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Overdraft debt and death

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Comments

  • Mojisola
    Mojisola Posts: 35,571 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    danerin wrote: »
    Does anyone know if a wake afterwards could be considered as part of the funeral costs? I keep finding different views as to what can be accounted for.

    It does for IHT purposes but I don't think you can assume that when there are debts on the estate.
  • paragon909
    paragon909 Posts: 1,498 Forumite
    Show the bank the death certificate to prove death, The only thing they can do is write the debt off they cant pass it on to you or anyone else.
  • PeacefulWaters
    PeacefulWaters Posts: 8,495 Forumite
    edited 12 April 2015 at 1:40PM
    Mojisola wrote: »
    It does for IHT purposes but I don't think you can assume that when there are debts on the estate.
    IHT is calculated on the net value of the estate - after the wake.

    I don't see why this is any different.
    paragon909 wrote: »
    Show the bank the death certificate to prove death, The only thing they can do is write the debt off they cant pass it on to you or anyone else.
    Just because somebody dies doesn't mean the debt gets written off.

    If there are other assets in the estate the bank may recover some or all of the debt.
  • paragon909
    paragon909 Posts: 1,498 Forumite
    PeacefulWaters wrote: »
    IHT is calculated on the net value of the estate - after the wake.

    I don't see why this is any different.

    Just because somebody dies doesn't mean the debt gets written off.

    If there are other assets in the estate the bank may recover some or all of the debt.

    http://www.nidirect.gov.uk/what-happens-to-debts-when-someone-dies

    Think this website explains it in good context,

    When someone dies, debts they leave are paid out of their 'estate' (money and property they leave behind). You're only responsible for their debts if you had a joint loan or agreement or provided a loan guarantee - you aren't automatically responsible for a husband's, wife's or civil partner's debts.
  • agrinnall
    agrinnall Posts: 23,344 Forumite
    10,000 Posts Combo Breaker
    paragon909 wrote: »
    http://www.nidirect.gov.uk/what-happens-to-debts-when-someone-dies

    Think this website explains it in good context,

    Yes, and if the insurance payout forms part of the estate then the holder of the debt will have a claim on the estate after funeral expenses are paid, exactly as Peaceful said.
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