Debt if parent dies

sandralovescats

oscar52 wrote:

Im not getting involved in a slanging match. I obviously do read posts - the information I have given out is correct. If the OP wants any more information, from someone who has done this relatively recently they can PM me.

Heather's Mum's policy is for LIFE INSURANCE, not just for funerals.

How difficult is that to understand????

magyar

hypno06 wrote:

I always understood that unpaid taxes and "reasonable" funeral expenses were allowed before other creditors. So that the cost of the funeral, buriel or cremation, undertakers costs etc are allowed, but the cost of food at the wake afterwards isn't.

If the life insurance policy is payable on receipt of the death certificate, pay the funeral bill without delay and then let the creditors fight over what is left, if anything.

Don't even need to tell the creditors that she has died until after the funeral - they should accept that as being a reasonable timescale - no one would expect you to be calling them within 24 hours.

Just checked that up and Hypno is 100% right.

"The reasonable cost of a funeral is always the first thing that has to be met from a deceased’s estate and takes priority over all creditors including the Inland Revenue. " (from Wiltshire co.council's web site)

magyar

sandralovescats wrote:

Heather's Mum's policy is for LIFE INSURANCE, not just for funerals.

How difficult is that to understand????

But I think we've now worked out that's fine anyway. Chill everyone. Have a cup of tea. :j

heatherw_01

sandralovescats wrote:

Heather - has your Mum actually done anything about the debts that she has?

sandralovescats wrote:

I think, maybe, you need to have a long chat with her re her debts.

You really do need professional guidance here. To do that you need to be in full possession of the facts. She really does need to speak to someone. If you volunteered to help her out, would she let you do that? Get the list of her debts together. Maybe you could explain to her that there is help out there, if she would only let someone help?

A parent and child situation can be very difficult, I know. It was only when my 73 year old Mum broke her leg that I found out every detail of her income and expenditure. Although she wasn't/isn't in debt, money is a very private thing.

What about if she went to the CAB? She would still need her financial details, though.

Basically to cut a long story short this is how it goes:

She moved out of her house when I was 14/15 as she liked this married man and wanted to move to be nearer to him.

She then made me move into rented accomodation as she wanted to sell mine and my grandparents houses as she was going to stay where she moved to. I told her he was dodgy and would rip her off and he did.

This guy ripped her off for every penny of the values of the houses and now she is broke.

She then let a guy that lived in her flat building rack up £20k debt (probably more) somehow by giving siging contracts for things with him saying he would pay, but of course he didn't.

She is very gullible and gave money away to people without ever telling me. At least she won't/can't do this anymore.

The debt is not hers but she now has to pay for it all.

She spoke to the companies and reduced the amount she has to pay a month to a minimum but they cannot do much else about it. Citizens advice also helped her a lot but again there is only so much they can do now.

She is now retired on a state pension and in lots of debt.

I have had to deal with all this since I was about 15 and am very weary of it now. We do not really get on and we do not live near each other.

I really don't know what else she can do other than do bankrupt, but then that costs to do too!

sandralovescats

The main point here is regarding possible bankruptcy.

Heather - your Mum might just be better off going bankrupt.

Have you any idea how much debt we are talking of here?

If she went bankrupt all of her debt would be written off.

The policy she wants to keep for her funeral is £8 per month. The OR would sell the policy back to your Mum for 13 x £8 = £104.
It depends how much the policy is worth on completion - you could phone and ask them about this.

dazza32

ive heard about planning for the future ? but not being funny its like your wishing your mum dead or something worrying

heatherw_01 wrote:

If my mum died, would I be responsible for all her (large amount) of debt which she has with numerous companies?

She rents so the debt could not come out of there either.

Can anyone tell me if I would have to pay her debt?

Should she declare bankruptcy to make sure?

Help would be appreciated

sandralovescats

heatherw_01 wrote:

Not really.


I really don't know what else she can do other than do bankrupt, but then that costs to do too!

If Mum is on benefits, which I think she will be, she would get her Court fee removed so a bankruptcy would cost her £325.

Myvesta I know for sure do have a fund for people who are in dire need of assistance for money to pay for their bankruptcy.
Not sure if the CAB can help out with fees, it might be worth asking.

Could you have a family whip-round and everybody put something in towards bankruptcy?

heatherw_01

sandralovescats wrote:

The main point here is regarding possible bankruptcy.

Heather - your Mum might just be better off going bankrupt.

Have you any idea how much debt we are talking of here?

If she went bankrupt all of her debt would be written off.

The policy she wants to keep for her funeral is £8 per month. The OR would sell the policy back to your Mum for 13 x £8 = £104.
It depends how much the policy is worth on completion - you could phone and ask them about this.

Probably about £50k, she won't tell me fully.

sandralovescats

dazza32 wrote:

ive heard about planning for the future ? but not being funny its like your wishing your mum dead or something worrying

It must be very worrying when a direct family member is heavily in debt and you don't know the consequences of that debt. It would worry me too!
Methinks it is a good idea to find out before the event rather than to have a nasty shock afterwards.
At 64 Heather's Mum may have another 30 years or more to live - so the debt needs to be sorted out now really.

heatherw_01

dazza32 wrote:

ive heard about planning for the future ? but not being funny its like your wishing your mum dead or something worrying

She has to have a heart operation and wants to prepare incase she dies.

I wanted to know if I would be responsible for £50k, wouldn't you?