Bereavement of sole parent - U18 child

g6jns_2

sleepless_saver wrote: »

Just a couple of thoughts to add to the excellent advice you've had.

The executor might want to contact one of the debt charities like Stepchange for advice. http://www.stepchange.org/Debtinformationandadvice/Lifechanges/Bereavement.aspx
Normally creditors won't write debt off when there is an estate that can pay but it will be worth finding out from Stepchange or National Debtline if there is any chance of them doing that on compassionate grounds in this case.

Any life insurance policies which could go towards paying off debt?

From what the OP said the estate is likely to be insolvent. In such circumstances it is very unwise to get involved in the estate in any way.

Mojisola

g6jns wrote: »

From what the OP said the estate is likely to be insolvent. In such circumstances it is very unwise to get involved in the estate in any way.

That's the normal advice for an intestate estate, but for the sake of the 17 year old, someone in the family should in this case.

g6jns_2

Mojisola wrote: »

That's the normal advice for an intestate estate, but for the sake of the 17 year old, someone in the family should in this case.

Just curious how meddling in the estate will actually help her?

arbroath_lass

g6jns wrote: »

Just curious how meddling in the estate will actually help her?

Instead of just warning the OP to "stay away" who do you suggest deals with it?

Mojisola

g6jns wrote: »

Just curious how meddling in the estate will actually help her?

Not meddling - but getting the whole estate settled.

It would be very unkind to leave a 17 year old alone in a house faced with demands for debts to be paid. If one of the companies who are owed money took on the estate, they wouldn't care about her well-being or whether she ended up homeless.

g6jns_2

Mojisola wrote: »

Not meddling - but getting the whole estate settled.

It would be very unkind to leave a 17 year old alone in a house faced with demands for debts to be paid. If one of the companies who are owed money took on the estate, they wouldn't care about her well-being or whether she ended up homeless.

Meddling in an estate is a technical term. Anyone who does so can end up being personally liable for the consequences. The interests of the daughter can be adequately safeguarded without the need to get involved with the debtors. There is no chance of her becoming homeless as a result.

Mojisola

sjet926 wrote: »

Unfortunately the house is the only estate. No life policies, insurance, cash etc. However, there are however, significant debts against the deceased.

g6jns wrote: »

Meddling in an estate is a technical term. Anyone who does so can end up being personally liable for the consequences. The interests of the daughter can be adequately safeguarded without the need to get involved with the debtors. There is no chance of her becoming homeless as a result. This link tells you more.

http://www.bmsolicitors.ie/wills-and-probate/probate/insolvent-estates/

Thank you - grandmother and eggs comes to mind.

sjet926 doesn't suggest that the debts are more than the value of the house.

nom_de_plume

Mojisola wrote: »

sjet926 doesn't suggest that the debts are more than the value of the house.

Exactly this. Without some hard facts it's nigh on impossible to make constructive suggestions. The significant debts could be many 10's of thousands but the property could be mortgage free and worth £1M. Conversely it could be in negative equity with credit card debts to boot. Without some rough detail everything is pure speculation.

dzug1

g6jns wrote: »

Meddling in an estate is a technical term. Anyone who does so can end up being personally liable for the consequences. The interests of the daughter can be adequately safeguarded without the need to get involved with the debtors. There is no chance of her becoming homeless as a result. This link tells you more.

http://www.bmsolicitors.ie/wills-and-probate/probate/insolvent-estates/

That's an Irish website which may not correctly reflect the situation in the UK

TBagpuss

OP, I'm sorry for your loss.

Are the debts likely to be more than the equity in the house? If so, then the estate may be insolvent and it may be better if neither you, no your niece, take any steps about administering the estate as this could lead to personal liability if the rules are not follwoed exactly. (see here : http://www.bereavementadvice.org/probate-and-other-legal-procedures/insolventestates.php )

Assuming that the equity is enough to pay the debts then you can go ahead and apply for probate (assuming that you are the named executor) but unless your sister had assets other than the house it is likely that the house will need to be sold to pay the debts etc.

Your niece may not be able to keep the house in that case. If your sister had an life insurance then that may be enough to pay off the debts.

Alternatively, you may be able to delay any sale of the house for a short time so your niece does not have to move out immediately.

Your niece should immediately look at what benefits she is entitled to in her own right.

She may also find it helpful to contact organisations with experience in working with children and teens who lose a parent - perhaps http://www.cruse.org.uk/bereavement-services or http://www.griefencounter.org.uk/teen-zone/