Can debts be transferred to spouse after death

lee_d_m

Hi,

My parents got into debt a few years back, and have what I think is a DMP with CCCS.

The various debts appear to have been split between them, i.e. my mum is liable for some and my dad for others.

Just over a month ago, my Dad passed away, leaving everything to my mum.

He did not have any savings or other assets, just the house which was in joint names.

So, my question is, can the debts that Dad was liable for be passed over to my mum ?

One of the creditors seems to be implying that they can, or in the very least they are trying to find out what assets Dad left.

We tried talking to CCCS, but they said that they can't help in legal matters and that we should talk to a solicitor.

Before we do that, I wondered if anyone on here had any knowledge or experience of this.

Thanks

McKneff

I'm so sorry you lost your dad,

Any debts solely in fathers name will not be passed to your mother. Did father have any assets at all, a car in his name, jewellry etc. Personal items that could be sold. Did he not have any life insurance.

However, they could put a charge on fathers share of the house to be paid when and if mother ever sells the house

lee_d_m

Hi,

He had a car, the house was in joint names. My mum has transferred the car and house over to her name now. He had life insurance, but that only just covered the funeral.

Just to add a bit more info, there were a number of different creditors, but only one was tied to the house, i.e. if they sold the house they would have to pay off the debt with the proceedings of the sale. Roughly £3,000.

This is the one that has now written to my mum.

Any further info would be greatly appreciated.

Thanks

MrsTinks

I would think that if the loan was secured on the house then it would remain so... I can't see that they can force your mother to sell the house to repay them but I believe they would still have a claim on that part of your fathers estate once the property is sold or she passes on.... I woudl however suggest that she gets some proper legal advice after she obtains copies of the signed paperwork...

getmore4less

Who is the executor they have the legal resonsibility to deal with the estate.

lee_d_m

Hi,

My mum is the executor.

RAS

This is a bit of a minefield becasue so much depends on the legal status or each debt and of the house.

If the house was a joint tenancy rather than tenants in common, then the sole survivor now owns the house and it is not and never was part of the deceased's estate. If you read bluebacks thread on charging orders - the myth (restrictions) on joint tenancies you will discover that unless the restriction is worded very carefully, it is actually unenforceable when the house is sold.

And joint debts also pass to the sole survivor.

Debts that belonged solely to your father have to be paid from the estate. So your mother cannot just put the car in her name, she needs to pay the value of the car towards any debts that were soley the responsibility of your father. Ditto any personal items that can be sold for value. if the value of the estate is not enough to cover all the debts, she has to pay each one pro rata - so the debts are £5000 and the estate is £2000, the creditor owed £1000 actaully gets £400. if the executor does not send details of the estates value and make the required disburusements, the creditors can chase the executor for payment in her personal capacity.

has she put an advert in the Gazette/ As that stops any old debts reappearing and causing her more problems later.

lee_d_m

Hi Ras,

Thanks for the information. It is indeed a minefield, and every response I'm reading here tells me that we really need to get some sound advice in this situation before doing anything.

Could you (or anyone else) advise who we should really be talking to in this matter, is it a solicitor, CAB, CCCS. If you were in our position, who would you be talking to get the best possible advice on how to deal with this ?

Thanks

RAS

just checking England and Wales?Or Scotland? the law is different.

lee_d_m

We are in England

RAS

Assuming you are in England and Wales, contact your local probate office http://www.justice.gov.uk/guidance/courts-and-tribunals/courts/probate/ for basic advice as to what is actually included in the estate (like not the house if it was a joint tenancy but yes the car). Also the procedures for paying creditors if the estate does not have enough to cover all the debts.

May also be worth contacting Age UK who may be able to give you some free advice.

That will help you put together a list of questions that need to be answered by a lawyer; remember the cost of the legal advice comes from the estate before payments to creditors.