Help with credit card debt

TonyaWalker

Hello,

I need a bit of info on a credit card debt. My father passed away in January, he had a £9000 credit card debt with Natwest which goes back around 7 years, the only assets he had at all are 2 small life insurance policies which will cover the debts but will leave very little in inheritence after all is paid. I understand if the debt can be covered by the estate (the insurance polices in this case) that the CC debt will have to be paid out of that and anything left would be inherited. Does anyone have experience of luck in the past of getting the CC debt at least reduced? The debt has been paid once over in interest in the past 7 years... is there an appeal process or anything else that can be inquired into?

Thanks very much, appreciate any info..

wwl

Might be worth hinting that if there won't be anything left, why would anyone bother administering the estate, in which case they'd either get nothing, or have to do some work to get anything, whearas if they agreed a lower sum they'd get it straight away.

Savvy_Sue

Did the insurance policies pass 'in trust', ie outside the estate, or are they definitely included within it?

RAS

When you say 7 years ago, has he been paying the money off over that time?

Or could it be statute barred?

TonyaWalker

Hi everyone,

Thanks very much for replying.

Yes the card has been steadily paid or (and re-spent on) over the past 7 years.

Just to clarify, I assumed the life insurance policies formed part of the estate? There isnt any savings or property or even a car, it is literally just those 2 life insurance policies left to cover funeral costs and the credit card and after that very small amount to be shared between myself and my sister...

Sorry I'm not sure if the insurance policies passed 'in trust', ie outside the estate, or if they are definitely included within it? How can I find this out?

RAS

Were the insurance policy to be paid to named beneficiaries, was their a nomination form? Ask the insurance provider.

TonyaWalker

Thanks for the replies. We will get through to the insurance company tomorrow and check the policy to see if the policies were held in trust or not... If they were not held in trust, are the Natwest legally entitled to take the credit card debt from the life insurance?

Thanks,

Keep_pedalling

TonyaWalker wrote: »

Thanks for the replies. We will get through to the insurance company tomorrow and check the policy to see if the policies were held in trust or not... If they were not held in trust, are the Natwest legally entitled to take the credit card debt from the life insurance?

Thanks,

If the estate contains enough assets to meet the funeral cost and the CC debt then legally the executor is obliged to pay those debts before anything is distributed to beneficiaries.

FreeBear

Was there any PPI on the credit card - If so, pursue it and get the outstanding balance cleared by the insurance.

g6jns_2

You may be, quite understandably, confusing the use of the word trust. The insurance policy may be payable to a separate beneficiary rather than the estate. If so it would seem that the estate is insolvent and you must not try and administer it. If there is no money for the funeral then the local authority must pay for it or the hospital if the deceased died there. You have no legal obligation to pay yourself. Come back when you know the answer from the insurer. The bank can only offset against bank accounts.

HappyMJ

g6jns wrote: »

You may be, quite understandably, confusing the use of the word trust. The insurance policy may be payable to a separate beneficiary rather than the estate. If so it would seem that the estate is insolvent and you must not try and administer it. If there is no money for the funeral then the local authority must pay for it or the hospital if the deceased died there. You have no legal obligation to pay yourself. Come back when you know the answer from the insurer. The bank can only offset against bank accounts.

He died in January. I would say with some certainty he's been buried or cremated by now.