Mother passed last week, help needed please

bluemonkeymagic

Hi board,

Was hoping to reach out to the board for some assistance, it's been an unbelievable tough week and I am at my wits end with worry to add to my grieving.

My mother passed away last Wednesday, although she was very ill it was unexpected. She was 69 and a pensioner.

She didn't own her house but left some unpaid debts;

Halifax Credit Card - £6k balance
Halifax Loan - £500 balance
Littlewoods catalogue - £140

When mum started people poorly she wanted to be able to pay for her own funeral so she took out a plan with Phoenix Life and they have said that she should receive £4k from the policy which was always to cover funeral expenses. Anything left over she wanted to go to her grandsons. She knew it wouldn't be that much.

She also received £60 a month through a private pension, I have spoken to them and they said they'll send a pack in the post but it may be switched to a widowers pension for my dad.

My worries are that Halifax reckon that they'll try and re-coop the balance of the credit card and loan. As a family, we do not have the money and out of principle, the money mum left in her policy was meant for her funeral.

I have spoken to Phoenix Life and they said that the money will be sent to my dad and that Halifax shouldn't have any right over that money. Is that correct?

Also, what right would they have other the pension? If we switched it to a widowers pension?

Just trying to get a better grasp on matters as its worrying me so much and I can barely cope with the loss let alone banks chasing money.

Thank you

getmore4less

Sorry for your loss

If the debts are in the sole name then the estate is responsible and they do not get inherited.

First off don't worry you can take your time, there is no rush.
IN the first instance you just notify the creditor that the person has passed.

if she a joint account with halifax it may be a good idea to empty that first, they may try to grab the money.


There are some guidlines for dealing with insolvent estates(see below) which usualy mean do very little other than pay for the funeral and advise the creditors that the person has deceased and there are no assets**.

This is often sufficient to get them to right of the debts, they may come back with a request for the inventory of the estate, you have no obligation to provide this unless you decide to administer the estate which is usualy not recomended.
Don't pay anything other than funeral expences

The funeral policy may be outside the estate check with the providor.

** personal assets can be an issue if she had anything of value this may change the recomended procedure.

SOme links, google more.
http://www.step.org/insolvent-estates
http://www.bereavementadvice.org/probate-and-other-legal-procedures/insolventestates.php
http://www.hmrc.gov.uk/manuals/insmanual/ins1703.htm

bluemonkeymagic

Thank you for your message.

I have let all of Mum's accounts know that she has passed and most are writing to me with further details.

We went to see the Funeral Director yesterday and once that is paid then that will leave only a few hundred pound left in Mum's "estate"

How will the Halifax proceed? If I say there is no estate how will they be and what will they ask? I am just trying to pre-empt the next stage.

Thank you

Saltwater_2

If someone dies without leaving enough assets to cover their debts then the balance of the debts dies with them. Double check they are in your mum's sole name.

The halifax may ask to see a Schedule of Assets and Liaibilites, this is just a list of all her assets and all her debts. They may want this backed up with copy bank statments etc.

They can technically go after any joint assets she had with your father but it is very rare for debts of this size, it isn't worth the hassle to them. They can ask you to sell any assets your mum had in her sole name to offset against the debts.

Funeral expenses are first in the list of priorities for debts being paid when someone dies so they can't go after that money.

Halifax don't rank any higher than than Littlewoods so if they want some money repaid point get them reduce the sum to account for Littlewood's share as well.

hcb42

Sorry for your loss.

Just a note on the life policy, if there is money left over and it sounds like there might be, then after the funeral costs have been met then the debts should be paid or part repaid, so you could in fact pay a small way towards one of them

getmore4less

hcb42 wrote: »

Sorry for your loss.

Just a note on the life policy, if there is money left over and it sounds like there might be, then after the funeral costs have been met then the debts should be paid or part repaid, so you could in fact pay a small way towards one of them

That would depend on the policy.

also once you start to pay anyone(other than the funeral) you have intermeddled so have to take on the full estate.

There is another thread with a similar problem

madbadrob

hcb42 wrote: »

Sorry for your loss.

Just a note on the life policy, if there is money left over and it sounds like there might be, then after the funeral costs have been met then the debts should be paid or part repaid, so you could in fact pay a small way towards one of them

Actually no they need to work out the total debt what each debt percentage wise is to the total and then they have to pay whatever money is left in those percentages to all companies
ROb

rosyw

It really does depend on the policy. When I lost my husband I was told by our solicitor that if the policy stated that on his death the money should be paid to ME, then it was my money and did not belong to the estate. So - if the policy stated the money was to be paid to your dad, it's his to do with as he wishes and creditors have no claim to it.

getmore4less

madbadrob wrote: »

Actually no they need to work out the total debt what each debt percentage wise is to the total and then they have to pay whatever money is left in those percentages to all companies
ROb

They don't have to do anything if they don't want to administer the estate.

bluemonkeymagic

What do you mean don't want to? We can't just ignore the debt can we? I spoke to the citizens advice and they said we have no choice but to spilt the remaining money from the policy between the Halifax and little woods on a pro rata basis

madbadrob

bluemonkeymagic wrote: »

What do you mean don't want to? We can't just ignore the debt can we? I spoke to the citizens advice and they said we have no choice but to spilt the remaining money from the policy between the Halifax and little woods on a pro rata basis

CAB are correct based on the information you have provided here but so is getmore4less. Even though you are the family of the deceased there is no legal requirement for you to administer his estate if you dont want to. You should inform all the debtors of the passing and they will try and pressurise you to pay the money owed. Tell them that you are not administering the estate and that you are not liable for the debts. These debts will die with the deceased once the estate as no money left in it. If you so much as pay any money to any debt you have intermeddled and become the administrator of the estate but even then you are not liable for the debts.

If you wish to intermeddle you need to work out total debts then work out what percentage each debt is of the total debt and the money left should be paid out based on those percentages as the CAB stated

Rob