Recently discovered debt of terminally ill parent

f0nz

I don't really know where to begin in all honesty. I will try and keep this as short and concise as possible but please bear with me as my head is like mush as our whole world has been turned around in under 3 weeks!

Approximately 3 weeks ago my dad started acting strangely, we eventually got him to the Drs, after a lot of uncertainty, tests and generally not knowing what the heck what going on he was diagnosed as having an inoperable brain tumor on Wednesday. Due to the position of the tumor it has affected his memory, speech, mobility and personality. Whilst he has improved he isn't and will never be 100%. We have been told he has months left rather than years. Before this he had been 100% capable of anything and everything.

My dad has always been the one to look after the bills and finances. My mum left him to it and didn't have a clue (still doesn't really) about any of it. Because of the illness and the fact he can no longer deal with the finances I have been helping mum try to get all details, log ins etc. Whilst doing so I have uncovered approximately £30k of credit card debt. Mum knew they had some but no idea at all about the magnitude of it. She had assumed it was around £3k. This has only been discovered today.

Main points:
Both in their late 60's
Dad gets state pension approx £661 4 weekly
Dad gets works pension approx £320 per month
Mum gets partial state pension of £320 4 weekly.
They have a reduction in council tax but I don't know how much by.
House is owned outright in mums name alone
All credit card debt is in dads name alone with mum as an authorised card user.
Have a joint account which is approx £350 overdrawn

From what I can see from statements, To manage the debt dad has been taking out cash advances on the cards to pay the minimum payment on the other cards. They cannot afford to service the credit cards. I have done a SOA and they can cover their basic expenses and that is it.

Could anyone advise me on the best course of action on how to deal with these debts please. Selling the house is not an option. I have discussed It with her but My mother is very stubborn and old fashioned and she will categorically never sell the house.

From what I can see from his direct debits my dad does have life assurance but I have no idea how much for. I'm going back to their house tomorrow so will look for his policy as I'm aware that in some cases depending on the policy it may pay out early if there is evidence of a terminal disease.

Any help at all would be hugely appreciated as I just can't seem to get my head around everything at the moment.

sourcrates

Hi,

So sorry for the situation you find yourself in.

Can I ask just a few questions, is your dads name on the house deeds ?
Are all the debts in just your dads name, or jointly with your mum ?

Lots of advice here :

https://www.moneyadviceservice.org.uk/en/articles/dealing-with-the-debts-of-someone-who-has-died

f0nz

sourcrates wrote: »

Hi,

So sorry for the situation you find yourself in.

Can I ask just a few questions, is your dads name on the house deeds ?
Are all the debts in just your dads name, or jointly with your mum ?

Lots of advice here :

https://www.moneyadviceservice.org.uk/en/articles/dealing-with-the-debts-of-someone-who-has-died

Hi and thank you.

Dad has never been on the deeds as far as I'm aware, the house was my grandparents (mothers parents) and it was transferred to my mother before both of them died.

As far as I can tell the debts, with the exception of the overdraft only, are solely in the name of my father.

f0nz

I did read that article earlier which clarified some things. I'm still unsure of what to do with regards to minimum payments etc. Do we still try to get them paid or do we just resign ourselves to the fact that they cannot be paid and that when dad passes they will be paid from his estate (hopefully) or do we offer affordable monthly payments ... ?

PasturesNew

Can't help - but immediately (tomorrow) apply for "Fast Track Attendance Allowance".... because it's a terminal diagnosis with a short lifespan he'll get £75/week or so. Every little helps.

sourcrates

f0nz wrote: »

Hi and thank you.

Dad has never been on the deeds as far as I'm aware, the house was my grandparents (mothers parents) and it was transferred to my mother before both of them died.

As far as I can tell the debts, with the exception of the overdraft only, are solely in the name of my father.

Ok, well that should mean the house will be safe at least.

Debts don't just disappear when someone dies, any outstanding debt will have to be paid out of the deceased's estate, if there is not enough to cover the entire debt, then you will be left with an insolvent estate, you would need to get expert advise on this, use the link in my post above for starters.

patman99

Whilst your dad is still alive, get him set up with either Payplan or Stepchange and get a DRO sorted. Costs £90 to do.
If the creditors agree to it, then the debts will be gone.

If they don't, well they don't have any chance of getting paid anyway as your dad seams to have nothing in his estate.

The house is your mums, so they are not able to go for that.

Ms_Chocaholic

sourcrates wrote: »

Ok, well that should mean the house will be safe at least.

Debts don't just disappear when someone dies, any outstanding debt will have to be paid out of the deceased's estate, if there is not enough to cover the entire debt, then you will be left with an insolvent estate, you would need to get expert advise on this, use the link in my post above for starters.

But if there's no estate then the creditors are stuffed.

f0nz

I perhaps should have mentioned that we live in Scotland.

I've just googled and we don't have DRO's here. The equivalent is a LILA bankruptcy which I don't think would be the right move... ?

From what I've read so far it seems that any debts owing will be paid with whatever money is left after funeral costs from his estate which is essence is purely his life assurance. If any debt is remaining (hopefully there won't be) then there's nowhere they can recover money from as he has no assets and it is all solely in his name.

-taff

Does he have insurance on his cards? Because this is one time where it would come in handy.

Miss_Poohs

If the house is in your mums name and was bequeathed to her by her parents and your dads debt is in his name and his name only and there is very little estate belonging to your dad, the creditors are well.... pretty much on to plums.
You can't get blood out of a stone.
I'm not sure about the insurance situation, which will need looking in to.
As you're in Scotland I'd be looking to speak with perhaps Welfare Rights, usually attached to your local authority, they are pretty good, and will try to advise you.
Is your dad still capable of making rational decisions? If so a Power of attorney might be worth a thought, but he has to be fully aware to sign one and they do take time to come into force....2-3 months sometimes.
The alternative I think is a Guardianship.
You've been put in a very difficult position, and I feel for you.
Take care