Credit cards during probate

antrobus

g6jns wrote: »

The beneficiary has no liability for the estate's debts. These are the sole responsibility of the executor(s). In practical terms the beneficiary might decide that doing so was the way to short cut the house being conveyed to them.

Read again. "If the only asset in the estate is a house and the estate has debts", then the house will have to be sold in order to enable the "executor(s)" to fulfill their "responsibility" to pay those debts. In those circumstances, then if the beneficiary wants to the house, they'll have to come up with the money.

antrobus

Mattygroves2 wrote: »

Very common for the executor to pay for liabilities of the estate before probate is granted- insurance, gas bills, electricity bills for the house before it is sold and also IHT if you want to avoid the interest charges. ....

Quite so. The question of 'precedence' (even if did apply) would not be relevant to an executor who was spending their own money.

g6jns_2

antrobus wrote: »

Read again. "If the only asset in the estate is a house and the estate has debts", then the house will have to be sold in order to enable the "executor(s)" to fulfill their "responsibility" to pay those debts. In those circumstances, then if the beneficiary wants to the house, they'll have to come up with the money.

Which is effectively exactly what I said. I am struggling to see what your point is.

g6jns_2

antrobus wrote: »

Quite so. The question of 'precedence' (even if did apply) would not be relevant to an executor who was spending their own money.

None of which seems relevant to the OP's case.

antrobus

g6jns wrote: »

Which is effectively exactly what I said. I am struggling to see what your point is.

No. that's what I said. So I'm struggling to see the point of your response, if you're now agreeing with what I said.

antrobus

g6jns wrote: »

None of which seems relevant to the OP's case.

What's not relevant to the OP's case? You're the one that said;

g6jns wrote: »

An executor should not do that. All debts should usually be treated the same way. None should be given precedence unless there are exceptional circumstances.

in response to this post;

Mattygroves2 wrote: »

Another option is for the executor to pay the balance and then reclaim from the estate once probate has been granted and the house sold.

So I think it only fair to point out that the question of 'precedence' would not be relevant to an executor who was spending their own money.

g6jns_2

The whole thread has degenerated into irrelevant side issues and generally muddying the waters. Surely the objective should be to help the OP not nit pick. Where there are no liquid assets then the executors should not dip into their own pockets to satisfy creditors of the estate unless there are some wholly exceptional circumstances. In the OP's case if a beneficiary particularly want to retain the property then on a pragmatic basis they could fund the deficit in the estate to do so. Even so that is up to them to arrange with the executor with appropriate safeguards to ensure the executor does not incur any liability. A prudent executor would probably involve an independent solicitor to oversee the process at the beneficiary's expense. This would not be a unique event but it is unusual.

getmore4less

There is nothing wrong with executors or beneficiaries using there own money to make the management of an estate simpler and cost of administering an estate lower when the estate is solvent but lacks cashflow.

It is the sensible thing to do.

g6jns_2

getmore4less wrote: »

There is nothing wrong with executors or beneficiaries using there own money to make the management of an estate simpler and cost of administering an estate lower when the estate is solvent but lacks cashflow.

It is the sensible thing to do.

You are forgetting an important point. It is not something to be done casually, or without appropriate safeguards. Executors are also trustees and they are subject to the law relating to trustees.

getmore4less

g6jns wrote: »

You are forgetting an important point. It is not something to be done casually, or without appropriate safeguards. Executors are also trustees and they are subject to the law relating to trustees.

No problem with the bills being paid and refunded from the estate or structure as a loan to the estate.

It really is this simple.