Is there a timeframe companies have for collecting monies from a Deceased's Estate?

blinx

I have looked on the Forum already but can't find this, so please forgive any duplicity (if my topic has already been covered).

My question is this:

When someone dies and they have an Estate (property) and they leave behind Credit Cards debts etc - is there a certain amount of time that credit card companies etc who are owed money can pursue their debt (as part of the Estate), i.e., is it for 6 or 12 years? (or is the time period indefinite?).

I am NOT referring to having a 'Charge' on the property, I mean if the Deceased had Debts like those above, i.e., that companies were owed money by them but if they died do those Creditors/companies only have a certain amount of time (years) in which to claim it from the Estate?

Thanks in advance.

madbadrob

The debt can stay for ever but comes off the credit history after 6 years. I usually assume then they will chase whilst its on the credit file but if there is money in the estate or property that can be sold then the executor is duty bound to sell any property to pay the debt or use the cash etc

Rob

getmore4less

normal time barring rules apply but administrator negligence last for longer

a section 27 can help for unknown debts

Just ignoring known ones is not a good idea.

Mojisola

getmore4less wrote: »

normal time barring rules apply but administrator negligence last for longer

a section 27 can help for unknown debts

Just ignoring known ones is not a good idea.

If the executor knows about debts (or doesn't make reasonable efforts to find out if there are any debts) and winds up the estate without paying them, he/she would be personally liable.

madbadrob

http://www.cleardebt.co.uk/debt-advice/downloadable-debt-help-guides/out-of-date-debt/

Is a good overview

Rob

blinx

Thank you for the replies everyone.

Its actually a bit of an usual situation, a friend of mine has found out that her sister lied to her about their other sister’s Will, i.e., told her that their late sister had made a Will out to her AFTER their sister (that died) had made a Will to my friend. However as I said my friend has just found out that she lied and the sister that died had not made a Will out to her at all. She’s also discovered the property her late sister owned is still in registered with the Land Registry in her late sister’s name.

My friend has the Original Will in which she is the sole beneficiary and she is thinking of taking it to Probate but she is worried/concerned that the sister who died had addiction/mental health problems towards the end of her life and as far as she can recall had encountered Debt problems before her death – I say as far as she can recall as her sister died 25 years ago – so its quite a while back (more than the 6 years referred to).

I said I would try and find out for her either via here or go to the Citizens Advice, but looks like a lot of good replies that I didn’t find on my own internet search so thanks again everyone… its helped, I think! ;p --- (so much to get our heads round as she’s only just found out recently, after all these years!).

p.s. Executors are named on the Will as the Solicitors.

getmore4less

This will need a bit of research to unravel what has happened in the intervening years to formulate plan of action.

Was a grant taken out at the time.
Did the house have a mortgage.
What has happened to the house.
If there were debts how did they get fobbed off or were they paid off.
What other assets were there bank accounts etc.
Is the will in the hands of friend really the latest one.

There is a good chance there are very few records left.

How much was the house worth?
How much is it worth now?

I would probably take independent advice (not the solicitors in the will) to see if any adverse possession of the house after 25 years would apply where there was deception.

madbadrob

You also have to consider whether a will was presented at the time and if so you need a copy of that. Then you need to ask the question as to whether that will was indeed valid or not. I would first of all get a search of the probate registry to see if there was a will or admin granted.

As Getmore states you also have to ask what has happened in the intervening years especially with the house. Without probate the house cannot be sold or the names on the deeds transferred legally.

This could well open up a can or worms that may not be in your friends best interest

Rob