Minimising problems for your survivors

margaretclare

A key piece of advice left out of the fact sheets about discussing 'unpleasant issues' relating to your own death or lack of capability is as follows : set up a joint bank account NOW with (probably) your main beneficiary or attorney-to-be or whoever will need rapid access to your money - for instance to settle bills, pay funeral expenses, etc., after your death.

When DH and I got together, and even after we got married, he was pretty resistant to the idea of us having a joint account, mainly because of bad experiences in a former marriage.

However, when I was a part-time trainee adviser with the CAB I came across a very distressing case. A widow came in, very upset, didn't know what to do. Her husband had been one of those who was in charge of all the money, paid all bills, gave her weekly 'housekeeping' and apart from that, she only had her state retirement pension which was 60% of what he got. She was getting letters from utility companies printed in red, had no idea about any insurances, had never paid a utility bill in her life, where the paperwork was etc. Until his estate went through probate she couldn't access any of 'his' money.

I went straight home and talked to DH. He saw the sense of it. We set up a joint account which we both tip into and which pays all regular monthly bills, utilities, insurances, all the essentials. At least if one of us dies the other can be sure of having utilities paid for. That joint account has worked well for a few years now. There isn't a cash card or a cheque-book with it, neither of us can draw money out of it for frivolities as his ex did, but it has got an overdraft.

We also have power of attorney for each other.

Errata

Her husband had been one of those who was in charge of all the money,

Very sad, but it takes two to tango.

blossomhill_2

I can see the merits of a small shared account but would like to stress a couple of things, as some of the info on this thread is misleading;

After a person dies, the funeral would be paid for by their estate, not their family, if the estate has money in it - the bills for the funeral and wake (including the deposit) should be sent to the bank or building society with the bulk of the money in it, and a request that they pay it while the estate is being sorted out.

The utility companies, once notified of the death, will keep sending bills but can wait for their money until the estate is sorted, the utilities will not be cut off

It is important to keep them informed of the situation but not panic and try to pay the deceased's bills.

House insurance is the main exception and the executors may need to pay this ahead of probate or letters of admin

John_Pierpoint

blossomhill wrote: »

The utility companies, once notified of the death, will keep sending bills but can wait for their money until the estate is sorted, the utilities will not be cut off

It is important to keep them informed of the situation but not panic and try to pay the deceased's bills.

........that is the legal position BUT the property still needs water, phone, electric and heating; especially if you want to make it looked "lived in" to keep out squatters and eventually to sell it for the best price.

The utility companies, including TV licensing, will attempt to make your life hell; so it is easier to simply keep all the bills up to date and claim against the estate, clearly indicating which charges are the responsibility of the deceased, which includes funeral, wake and memorial; and which is an expense of the administration following the death.

I have fond memories of telephoning BT to tell them that the new owners of the house were going cable and would not be wanting their services and being read the riot act for not telling them someone had died.
(BT just love charging big fees for pretending that turning off a number and turning it on again at the exchange costs a fortune - they also tend to send the personal representative a funny little cheque for over paid rental immediately; before an account has been created to take it.)

Getting in touch with the council tax people is important - you get a holiday until probate plus 6 months.

blossomhill_2

John_Pierpoint wrote: »

........that is the legal position BUT the property still needs water, phone, electric and heating; especially if you want to make it looked "lived in" to keep out squatters and eventually to sell it for the best price.

The utility companies, including TV licensing, will attempt to make your life hell; so it is easier to simply keep all the bills up to date and claim against the estate

John, My advice here was based on my experience following your advice to me late last year; I haven't paid any further bills on the house I am administering.

The heating is still on to maintain frost protection and satisfy the insurers, the lights etc on timers, phone connected, the utilities are waiting patiently for their payments and have been completely understanding.

Not everyone has any spare cash to pay out on behalf of the estate and then claim back from it, I certainly haven't but have had not problem keeping utility companies at bay pending probate

The bank has paid for the funeral
So I repeat my advice to any bereaved persons to keep calm and keep the utility companies informed

John_Pierpoint

Well done.
I had a nightmare with British Gas - black/red letters flying about from the recoveries department. Every time I went to the house, I expected to find the gas cut off. Even had the supervisor telling me off over the phone for seducing one of her workers to do the sensible thing and send a meter reader.

The deceased had died with arrears on the gas bills that were themselves estimated works of fiction. I needed an "official" bill because a different group of beneficiaries were paying for the gas before and after the death.

Got a lot a hassle from the TV people too, when the free "over 75" licence ran out - had to remember to keep the curtains sufficiently drawn to stop nosey parkers looking in the front window.:D

PennyForThem_2

John_Pierpoint wrote: »

Come on most families have a blood is thicker than water attitude, especially as the sums are relatively small. Are we sure that lilac-lady has a "both must sign" situation.
A good old fashioned building society account with a pass-book is usually in the power of the person with the book.;)

PLEASE don't rely on a 'both must sign' = I learnt that was not the case the hard way.

It doesn't work in this internat age.

seven-day-weekend

I have several joint current accounts with my husband. They are different 'pots' that either of us can draw on.

I also have one with my son which we opened when we went to Spain and he came to live in our house. It was a simple way of dealing with all the household bills and expenses. The rent went into it and money came out of it for bills. I also put money into it if necessary for maintenance, etc.

This system has worked so well that he wants to continue with it even though he has now moved into his own flat. He wants me to be able to oversee his budgeting until he gets used to it. I have agreed.

I also had one with my mother, I classed the money as entirely hers as it was her money that fed it, (although actually, legally, half of it was mine) - the reason I was on it is so that I could draw money out if necessary as she could no longer do it. Upon her death I closed the account and gave the money to her executor (my b-i-l).