Debts after death

stulaunch

What about the caravan loan company's offer to put caravan in MIL's name if she carries on paying installments, could they do that without administration as they technically own the caravan? If so would that have any consequences to the other debtors should they make a claim?
Due to certain reasons neither me or wife are willing to be administrators and Mil is definitely not capable.
Thanks

AMILLIONDOLLARS

If the debt of both the £260 and the credit cards are solely in FIL name then those companies will have to put in a claim against his estate. They cannot demand payment as your MIL is not responsible for them. Get Citizen Advice to look at it for you.

I would not be happy for the Caravan debt to be transferred into MIL's name, then she really will become responsible.

Technically this is not her property or responsibility to sell as it soley belong to her husband's estate. They like the others above they will have to wait until Administration has been granted before they can get their money. The Caravan company are looking out for their own interest in getting their money back. They must wait until Administration.

Do not be forced into doing something that will have long reaching affects. If she won't go to CAB then you and your wife should go. Maybe Age Concern, here is another possibility

https://www.moneyadviceservice.org.uk/en/articles/where-to-go-to-get-free-debt-advice

https://www.moneyadviceservice.org.uk/en/articles/dealing-with-the-debts-of-someone-who-has-died

AMD

madbadrob

Stu,

Whilst they own the caravan technically it is still part of the estate. I would suggest telling your MIL to seek legal advice before doing anything

Rob

getmore4less

The way i see this
the caravan belongs to the finance.

they can transfer ownership for whatever amount they want.

any claim by other creditors would be against the finance company for not getting the best price.

any creditor can take on admin if no one else bothers.

John_Pierpoint

BBC Radio 4 "Moneybox" today featured a story of the parents of a dead woman,. being pestered to meet her debts.
We have also had a thread on here featuring an executor being pestered, because the interests of a charity clash with the interests of any normal tax paying beneficiary of a will.

Needless to say, when the BBC becomes involved, the phone company and the bank involved, not to mention the debt collectors, all became very polite and conciliatory.

[I must confess, I tend towards the "If you cannot cope with the heat keep out of the kitchen" attitude]

http://www.bbc.co.uk/programmes/b03g89c2

stulaunch

One more quick question on this, is I could?


None of the debtors as yet has come forward to take on administration of this estate. We sent letters to all debtors saying. "There is no will, if you would like to become administator please feel free to do so" or words to that effect.


The finance company took back the caravan, they said it belonged to them and they could do that. That debt was settled with a bit left over.
This was put into an account just in case anyone took up administration.
So far we've only had a letter back from one, who are owed around £260 asking what were the administrators doing as regards there money. Strange thing was, they got they spelling of the name of the deceased completely wrong, but not offering to take administration. Doubt they would take it on for the money they are owed.
Nothing at all heard from the biggest debtor £2600


Question I want to ask is How long would you leave money in this account before taking it out?


MIL could do with it now really. But I keep saying wait.

madbadrob

Is the estate insolvent? In other words will there be debts left after the money is gone? If no then do the admin yourself and pay off the debts. If Yes then your MIL cant have any of the money anyway and I would just leave it there and not touch it. If after 12 years there is no claim I believe although you would need to check that the whole estate would revert to the MIL

Rob

Mojisola

stulaunch wrote: »

Question I want to ask is How long would you leave money in this account before taking it out?

MIL could do with it now really. But I keep saying wait.

While there are unpaid debts adding up to more than that cash, there isn't any inheritance to be had.

getmore4less

Unless the caravan was a join asset(I can't remember this is an old thread I remember the debt being sole)
the finance company should have only given the money to the administrator or with a relevant indemnity.

any funeral expenses not paid from the estate?

valk_scot

stulaunch wrote: »

Question I want to ask is How long would you leave money in this account before taking it out?


MIL could do with it now really. But I keep saying wait.

It's not her money to take out, unfortunately. It needs to be kept there to settle the other debts then she can have any that's left over once the debts are discharged. If none of the companies offer to take up the administration of the estate then the money has to be left in the account for twelve years jus in case. If no-one claims it by then your mother will inherit it then.


Now depending on how much is there, there's several ways you can go. You can use the money to repay the debts and MIL can have any left over, if no other debts are discovered. If there's not enough money to repay the debts in full then you can approach both companies with a pro rata offer of whatever % the estate can cover, in full or final settlement of the debts. You can leave the money in the bank and hope the debtors go away and stop hassling you. Or you can take it out and give it to MIL, but this is technically defrauding the estate and both you anf MIL could end up in a whole heap of trouble with the law if one of the debtors does take on administration and discovers the money has been taken.


I'd go for one or other of the first two options if I were you, and get the matter closed. It's not like they're asking for anything that doesn't belong to them after all, the money is their's.