Deceaseds insolvent estate help dealing with the creditors

chezmck

Hi all
Hopefully one or two of you guys can help with this.
Recently a family member has died leaving behind quite large debts. His estate consists of his bank account contents (which wont cover the cost of his funeral) no house, assets etc. There is council rent, gas (no electric paid on key card) council tax, a loan and 3 large credit card debts all expecting to be paid.
How do the family go about proving to these companys there is no estate or money to be claimed in his death? would a print out of his bank statements copied in to each letter be sufficient? also would anybody be able to point me in the direction of a template letter to send to these company's please?
any help would be much appreciated:T

handyman123_2

Hi I'm no expert on this and my understanding is very sketchy. As I understand it there are Death Grant's that the next of Kin can apply for but only if they are in receipt of benefits. Therefore the cost of the Funeral falls on the Next of Kin and the Family. After that any of the deceased's funds are to be apportioned equally to the creditors. As you say this person was insolvent, so they are each entitled to an equal share of nothing. I agree that a copy of the bank statement along with a copy of the death certificate should be sufficient. You may need to get a solicitor to sign the statements to prove that they are a true and genuine copy.

As I said my knowledge of this area is sketchy I have had similar things to sort out recently. The major problem you could have is if anyone has signed as guarantor of any loan.

I hope in someway this helps until someone with firm knowledge comes along with more concrete information.

Regards, Handy.

bigmommamuppet

Firstly sorry for your loss. Unfortunately we had to go through the same thing last year with my BIL.

First thing you need to do is inform the bank so that they can suspend the account and stop any payments from being made. You will need to send them an original copy of the death certificate.

Write to the creditors, utilities etc to inform them of what's happened. I used the template below. I didn't have to send proof of no assets they just believed me, not sure why!!

If the next of kin is in receipt of benefits then they can help with the funeral costs from the DSS. If not then the family are liable for the funeral expenses. To release the funds from the bank account you need to send the bank copy of the receipts for the funeral expenses and they will pay the money direct to the funeral director or to the party who paid for the expense.

HTH

BMM

Dear Sir/Madam

Reference: XXXXXXXXx

Notification of Death

I wish to notify you that XXX XXXXX of X XXXX Street, XXXX, XXX XXXX died on XXrd XXXX 2010. I have been authorised by his next of kin XXX XXXXXX to act on her behalf and to deal with any further correspondence regarding his account. Please find enclosed a copy of the death certificate for your records.

XXXX was receiving income support and as a result of this there is no estate or assets for us to administer. If you require further details please do not hesitate in contacting me on XXXX XXXXX.

Yours faithfully

chezmck

Hi there
thanks for your reply its very much appreciated, the family have no problem in paying for a funeral and have done so, the problem would come in trying to pay the debts!
as there is no 'estate' as in assets to bring in, to pay out the debts nobody will apply for probate on his estate. likewise nobody wishes to instruct and pay for a solicitor to deal with these matters as there are no funds to pay their bills in acting on his behalf.
nobody stood surety on any of the debts they were all unsecured in his sole name.
thanks again:A

bigmommamuppet

We never went for probate or solicitors either. BIL had about 1k in his account so bank were happy to release the funds, as funeral expenses have to be taken off first before creditors have rights to any monies left over. Therefore as you've said that there isn't enough money to cover the funeral, you’re ok to write to creditors saying that there is no assets to administer.

Also I would contact the bank and request that any money in the account be paid to the family members who paid for the funeral.

BMM.

chezmck

Thanks again sounds like you were in just the same shoes, at such a sad time we have had to become legal and secritarial experts and you've been a source of comfort reasurring we are doing the right thing. It felt like we were out of our depth and worrying about matters we didnt even know about. :A