do i inherit debt

pickle_the_dog

hi can anybody clarify..my poor mum passed on in jan of this year , and although there was no will and myself and 2 siblings were the immediate family , so after probate was granted we decided to sell my mums flat, to date we have not been able to sell it desoite cleaning/painting/carpeting etc and now we are having to pay council tax /maintenance charges and the mortgage 54000 interest only.
we are paying for this out of what is left from mums money (not a lot after funeral expenses) so I anticipate that funds will run out in 6 months, what i need to know is as the flat is still in mums name and i am pers representing mrs ... am i or my siblings liable for this mortgage if we cannot make any further payments, the current market value of the flat is in the 63000 bracket so although there is some equity although I would be happy to just give it back to the mortgage co as I am desperate to close this chapter .
thanks for your help
Mortgage is with the ever helpful halifax!

quantic

As far as I understand. You only inherit debt if you also inherit assets. For example;

If you inherited a house worth 100k and the person who left the house to you had a debt of 50k, you would need to settle the 50k debt from the sale of the house in order to collect the remaining 50k inheritance.

If the property is worth the same as the debt, then as far as I know, this can be written off and you will not be responsible for it.

SmlSave

Unless the debt is in your joint names or you've had the property transferred into your names then no you cannot inherit debt (although the companies will try and get it out of you!)

Once you sell the property any funds made from the same have to pay any debts first and foremost before going to anyone else.

hope this helps

getmore4less

So you have the house on the market at offers over £54k and it won't sell?

pickle_the_dog

getmore4less wrote: »

So you have the house on the market at offers over £54k and it won't sell?

it is still on for 60,000 which will just cover the estates agents fees , outstanding maintenance charges etc , i have also instructed the agent to not refuse any offer without contacting me , i am not in the slightest concerned about making a penny from the sale , i need closure .

Mojisola

This isn't a case of inheriting debts. The debts are only going to be incurred if you can't make the payments after your mother's cash has run out.

The usual situation is for those payments to be made and reclaimed from the estate when the property is sold. If that's not possible, you should look at reducing the price of the flat. If it's priced right, it will sell.

ceh209

i am not in the slightest concerned about making a penny from the sale , i need closure

Then reduce the price. Assuming there's no other assets in the estate, if assets > debts then you get the surplus, if assets < debts then the debts get wiped - you can't be held responsible for them.

I'm not sure if you should apportion the proceeds between all creditors (i.e. solicitors, mortgage etc), or pay all the fees then pay whatever's left to the mortgage people. But there's no way anyone should be chasing you for anything that's left to pay.

getmore4less

You need it sold drop the price.

Check with a solicitor that you cannot be held liable for any costs you personaly instructed as executor and that spending estate money on the house will not come back and bite you if there are outstanding creditors.


Did you ever think you would get any money making the risk of becoming an executor worth the time and the risk.

getmore4less

ceh209 wrote: »

Then reduce the price. Assuming there's no other assets in the estate, if assets > debts then you get the surplus, if assets < debts then the debts get wiped - you can't be held responsible for them.

I'm not sure if you should apportion the proceeds between all creditors (i.e. solicitors, mortgage etc), or pay all the fees then pay whatever's left to the mortgage people. But there's no way anyone should be chasing you for anything that's left to pay.

Mortgage gets paid first is it a secured debt.

There are rules for the rest.

Problem now is there have been expences that did not need to be spent.
As an executor you can be come personly liable under some circumstances.

Needs some proper legal advice.

Another option so no EA fees is pull the house and put to auction.

pickle_the_dog

getmore4less wrote: »

You need it sold drop the price.

Check with a solicitor that you cannot be held liable for any costs you personaly instructed as executor and that spending estate money on the house will not come back and bite you if there are outstanding creditors.


Did you ever think you would get any money making the risk of becoming an executor worth the time and the risk.

I elected my self to become executor as I live the closest so dealing with probate etc would be simpler , i suppose that we always hoped that the flat would sell quickly , i did not see that becoming an executor would be any risk , otherwise why would anyone nominate themselves..also somone had to do it..and I have not had to deal with this bereavement stuff before as mun dealt with everything after dads death., i thank you all for your advice,