Selling an inherited house - unsecured debt? - scotland

Caleb11

No we just have a buyer. I contacted a solicitor yesterday an she said she would deal with the sale for me. I never mentioned the unsecured debt as I thought that it was unsecured so would die with my father. What does it mean to "officially apply to administer the estate?"

Caleb11

If its best not to act as exectutor what is my other option?

getmore4less

Debt don't die with someone they become part of the estate along with the assets.

What does it mean to "officially apply to administer the estate

You need to apply to the courts to get permission to administer the estate.
Not 100% sure ofthe process in scoland it's called confirmation and I understand you need a special bond.

http://www.scotland.gov.uk/Publications/2008/02/26152921/0


I don'tthink you can sell a hours untill you have done this.

getmore4less

Caleb11 wrote: »

If its best not to act as exectutor what is my other option?

Take legal advise.

You need to since you might have missed out some of the process and by doing what you have so far might mean you need to continue, the problem is you have paid out monies that should be recoverable but that could be more difficult if you don't continue.

The alternative action with a insovent estate(or one you will not benifit from) is to do nothing and let the creditors/benifitiaries sort it out.

You then have no liabilities to anyone in this case he family members that were owed money have an interest in trying to sort it out.


TAKE LEGAL ADVICE ASAP.

Caleb11

I have the confirmation and the bond of caution so yes I have applied to the court to administer the estate. Thank you I will phone solicitor after 9 o'clock. This has caused me 2 years of stress I really just want to see the back of it. I thought when I found a buyer that would be the beggining of the end.

getmore4less

Caleb11 wrote: »

I have the confirmation and the bond of caution so yes I have applied to the court to administer the estate. Thank you I will phone solicitor after 9 o'clock. This has caused me 2 years of stress I really just want to see the back of it. I thought when I found a buyer that would be the beggining of the end.

OK, I think one option is to check if the solicitors dealing with the house sale also have expertese with estates.

See if they can deal with the house sale and recover your costs so far.

Chances are there will be nothing/little left for the creditors and that will be the end of it.


It's a tough time hopefully this can get resolved so you can move on putting this behind you.

googler

Ignore references to 'administering' the estate as that applies to E&W

It sounds like you have received Confimation of the estate from the local Sheriff Court, and that in order to get this, you got a Bond of Caution from either Sun Alliance or Zurich, the combination of these two resulting in you being the Executor Dative. Yes?

Are there any assets in the estate apart from the house? Is there much money in the estate? Have you been keeping an accurate log of what you've spent as an Executor Dative?

When you registered the death, did the registrar give to you, or direct you to, the Scottish Gov's booklet "What to do after a death in Scotland"?

This has a section dealing with debts claimed against the estate - the online version is here, and I quote;

"Debts are paid out of the dead person's estate. They must be settled before an executor can distribute any of the estate to beneficiaries. The executor must give six months for creditors to make claims for the person's debts before distributing the estate, otherwise the executor may be legally liable for unpaid debts. The executor should check gas, electricity and telephone accounts, any firm where the person had an account or a credit, hire purchase or rental agreement, and should normally advertise to invite creditors to make claims.

If the debts are greater than the assets of an estate, the executor should seek legal advice. There are complicated rules for paying out what assets there are to the various creditors.

Do not be rushed into parting with goods before taking legal advice. Hire purchase goods cannot be repossessed after a third of the purchase price has been paid, unless the creditor gets a court order."

googler

Caleb11 wrote: »

He owes family members £15k but we are going to use the £10k left over and make repayments for the other £5k. What is the process?

You may not be able to get the £10k, as the order in which creditors must be paid may result in others being paid before you.

googler

There's also a specified order of beneficiaries for an Intestate estate, one where the deceased died without a will - are you the sole beneficiary according to this estate, or are there others?

Note the rights of succession - you settle debts first, prior rights and legal rights as applicable, then if anything is left over, the remainder to the beneficiaries

googler

Caleb11 wrote: »

Do I pay these even if there is not a claim against the property? What about family do they have a right to the money?

Debts; the Gov booklet outlines that you must allow 6 months for creditors to make claims against the estate - but note that even if a creditor doesn't make a claim, that doesn't excuse you from paying them - if you're aware of the existence of a creditor, and what they're due - you pay them, even if they don't claim.

You should also be considering placing an advert inviting creditors to come forward.