A deceased person's credit card debt

Tina74_2

Advice and suggestions area all welcomed and appreciated!

A friend of mine "Freddy" passed away a few days ago aged 83. He had been ill for some time. He left behind 3 credit cards totaling £2k approx. 2 of the cards are barclaycard and one is mastercard by Natwest. He has left behind a widower in her late 70's and both of them were/are on benefits and were paying from a joint account £10 to each card. The cards were in his name solely however.

Both Barclaycard and Natwest have said if there isn't enough money in any of his bank accounts to pay the outstanding, it falls to his estate to pay. There isn't anything in his estate that could pay, no property, no hidden chests of gold bars. Barclaycard are sending out an assets and liabilities form to be filled in. Natwest however are saying that the outstanding balance has to be paid out of the joint bank account they had, despite the credit card being in his name solely. The widower has only £3k in her account, that being the sum total of her money.
So I'm assuming the Barclaycard people will also say the same thing.

Last year Freddy did go to Natwest and ask them since he was elderly, retired, on benefits and in rented retirement accommodation if there was any way it could be reduced to a lesser figure, so he could realistically find a way to pay it, for example it's currently £700 and was asking if it could be dropped to £300. NatWest refused.

Does anyone know if Natwest and Barclaycard can legally hound the widower for this money and in the case of Natwest take it from her joint (in process of becoming her sole name) account?

Thank you all in advance!

PNPSUKNET

yes as it was a joint acc

McKneff

ahh bless them both, no one of that age should be hounded by anyone.

Not sure about the joint account but i do know that she is not liable for his debts.
First and foremost the funeral has to be paid out of his estate if there is nothing left from his estate after thatis paid then the debt dies with him.

Just tell her to fill in the assets and liability form, there really shouldnt be a problem.
they may be only be able to take into consideration half (his half) of that but, like I say, the funeral costs are the first debtor to be paid..

I'm sure that people more knowledgeable than me will be along to help and
all credit to Freddie for trying to do it himself.

Cant imagine what this poor lady is going through having lost her husband at a time when she should be left in peace to grieve.

Good luck to her and to you for trying to help.

Tina74_2

Hi
Thank you both for your contributions so quickly!
All 3 cards were in his name only....but the monthly £10 was being paid to each card from their joint account. The funeral was paid for previously by a funeral plan Freddy set up a while back, so that's all dealt with. Natwest so far don't look like they're going to let go of this.

Yes, the widower should be left in peace but banks will be banks....

alfred64

If the money is there why not pay it and have it done with. It was being paid from the joint account anyway, so what's the difference?

If the widow's money is kept in a separate account in her name the credit card comps will not be able to touch it.

Fruit_and_Nut_Case

alfred64 wrote: »

If the money is there why not pay it and have it done with. It was being paid from the joint account anyway, so what's the difference?

Tina74 wants to know if the widow is liable for the debt. If not, why should the lady pay?

alfred64

Fruit_and_Nut_Case wrote: »

Tina74 wants to know if the widow is liable for the debt. If not, why should the lady pay?

Offer some advice, then.

bouncydog1

I think that the assumption by the credit card co will be that the joint account was 50% the elderly gentleman's, so they are entitled to recover up to the value of his share towards the debt. If he had no other assets then I believe that they should cancel the balance.

However his widow should assume that his share of any joint assets will be required to settle the debt and by her transferring them into her name after his death will not cancel this fact.

I'm sure experts will be along to help, but unless she can prove that he had no assets at all e.g. if all the money in the joint account was hers from a pension benefit or something, then the c.c. company will expect repayment.

pagelad

Id get the money out of the joint account now and into a different bank asap.

That way they cant touch it

chattychappy

pagelad wrote: »

Id get the money out of the joint account now and into a different bank asap.

That way they cant touch it

Bad advice which is dangerous to follow.

In principle some of the money (probably 50%) can indeed be required to pay off the debts.

System

At death any money in a joint acc passes to the surviving account holder and DOES NOT form part of the deceased's estate. I don't believe that the banks can claim that the CC debt be paid from the joint account.

Technically at point of death the account ceases to be a joint account.

From direct.gov

Money in joint accounts

The deceased person may have held money with another person in a joint bank or building society account. Normally this means that the surviving joint owner automatically owns the money. The money does not form part of the deceased person's estate for the purpose of administration and therefore does not need to be dealt with by the executor or administrator. However, a deceased's person's share in joint property is treated as part of their estate for inheritance tax purposes, both on death and on gifts made during their lifetime.