Credit card balances after death

bouncydog1

From what you are saying, there was no life policy in place to pay out on your mother's death so your father is now liable for the whole mortgage on a property he owns 50% of.

This seems rather unfair and he may now feel that he should only pay 50% of the mortgage. I think your dad or your mother' executor if different needs to get some legal advice to see exactly what position that leaves your father in re: mortgage balance and also the credit card balances which due to the value the cc companies are unlikely to write off as there are assets availBle to settle them.

In addition by getting these issues resolved any issues that could arise after your dad dies will have been addressed. This should give him peace of mind.

bigadaj

lisyloo wrote: »

In my neck of then woods if there is someone over 65 living in the house then it cannot be used for care home fee assesements.
Not sure though whether these rules are local.

I thought that the fees would be rolled up in this situation, such athat the house couldn't be forced to be sold, but fees would be paid when it eventually was.

It may well vary across the country though, and my comments could be out of date.

Tixy

WillyWonga wrote: »

Thanks all for your info.

Its a case now for the credit card companies. Looking at the finances my dad now only has the basic state pension. There were no insurance policies, life cover, savings etc. Nothing of any value. Paying the standard bills including the mortgage will leave him with not much left a month.

Estate wise there is only the house, which my dad has a 50% share and I can't see a court forcing a sale.

The issue isn't that the court will force a sale, it is how the executor(s) of the Will will settle the outstanding debts of the solvent estate, which they are required to do.

lisyloo

bigadaj - Try age concern factsheet 38
http://www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS38_Treatment_of_property_in_the_means-test_for_permanent_care_home_provision_fcs.pdf?dtrk=true

It says on page 6 that the value of your former home is disregarded if your partner still lives there (and other scenarios as well).

Of course this doesn't deal with the surviving partner going into care.

lisyloo

it is how the executor(s) of the Will will settle the outstanding debts of the solvent estate, which they are required to do

Can you give us any clue what normally happens?
Do the executor HAVE to force the sale of the house? How would they do that in practice? Get a court order?

Tixy

lisyloo wrote: »

Can you give us any clue what normally happens?
Do the executor HAVE to force the sale of the house? How would they do that in practice? Get a court order?

I don't know. I know the advice is that the beneficiaries and/or other homeowner negotiates with the creditors to avoid the property being sold.
E.g. from http://www.bdl.org.uk/images/21_EW_NDL_what%20to%20do%20about%20debts%20when%20someone%20dies.pdf

Tenants in common
[FONT=Gill Sans MT,Gill Sans][FONT=Gill Sans MT,Gill Sans]In this case, if there are debts, then the deceased person’s share of the house would be used to pay off the debts. [/FONT][/FONT]

[FONT=Gill Sans MT,Gill Sans][FONT=Gill Sans MT,Gill Sans]After the debts are paid, the person’s share of the house goes to whoever they left it to in a will. If there is no will, then there are set rules for who will be treated as the next of kin and inherit the estate. [/FONT][/FONT]

[FONT=Gill Sans MT,Gill Sans][FONT=Gill Sans MT,Gill Sans]Warning[/FONT][FONT=Gill Sans MT,Gill Sans][FONT=Gill Sans MT,Gill Sans][FONT=Gill Sans MT,Gill Sans]It is very important that the surviving owner negotiates with the creditors to make arrangements to pay the debt back to avoid the house being sold. [/FONT][/FONT][/FONT][/FONT]

I don't know what happens in practice which is why I suggested the OP posts on the Deaths, Funerals & Probate section as hopefully people there will be more knowledgeable.

lisyloo

Thanks, I've learnt some things.