Help with deceased estate

Beebus

Hi,

Could anyone offer me any advice at all? My uncle has passed away quite suddenly and unfortunately didn't leave his affairs in much order. Myself and my brother are his only relatives, he had no partner or children.

Having sorted through the paperwork I've managed to establish he had no savings, no cash (other thans a couple of hundred pounds that will be swallowed up by direct debits), no assets, no investments other than a few premium bonds and although potentially there's a life insurance policy for £3500 there's nothing to suggest he's paid the premiums for this. His personal possessions are meagre to say the least, just knick-knacks and 'stuff' but nothing of value. In addition, he has no property as he rented and this was paid for by housing benefit. On the other hand, he has managed to accrue almost £30000 in unsecured debts through credit cards, and 2 loans (how he has the amount of credit I'm not sure as he was 75 years old with only a state pension as income, and clearly a spending problem!!!)

I understand any debts like this are to be paid from the estate. Strangely enough he has left a will with myself as the sole beneficiary, despite not having the proverbial pot to p*$$ in!!

Am I right in thinking all of the above renders the estate insolvent? If the policy can be claimed from, I assume this will pay for the funeral and anything left over will pay his outstanding utility bills before his card debt.

How do I prove to the creditors that his estate has no money in it? And is this something I can do without enlisting the help of a solicitor? I assume I won't need probate due to the non-estate situation and hopefully his 2 banks will simply allow me to close the accounts down without too much trouble. My concern is if the life insurance policy isn't valid, I will need to find the funeral money myself so if at all possible I'd like to be able to manage this without any expensive legal costs.

Thanks in advance for any help.

McKneff

You could apply for a funeral grant, not too sure though seeing as he has family around.
You could check at the council.

Everything you say is correct by the way.
and Im sorry for your loss

Errata

Info on eligibility for a funeral grant here http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/Bereaved/DG_10018660

Beebus

Thanks to you both for the quick reply. I don't think I'm eligible for a grant but will find the money anyway, as you do for a funeral!

It's more the legal side of it that worries me, whether I can sort this without a solicitor and how I might prove the absence of money in the estate to his creditors?

Much appreciated

Errata

You can deal with it without a solicitor. If an estate is small, and in your case the only asset is the insurance (possibly), the insurance company may pay out without sight of letters of administration from the Probate Office.
Probably the quickest solution for you is to phone the Probate Office and ask for guidance, they're very helpful .

chattychappy

Beebus wrote: »

I've managed to establish he had no savings, no cash (other thans a couple of hundred pounds that will be swallowed up by direct debits)

On death, DDs, cheques etc should all bounce. Obviously this will only happen if the banks are notified. Yes - this even applies if he signed a cheque before death. The creditors concerned (if they are creditors) just have to make their claim on the estate like everyone else - and may only receive a fraction if the estate is insolvent.

In theory, if they were paid out after death they could be reclaimed.

jamesd

Tell the bank that he's died and that they should freeze his accounts. Ask them what the procedure is for them to use the remaining funds in his accounts to pay part of the funeral expenses. Will probably take a certified copy of a death certificate and an invoice from an undertaker and they would send a cheque to the undertaker.

Don't worry about direct debits or any other bills until the funeral is paid. Anyone sending direct debits is just another creditor of an insolvent estate and paying them comes after paying for a funeral. Funeral has priority over the rest.

dzug1

You really don't have to 'prove' the lack of assets to the creditors in any depth - you just tell them that the funeral bill exceeded the assets.

You don't actually HAVE to do anything to wind up the estate at all if it's that insolvent. Invite the creditors to take on the task if they get too pushy - they are entitled to do so if the named executor(s) decline to act.

Beebus

Thanks so much for all your replies. I've contacted all the creditors to make them aware and all have been pretty good. The life insurance company have confirmed there's a small policy in place for £3000 but require a grant of administration to release it which appears to be quite a time consuming process for no gain (plus no local office so time off work and travel costs). As the money will all be accounted for by the creditors, do I legally HAVE to claim for it? There's another smaller policy and a small amount in a bank account that will cover a large amount of the funeral and I think both are willing to release it without probate due to the small amounts involved.

I really can't believe what a time consuming process all this is Thanks for any advice, I know this is probably posted in the wrong place but can't find anywhere else to put it! Please move if any better place for it.

runnerbean17

My dad died over 3 months ago and we are still sorting through paperwork. Even with a will and everything being left to my mum it just seems never ending. I thought it would be so much simpler. Sorry for your loss and I hope you get this all sorted soon..

Beebus

Thanks, same to you runner bean!