Credit Card Debt and Death

amersall

dunstonh wrote: »

Potentially it can be either.

If the policy is set up as single life, single owner and not in trust then the policy pays out into the estate. If it is in trust or has a different owner then it will be paid out to them. Most policies are not placed in trust so would form part of the estate.

Hi dunstonh, what about a joint life first death policy? and does any life insurance have to have a named beneficiary?.

chattychappy

theonlyone12 wrote: »

Luckily, I doubt it will be me being executer. Sounds like a headache!

The Will should give who the executors will be (they can decline). Alot of people put banks or solicitors. If there is no contention, then I'd say it's better to have a trusted relative/friend as the executor who would then be free to employ a solicitor as necessary.

lisyloo

I wouldn't say it was a good idea to employ a bank or solicitor for a tiny estate (a few thousand).
We sorted out an estate for an elderly relative of about £5k.
We paid our solicitor £5 to make a statutory declaration. My FIL had to go to their office and read out a declaration which took about 10 minutes.
You wouldn't want to pay hundred of pounds in fees on a tiny estate unless there really is no-one willing to do it.

jonesMUFCforever

lisyloo wrote: »

I wouldn't say it was a good idea to employ a bank or solicitor for a tiny estate (a few thousand).
We sorted out an estate for an elderly relative of about £5k.
We paid our solicitor £5 to make a statutory declaration. My FIL had to go to their office and read out a declaration which took about 10 minutes.
You wouldn't want to pay hundred of pounds in fees on a tiny estate unless there really is no-one willing to do it.

Banks would be unlikely to act if the estate was a small one - it would not be worth their time.

lisyloo

I expect that a solicitor will do whatever you want them to do for a rather large hourly rate (my MIL had a personal injury case and it was £250 per hour).

chattychappy

lisyloo wrote: »

I expect that a solicitor will do whatever you want them to do for a rather large hourly rate (my MIL had a personal injury case and it was £250 per hour).

When I worked for a London law firm on a PI case, the chargeout rate would be as much as £515 per hour depending on who was doing the work. The chargeout rate for non-qualifieds started at £135 per hour. Letters/emails read/written were charged at a minimum of 3 units (18 minutes). A right 'ole gravy train.

Alot of this stuff is CFA (no win, no fee) now. For Wills/probate you really want to agree a fixed fee. That's why you're better off with a person as an executor who can then shop around or seek legal advice ad-hoc. With solicitors named as executors in the Will, they can get away with murder - it is difficult for beneficiaries to challenge what they do. (Beneficiaries are not clients.)

If the estate is small, there is no argy-bargy and you can do sums then DIY is the way to go. Bear in mind that executors generally have personal liability if they mess up - so it does need thought.

datostar

jonesMUFCforever wrote: »

Taxman no longer gets priority - everybody will be treated the same.

But if inheritance tax is due, you can't get Grant of Probate or Letters of Administration until the IHT situation is resolved, so can't settle the estate. That does sound like priority, albeit indirect. Personal tax liability is different but still has to be settled eventually.

RainMaker_2

dzug1 wrote: »

You still can't insure against a known event

We're all dieing. The event of death is known, just not when.

Devil's advocate

maureen_04

When my mother died she had about £12k in different accounts. Plus a life insurance policy payable to me. She didn't leave a will and was in rented property.

I was able to sort out her affairs with the help of an Affidavit that cost £30 to be sworn in front of a solicitor. I paid for her funeral and her utility bills and rent. However she had a large amount on HP and some catalogue bills and a Credit card bill totaling over £5K. I just sent them copies of the death certificate, and said there was no money in the estate. Got a couple of letters but ignored them as they were forwarded from her empty address. You can't be made to pay someone

else's

debts. I split the money between my step sisters and her grandchildren. IMO those who deserved it, not the vultures who circulate

after

someone has died. Any debts by someone else die to, unless you are a guarantor for the debt.

dunstonh

You can't be made to pay someone

The executor of the estate can be prosecuted for fraud and misrepresentation though.

I split the money between my step sisters and her grandchildren. IMO those who deserved it, not the vultures who circulate

If she owed money then those people are not vultures. IN this case, the family are closer to being classed as vultures as they took money that there were not legally entitled to have.