Administration of and Insolvent Estate

charabanc

I am sorry to post here, but I cannot find a more suitable place to post (unless someone can point me in the right direction?).

Earlier this year my brother passed away, it was quite without warning as he was only 54.

However it has fallen to me, his sister to try and sort out the financial mess. I am his next of kin as he had no partner or children.

He had debts of nearly £30,000 and after expences, only about £7,000 in the bank.

I took advice form my union solicitor, and even had advice form a local solicitor, who both said that none of his debts were any more important than any other, and that included the council.

So I set about working out exactly how much each of them were entitled to, and sent out the cheques. Everyone has since cashed their cheques except the local council, who insist they should have been paid all their money first, and not just a share of it. I have contacted my solicitor again, at my cost, who is still of the opinion that they, and I, are correct and that the council are wrong.

Can anyone shed any light on who is right and who is wrong?

Many thanks.

Tixy

What sort of debt did he owe to the council? council tax? rent arrears?

what sort of debts were the other debts? unsecured loans/cards etc? utility debts?

Tixy

This link here http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/DebtsAndArrears/DG_10013093 shows the order debts should be paid off.

Rent arrears and council tax arrears and utility bills should be paid off before any money is paid to consumer credit debts.

charabanc

Hi Tixy, I have been to that link many times, it does say there is an order, but I cannot find what that order actually is?

Thanks.

Tixy

Its on that link.
First mortgage
Then rent
Then water
Then council tax
Then gas & elec
Then consumer credit debt

Annisele

I'm not convinced by the order on that link - it does list debts in a particular order, but I don't think that it explicitly says that debts should be paid in that order.

This website does give an order - but it doesn't give any references as to where the order came from, so I can't check that it's correct. On the face of it the order looks plausible - I know that reasonable funeral expenses do come first - but it conflicts with what the OP's solicitor has told him. It suggests that debts to "local and central government" come before unsecured creditors, but the OP's solicitor has said something different. I'd be inclined to believe a solicitor who knows about the specific circumstances over something random on the internet.

charabanc

I have today, after nearly 4 months of worry, recieved this email from the council in question,

"Dear Madam, I went to our clerk and solicitors and they confirmed that rent is not listed as a preferential debt. I have passed the pro rata cheque to our cash office and will pass the remainder of the arrear for a write off.
Please accept my apologies for the inconvenience we may have caused you. "

So it would appear the council were wrong, who would have thought that????

Just to be sure, if anyone finds themselves in this situation in the future, the council are not entitled to any arrears, or other charges for that matter, before anyone else. They all get equal percentages of the estate.

DVardysShadow

Complain to the council and ask them to reimburse your solicitor charges. Take it to the local government ombudsman if necessary. You have acted in good faith, you have paid them what they are due and you should not be out of pocket over this.

poppasmurf_bewdley

Why are you worrying about this? I know he was your brother but you are not responsible for any of these problems. You could walk away from them all and nobody could do anything about it.

If he appointed you as Executor, all you have to do is resign!

My late mother's brother did this to her - appointed her as executor in his will against her wishes (she was 84 at the time). I spoke to my solicitor and he advised that she should resign and leave everything to the authorities, which is what she did.

patman99

Op, why did you not section-off £1k to cover your expenses?. As for the council, well, just like the other creditors, they cannot have what isn't there.