Intestacy, debt and other problems

worry_warrior_2

My oldest friend is in very poor health and not expected to last long, 51 yrs old, £90k in credit card debt, no assets of any kind except a private pension pot of £30k, 3 children in their 20s with their own families and expenses, he's unemployed and on sickness benefits and has no Will.
He's a lovely guy and was doing great up till 8 yrs ago when the health problems started, he lost his career and the debts mounted.
I am in no position to help him financially which he knows but I said I would ask the following as he doesnt have internet access.
If he was to die as a result of his health problems how would his estate be wound up? And by whom?
How would his funeral be funded and would it be a paupers funeral? Would the family have any say in this or be able to just provide a decent funeral without any further liability?
Would his children or remaining sister be liable for any expenses?
He reckons his debts will die with him. Is that correct?
What would happen to the property he owns at his rented flat?
Would he be able to appoint a solicitor as draw up a will and would they act as executor if there was nothing left to pay their fees?
He has named his children as next of kin on his pension. Would they get anything from that or could the estate claim it as theirs?
Any advice would help,

g6jns_2

worry_warrior wrote: »

My oldest friend is in very poor health and not expected to last long, 51 yrs old, £90k in credit card debt, no assets of any kind except a private pension pot of £30k, 3 children in their 20s with their own families and expenses, he's unemployed and on sickness benefits and has no Will.
He's a lovely guy and was doing great up till 8 yrs ago when the health problems started, he lost his career and the debts mounted.
I am in no position to help him financially which he knows but I said I would ask the following as he doesnt have internet access.
If he was to die as a result of his health problems how would his estate be wound up? And by whom?
How would his funeral be funded and would it be a paupers funeral? Would the family have any say in this or be able to just provide a decent funeral without any further liability?
Would his children or remaining sister be liable for any expenses?
He reckons his debts will die with him. Is that correct?
What would happen to the property he owns at his rented flat?
Would he be able to appoint a solicitor as draw up a will and would they act as executor if there was nothing left to pay their fees?
He has named his children as next of kin on his pension. Would they get anything from that or could the estate claim it as theirs?
Any advice would help,

If their is no money to pay for a funeral then the local authority will pay for a basic, no frills, funeral usually with cremation. There is no obligation on anybody else to pay. The credit card debt will not die with him. From what you say the estate will be seriously insolvent. You, and the family should leave well alone and let the creditors deal with it. Any belongings will form part of the estate. There seems little point him making a will as n o solicitor will be likely to take on the job unless they will be paid. It might be kinder not to tell him the unpleasant details. As for the pension I suspect that will cease upon death unless there is a widows pension provision.

Mojisola

worry_warrior wrote: »

What would happen to the property he owns at his rented flat?

If there are things that he would like his children to have, he should give them away now.

worry_warrior_2

g6jns, thanks but what will happen to the credit card debts? The thing I was most certain of was that they would die with him.

theoretica

As he has not yet reached pension age many, or most, will give something to the named next of kin without going through the estate.

If his children wish to arrange a funeral they can do so with no need to pay for his debts too or do any further organising.

Mojisola

worry_warrior wrote: »

g6jns, thanks but what will happen to the credit card debts? The thing I was most certain of was that they would die with him.

If there is nothing in his estate, none of the debts can be paid.

theoretica

worry_warrior wrote: »

g6jns, thanks but what will happen to the credit card debts? The thing I was most certain of was that they would die with him.

It doesn't 'die' but also isn't transfered to his children. So you get the card companies clamouring for their 90k from the estate, even if all that is is his DVD collection and furnishings - this is why it is advised not to start dealing with an insolvent estate, leave them to sort it out. His children have better things to do than try to divide what little there is up legally, with the risk of being held to account if they do it wrong.

worry_warrior_2

Thanks to all but does the Crown appoint a solicitor to wind up the estate?

Mojisola

worry_warrior wrote: »

Thanks to all but does the Crown appoint a solicitor to wind up the estate?

No. There's no money in the estate to pay for anyone to do the work.

g6jns_2

worry_warrior wrote: »

g6jns, thanks but what will happen to the credit card debts? The thing I was most certain of was that they would die with him.

This seems to have become an urban myth. The credit card company may try to recover some of the money but as the estate is insolvent it is important to just leave them to sort it out. There is nothing to stop the children paying for the funeral but they have no legal obligation to do so. It might be kinder to let your friend die in ignorance of the facts.

getmore4less

He could gift/sell everything now.

Even if he doesn't the contents can be removed for save keeping to avoid them getting dumped by the property owner.

Good practice to make an inventory.

Probably a good idea for someone to be ready to do the registration.

As has been said a funeral can be arranged and paid for.
(this will probably use up any value in the contents)

Worth checking with the pension fund they will pay out outside the estate.

Also worth going through the various pages on the web for background
These searches bring up some relevant stuff.
What to do when someone dies
What not to do when someone dies
Insolvent estates

Another term that crops up is "intermeddling" something to be avoided.

Look up the local policy on public heath funerals(some are not happy with the removal of property for safe keeping) if funding a funeral will be an issue.

With an estate with no assets often best to not get involved.

Some prefer to notify any creditors of the death(get a few copies of the certificate when registering) which can help cut off the communications as many will chase for a while others prefer to ignore.