Do I need to repay deceased husbands unsecured credit cards?

beckysbobbles1

My husband passed away in August and I am finalising the estate now the grant of probate has been issued.

He has about £5,000 worth of credit card debts. All are held in his sole name and are not secured on the house.

None held any insurance.

Now, there was life insurance to repay the mortgage and a little extra but I have been told by various other people that I should not ahve to repay these debts?

I was going to as I thought I should but legally do I need to?

I am the sole executor of the estate.

dazza.mk

Your husband's estate will need to repay the debts it is only after all debts are paid that any remainder can be distributed to beneficiaries. In the event there is nothing left in the estate then you personally are not liable for them.

HappyMJ

You may have to out of the life insurance proceeds depending on how the policy was set up. If there is money in his estate then his estate will have to pay the debts. Similar to the life insurance for the mortgage. It's usually set up to pay off all debts as well. The amount owing is the amount outstanding on the day he died no further interest or charges should be added. However, if the proceeds only cleared the mortgage and there is nothing left then the house and it's contents transfer to you and the debts will be written off.

YorkshireBoy

beckysbobbles1 wrote: »

the grant of probate has been issued.

The forms you completed, and the accompanying guides, will provide assistance in this matter.

If you have a positive number at the end of it, then you have a responsibility...a legal one...to repay creditors out of this before distributing 'residue'.

dshart

Debts should be paid off by the deceased's estate in the order of funeral costs, death taxes, secured debts and unsecured debts. However, where the deceased's estate is not large enough to cover debts, a lender cannot make a claim on the estate.

The above quote is taken from "This is Money" website and would indicate that any money left over would need to go towards the credit card debts, but I do not believe they can make you sell the house to pay them.

McKneff

Maybe I'm wrong but wouldnt the house, if they were joint owners and one died then the house automatically goes to the living spouse so this wouldnt be counted as part of the estate. But would probably be different if the house was owned as Tennants in Common, because the deceased would actually own half the house.

Just my slant on things but Im happy to be corrected if Im wrong.

beckysbobbles1

Thanks for the replies. I thought as much. I think it's right, there is money left in the estate, therefore debts need to be paid.

Thanks again.

lisyloo

Maybe I'm wrong but wouldnt the house, if they were joint owners and one died then the house automatically goes to the living spouse so this wouldnt be counted as part of the estate. But would probably be different if the house was owned as Tennants in Common, because the deceased would actually own half the house.

That's my understanding too, but in this case it sounds like there is cash outstanding in the estate.
Life insurance can be written in trust and outside of the estate too, but if there is cash in the estate then debts have to be paid before the beneficiaries inherit.

bris

If you havn't already done so, call the CC bereavement team to stop any further interest.