mum passed

debtfree1day

Hello


My mum passed at the end of last week, and I have finally got round to take some action (ie get advice)


1 - There is no will. The only real assets are the property which is mortgage free and has been owned in joint names since purchase 35 years ago. Other assets would include in theory half a car, half a tv, half a set of kitchen crockery etc etc.


QUESTION - My dad has said the ownership of everything is now his, and doesn't see any need to see a solicitor. Issues?


2 - Credit Card debts. I have been ploughing through paperwork and there is several credit cards. 3 in my dads name - circa £7k of debt. Clearly he will continue to owe this. 4 in mums name - circa £9k of debt, and also a couple of store card / catalogue style debts.


QUESTION2 - Do the credit card debts die with mum? We now have death certificate so will clearly need to send copies off to evidence the death but what will happen then?


3 - Pension. Looks like mum has been getting 3 pension incomes....state, employer 1 ( v small) employer 2 (larger 30 yrs of service)


QUESTION3. Does my dad continue to get any of these or do they now cease?


Sorry, I know this is a complicated area, but my dad is grieving badly and at age 77 he isn't going to pick this up and run with it. I live in another part of the country but feel need to take action


Thanks

TBagpuss

I'm very sorry for your loss.

If things were owned jointly then yes, they would automatically pass to the other joint owner, so the house, any joint accounts would automatically be your dad's.

Credit cards -it depends. If you mum had any assets in her own name, then the debts must be paid from those assets.

Pensions> depends on the terms of the pension. The state pension will stop.
The others - it depends on the terms of the pension, and the options your mum picked, and (possible) how recently she retired.
They are very unlikely to continue at the same rate, and any automatic payments made for the period since your mum died will have to be repaid, so it's important to notify them sooner rather than later.
Lots of pensions include widows/widowers benefits and pay a reduced pension to the surviving spouse, BUT not all, and sometimes this is optional (i.e.your mum may, at some time, have made a choice as to whether she wanted to have a spouses pension paid when she died, or to have higher pension payments when she was alive.) If you find any pension statements among her papers these may tell you, if not, the pension co. should be able to do so but will need to see a copy of the death certificate.

Some pensions also pay death benefits (like life insurance) as a lump sum (particularly in the early years of retirement) and this may form part of your mum's estate (in which case it would have to be used to pay any debts) or be payable directly to your dad.

It is possible that your mum's estate is insolvent in which case you/your dad need to read about the implications of that before you take steps about any assets or debts in her name.

debtfree1day

Thanks that's very helpful. can you please elaborate on the final paragraph - whats insolvent estate?


I am paying 4k for the funeral. Dad still has pension and is frugal by nature, and with a house as an asset will be ok I think. Am I missing something


thanks

debtfree1day

also, is there a template letter somewhetre for reporting death to


mobile hpone companies
councils (council tax)
state pension
credit cards
banks etc etc


cheers

Mojisola

debtfree1day wrote: »

also, is there a template letter somewhetre for reporting death to

mobile hpone companies
councils (council tax)
state pension
credit cards
banks etc etc

When you register the death, the registrar will ask whether you want to use the 'Tell Us Once' service - that notifies the DWP, the local council, the passport office, the DVLA, etc.

Phone companies, banks and similar have to be told individually.

Keep_pedalling

You do need to establish what assets your mum held in her own right, from what you said about her pensions it sounds unlikely that she would have nothing to her own name. The house only passes automatically to your father if they owned it as joint tenants, if it is held as tenants in common then the 50% held by your mother forms part of her estate which would mean her estate would defiantly not be insolvent.

You can establish how the house is held via the land registry.

http://www.landregistrydocuments.co.uk/?gclid=COOGxJucw8kCFVWdGwodxpAMDA

Toxteth_OGrady

debtfree1day wrote: »

also, is there a template letter somewhetre for reporting death to


mobile hpone companies
councils (council tax)
state pension
credit cards
banks etc etc


cheers

This may help:

http://death-duties.co.uk/templates

:cool:

TOG

Newly_retired

Sorry for your loss.
Great advice given so far.
Did your mum have any form of life insurance?

Trivial, I know, in the greater sceme of things, but your dad will now get 25% single person's reduction on his council tax if henowlives alone.

GothicStirling

Who is the registered owner of the car? If its your Mum then it has to be counted as an asset.

zagfles

Sorry for your loss.

Have you seen this for advice on what you need to do and when: https://www.gov.uk/after-a-death/overview

It's possible the credit card companies would have a claim against your Mum's share of the house even if was jointly owned, if her estate is insolvent.

Your Dad could inherit some state pension from your Mum, if she was getting some SERPS/S2P and/or your Dad is not getting a full basic state pension and it was less than your Mum's. When you tell the DWP of the death they should sort it out.

zagfles

debtfree1day wrote: »

Thanks that's very helpful. can you please elaborate on the final paragraph - whats insolvent estate?


I am paying 4k for the funeral. Dad still has pension and is frugal by nature, and with a house as an asset will be ok I think. Am I missing something


thanks

An insolvent estate is where the assets aren't enough to pay the debts of the deceased.

For assets owned jointly (beneficial joint owners rather than tenants in common) the asset automatically passes to the other owner(s), they are not included in the estate as far as the will, or intestacy rules, are concerned, however they do count as part of the estate for IHT and creditors can make a claim on them if the estate is insolvent. But there is no IHT between spouses.

You might not need a solicitor or even probate if the only significant assets your Mum owned where jointly owned with your Dad.

Any bank accounts - phone the banks and ask them, most banks have a dedicated bereavement helpline who are used to dealing with this. It's likely they won't insist on probate for a small amount.

For the house - contact the land registry and let them know, they'll tell what you need to do. Won't need probate if it's owned jointly (unless as tenants in common). If the property is unregistered I don't think you need to do anything - but best check.