Mother died with debt and no estate. Help needed

Mojisola

heatherw_01 wrote: »

I haven't decided about my estate. I am only 32 and honestly haven't thought about it

I work with teenagers so they can't help and none of my friends can help either

Told people and people said they would help if they could but they haven't got a clue either

If you don't have any individuals that you want to leave your own estate to, think about a charity that you would like to help.

rosyw

Firstly, I am so sorry for you loss, condolences to you.
Please don't worry about the debts for now, they can wait. I would suggest that once you have the death certificate and can arrange the funeral have a word with the bank to see if they will accept the insurance money being paid in. Once you know the cost of the funeral you can work out what to do. If the insurances that say the money is part of the estate, together with what is in the bank will cover the funeral expenses, then get those [paid into the bank and ask the bank to settle the bill from the account. If you can get the other insurance paid directly to you then do so, you will have some expenses that need to be covered, copies of the death certificate, postage etc., and you can pay for all that with the insurance money.
When and if you can face it, go through your mum's paperwork to see if there was insurance on any of the cards that will cover what's owed in the event of her death, you DON'T have to deal with any of this as others have said. Don't give anyone else your address as previously advised, YOU are not responsible for clearing the debts, and don't let anyone tell you otherwise!
I would get the funeral over before doing anything else, people will have to wait, don't feel pressured to sort it out, you need time to come to terms with the loss of your mum. When I lost my OH a few years ago I felt I had to deal with everything straight away, it was a big mistake as it just made matters worse by having the pressure of creditors chasing for money even before the funeral.
If you feel you can't deal with it, then don't! the most important thing to do at this point in time is to look after yourself, the creditors will look after themselves, they always do!

heatherw_01

Citizens advice were no help.

They were obviously reading from the website and couldn't advise. I also asked about saying to the creditors that I was not managing the estate and should I just send death certificates off with a letter saying I am not managing the estate but they said they don't know and they would have thought I would have to pay off the creditors rather than just leave it. Phoning debt advice line now as they suggested. Really thought CAB could help

2 of the insurers said they thought the money would not be part of the estate as they don't need a probate but they weren't sure. I asked CAB and they said the money would be part of the estate. So I am stuck! The national debtline also said it would be part of the estate.

National debtline said I should send a letter with the death certificate to each one with a cover letter saying that she had a few life insurance policies which will cover the funeral and not leave much left. Would you consider writing off the debt. Obviously if I do that, I would have to give my address I guess for them to write back?

getmore4less

heatherw_01 wrote: »

Citizens advice were no help

They were obviously reading from the website and couldn't advise. I also asked about saying to the creditors that I was not managing the estate and should I just send death certificates off with a letter saying I am not managing the estate but they said they don't know and they would have thought I would have to pay off the creditors rather than just leave it. Phoning debt advice line now as they suggested. Really thought CAB could help

Forget can if they are saying things like this or ask to speak to a psecialist

2 of the insurers said they thought the money would not be part of the estate as they don't need a probate but they weren't sure. I asked CAB and they said the money would be part of the estate. So I am stuck! Is it or isn't it?

Again you are talking to people that don't know what they are talking about, just because they will release money without probate does not determine it's status.

Do you have any of the paperwork for these policies, normaly for insurance and pensions you have to nominate a benifitiary if you don't want it to be part of the estate.

I would try the insurers again, or wait and see if someone from the debt line is familiar with estates.

heatherw_01

getmore4less wrote: »

Again you are talking to people that don't know what they are talking about, just because they will release money without probate does not determine it's status.

Do you have any of the paperwork for these policies, normaly for insurance and pensions you have to nominate a benifitiary if you don't want it to be part of the estate.

I would try the insurers again, or wait and see if someone from the debt line is familiar with estates.

I edited my post before you replied as I called someone else.

I know I am speaking to people who don't know what they are talking about that's why I said citizens advice were no help.

Called the insurers already twice. They said they think it is not part of the estate. They don't seem to know as this is a legal thing.

Obviously I am not nominated as a beneficiary otherwise they wouldn't ask who they should make it out to.

The debtline you get put though to someone, you can't choose who you speak to. You tell an initial person what you are calling about and they put you through to someone.

duchy

heatherw_01 wrote: »

National debtline said I should send a letter with the death certificate to each one with a cover letter saying that she had a few life insurance policies which will cover the funeral and not leave much left. Would you consider writing off the debt. Obviously if I do that, I would have to give my address I guess for them to write back?

No give them the address of your Mum's flat and then go to the nearest sorting office and set up a mail redirect for all mail to the flat address in your Mum's name to be forwarded to your home address. You don't need to give them YOUR address .(You'll need to show the PO the death certificate to do this)

itsgazza_2

The same thing happened to me three years ago when my father in law died.

I'm not sure how far down the funeral/estate management you are but this is what I did

1 Contact a funeral director to find out how much the funeral will cost.

2 Contact her bank to inform them of the situation so that they freeze the account so no more Direct Debits or Standing orders are paid.

3 register the death and get copies of the Death Certificate certified at a local solicitors. (there will be a charge for this)

4 contact the life assurance companies as these policies pay out upon death and ensure there is enough money to cover the funeral

5 arrange the funeral with the available funds

6 Upon receipt of the certified copy of the death certificate the bank will release the funds to the funeral director upon receipt of invoice

7 .... Now , if I was you I would walk away .. if any creditors come calling I would give them the bank account details and a copy of the death certificate ..get them to deal with the bank directly.. this is what I did although my father in law had very little debt and very little cash .. You are not the executor nor are you liable for any debts resulting from any shortfall in your mums estate. Keep copies of everything though just in case. If you get hassled by creditors then go back to the CAB.

rpc

heatherw_01 wrote: »

Called the insurers already twice. They said they think it is not part of the estate. They don't seem to know as this is a legal thing.

It is a legal thing, but it is a legal thing that is set up with them and usually filled out on the application form. If not, they will have been sent another form later on to move the policy into a trust.

Unless you can find records of the insurance that detail if there was a trust, the only people that know are the insurers themselves. Try writing to them instead of calling if you aren't getting useful answers. They do know.

heatherw_01

rpc wrote: »

It is a legal thing, but it is a legal thing that is set up with them and usually filled out on the application form. If not, they will have been sent another form later on to move the policy into a trust.

Unless you can find records of the insurance that detail if there was a trust, the only people that know are the insurers themselves. Try writing to them instead of calling if you aren't getting useful answers. They do know.

I doubt the money would get moved into a trust. The over 50 plans just pay out the guaranteed lump sum at death

2 of the plans both seem to be by AXA

Plan 1: http://www.sunlifedirect.co.uk/Life-Cover/Over-50s-Life-Insurance/Guaranteed-Over-50-Plan/
Plan 2: http://www.phoenixlife.co.uk/new-products-select/new-products-II/over-50s-life-insurance.aspx

In AXA's terms on their website it says;
8) What about tax?
The amount paid on your death will normally
form part of your estate, so may be subject
to inheritance tax, unless you write your Plan
subject to an appropriate trust.

http://www.phoenix-sunlife.co.uk/phoenix_t_and_cs.pdf

So I am pretty sure they are part of the estate

Mojisola

heatherw_01 wrote: »

I also asked about saying to the creditors that I was not managing the estate and should I just send death certificates off with a letter saying I am not managing the estate but they said they don't know and they would have thought I would have to pay off the creditors rather than just leave it.

This is completely wrong. You should ask for these advisors either to have some training or stop giving advice about it.