Loan, person dieing and order of importance debt needs to be settled.

theonlyone12

I am looking for some information.
A member of family has passed away and had an outstanding loan and a current account in credit with the same bank.
Now they have said that they will take the balance in the current account to offset against the loan.
I am aware they are allowed to do this however my question is that surely other higher priorty debts need to be settled first before they can do this ie the funeral costs.
Is this correct? Can we request that the bank pay the credit balance from the current account towards the funeral costs ?
Thanks

jonesMUFCforever

I think that the funeral cost do come before any unsecured borrowing.
You (if you are executor or the person dealing with the estate) need to write to the bank with a full list of assets and liabilities.
You then need to ask them for a cheque payable to the undertaker for any funds in the current account.

Errata

Funeral costs have primacy over all other debts and bequests in an estate.

PNPSUKNET

I wonder if the ofset rule comes in though...

MrRedundant

I'd be surprised if the bank can enforce any offsetting after death.

dzug1

PNPSUKNET wrote: »

I wonder if the offset rule comes in though...

Logically yes - the bank is a single creditor and is owed the the difference between the loan and the current account - or owes the estate the difference if it's positive.

Legally - no idea