So, if I understand you correctly, if I were to "kick the bucket" and I was married with children and family (siblings and parents) who were still alive and I had a debt in "MY NAME ONLY" (no guarantors, or in joint names). That None of them would be liable, or "chasable" for my debt.

Is that really right ? I thought spouses could be liable for the debts ?

rubix_76,
Your "MY NAME ONLY" debts would be payable out of your estate on your death. Your executors have to "announce" your death (London Chronicle, local papers, etc) asking for creditors (and maybe even debtors) of the deceased. These debts take priority over any benefits in a Will. Once your estate is used up paying your debts then any remaining debts are cancelled and no benefits to those mentioned in the Will.
If you own a property jointly with your spouse your share (half?) has to be used for paying any debts. As has been incorrectly mentioned in several postings just because the mortgage gets transferred to the surviving spouse this does not mean the deceased estate does not include half the property value. Many mortgages now have death/sevious illness cover included in their terms.

Your "MY NAME ONLY" debts can not be paid for out of other parties assets, only yours. When my step father died a few years ago with £30k+ debts (unknown to mum) all were written off because his estate was worth only £320. The mobile home they lived in was my mums and the 4 times salary benefit from his work went to mum not his estate.

Regards,
John