Bank loan after death

awm112

Hi all, thanks in advance if anyone can advise here.

My dad passed away this week and I'm trying to sort out all of the usual stuff. He has a bank loan for £2700 apparently and has around £1500 in his current account. Are we allowed to use that money to fund the funeral (£3650) or will it get absorbed into the loan? I've heard rumours that funeral expenses are the first priority but unsure how true this is.

Thank you.

DUTR

Funeral expenses do come high in the list followed by debts, before any remaining estate (if any) is shared.

awm112

Thank you ��

getmore4less

Is the loan from the same bank as the account that holds the money?

The debt may be secured on the bank account(set off) which takes higher priority than a funeral as the estate asset is the residue held by the lender.

(some lenders can be generous)

No other assets to pay the debt later if you need the cash?

awm112

Yes same bank for loan and current account (hsbc). No other assets.

mum2one

This is my experience...

My dad passed 2 weeks ago, I became executor of will.

Main bank account - joint with mum - lloyds (over drawn)

Isa - Lloyds - plus balance 4p

Credit card - lloyds 4.5k owing.

Funeral - Have no funds (awaiting life ins - know that wont cover all costs).

..........
When I took death certificate in -
Explained financial state were in

Main account - couldnt touch as joint - also overdrawn (they took dads name off)

ISa - took the whole 4p - off his credit card...

...
My betting is any money they will claim first.

They did ask if home was valued at more than 120k (not) we never went any further with that discussion

Yorkshireman99

mum2one wrote: »

This is my experience...

My dad passed 2 weeks ago, I became executor of will.

Main bank account - joint with mum - lloyds (over drawn)

Isa - Lloyds - plus balance 4p

Credit card - lloyds 4.5k owing.

Funeral - Have no funds (awaiting life ins - know that wont cover all costs).

..........
When I took death certificate in -
Explained financial state were in

Main account - couldnt touch as joint - also overdrawn (they took dads name off)

ISa - took the whole 4p - off his credit card...

...
My betting is any money they will claim first.

They did ask if home was valued at more than 120k (not) we never went any further with that discussion

Are you aware of the liability of the local authority to pay the funeral costs in certain circumstances?

Yorkshireman99

awm112 wrote: »

Hi all, thanks in advance if anyone can advise here.

My dad passed away this week and I'm trying to sort out all of the usual stuff. He has a bank loan for £2700 apparently and has around £1500 in his current account. Are we allowed to use that money to fund the funeral (£3650) or will it get absorbed into the loan? I've heard rumours that funeral expenses are the first priority but unsure how true this is.

Thank you.

If the loan and current account are with the same bank then the bank will almost certainly offset one against the other. Have explored other sources of funding for the funeral?

mum2one

Yorkshireman99 wrote: »

Are you aware of the liability of the local authority to pay the funeral costs in certain circumstances?

Weve applied for a funeral grant (over 65) not an automatic entitlement, As we knew there would so some ins to help 2wards it, didnt go down the authority route, def would have had to if knew couldnt get some help x

mum2one

If your dad was under 65 when he passed ur automatically get a breavement allowance of £2000.

I know it still leaves a gap - is there any life insurance / other bank accounts / was he a member of certain organisations (applying for a grant)
Union member
British Legion
Did he pass of cancer (sorry not meant to be nosey, - could apply for a McMillain granT)

If u want to chat or anything pm me and if I can help I will xx

awm112

Thanks everyone.

He was 73 and died of an intestinal haemorrhage.

I work full time but don't really have much in the way of savings. I don't claim any benefits so not entitled to the government funeral grant thing.