Who pays the deceases debts?

aviii

thanks all, good information -


one more question:
What if there is no Estate - the decease left nothing - except for the debt - would the living family still need to pay off their parents debts..?




@ PasturesNew:- People only inherit "what's left over", not "what they expected".
that's a good point - I will remember that.

FreeBear

If the debt was solely in his/her name and there is insufficient funds left after assets have been liquidated and the funeral paid for, then the debt dies. No one else is responsible for paying off the debts. If the creditor persists in making demands, instruct them to pursue the matter through the courts (where they will get their backsides severely slapped by a judge).

If the debt was in joint names, then the other signatory becomes liable.

If there are funds left after funeral & legal expenses, then the creditors get a pro-rata payment if there isn't enough to cover the full debt - Some debts will take priority though.

Once funeral expenses, debts, and legal bills have been covered, the remainder is then distributed to the beneficiaries.

TonyMMM

aviii wrote: »

thanks all, good information -


one more question:
What if there is no Estate - the decease left nothing - except for the debt - would the living family still need to pay off their parents debts..?

.

If they left a house ( unless it was in negative equity) it sounds like there is an estate of some value ?

AnnieO1234

If they left a house where there is a life interest or similar left for someone by the will then I suggest they seek legal advice (or if the inheritance in the property is left to a minor or other dependent who currently resides there) then I suggest that your friend contacts a solicitor.

That said, I've had recent experience of a new bank (you'll know who I mean from google) who took over a credit card that my husband had before his cancer. They started making claims that they could go after my husband's power of attorney who was dealing with the matter. The threats from them escalated including in writing, after a bit of a tussle they paid themselves the entire balance. My point is that sometimes the banks, especially if you're just speaking to some random call centre clerk, don't know what the hell they're talking about.

xxx

girlsmum

when my dad passed away, my mum is still about. My dad had debts we just wrote to the debtors with a copy of the death certificate and heard no more. in theory the estate should cover the debts, but they never asked for it..