Bank loan after death

Yorkshireman99

awm112 wrote: »

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.

If there are no funds then the hospital where he died or the local authority are obliged to pay. Don't arange anything your self or you will be liable.

Andrew_Ryan_89

I believe if you can't pay for a funeral, the council will pay for a "paupers" funeral but can claim the money back through his estate.

Yorkshireman99

Andrew_Ryan_89 wrote: »

I believe if you can't pay for a funeral, the council will pay for a "paupers" funeral but can claim the money back through his estate.

It is now known as a public health funeral as the term "pauper" is seen as offensive. It is not unknown for the local authority to try and pressure relatives to pay even though they have no obligation to do so. There is no shame in this happening as it is a common occurrence. It will be a no frills affair and usually cremation because it is cheaper.

awm112

I'll find a way to pay for a "proper" cremation regardless. I've just read about how with insolvent estates, the priority is set out in legal terms, and funeral costs come second only to secured debts ie mortgages. As my dad didn't have a mortgage, I was just wondering where the bank would stand with regards to the money in his current account and his personal loan.

It's a bank holiday weekend so I can't get through to the relevant team at HSBC. I was just curious because if I had access to that money for funeral planning, I'd be able to be a bit more lenient with flowers, funeral cars etc.

mum2one

Without sounding heartless my original plan was to ring and make an appointment with couple of funeral directors to explain the lack of money at present, but he beat me to it.

WHen I rang the furneral directors, I explained there and then that we needed to apply for grants - they were great and really helpful, the gentleman dealing with us, said as I was upfront then they would do everything to help where they could.

What we had
The collection / home to hospital / hospital to chapel of rest
Prepared for visitors
Basic coffin
1 car for family
Newspaper notifications - plan was 2 local papers
order of service - 50
cremation

The estimate was £3205

Flowers - We spoke to the florist, instead of the traditional Dad / flowers / wreath we had 2 posies - they were about 12in circles - they came to £80.

We were told that any money owed could be paid off over 12 mths.

mum2one

awm112 wrote: »

I'll find a way to pay for a "proper" cremation regardless. I've just read about how with insolvent estates, the priority is set out in legal terms, and funeral costs come second only to secured debts ie mortgages. As my dad didn't have a mortgage, I was just wondering where the bank would stand with regards to the money in his current account and his personal loan.

It's a bank holiday weekend so I can't get through to the relevant team at HSBC. I was just curious because if I had access to that money for funeral planning, I'd be able to be a bit more lenient with flowers, funeral cars etc.

I can only go by what happened with dads money - the credit card wasn't secured like a mortgage, bear in mind that when you ring through to the bank you may just get a call centre employee (no offence to anyone) - the reason I say this is they may not know the correct procedure - I was told that when I take the death cert into the branch that I needed to discuss obtaining a consolidation loan for my fathers credit card.....

Also you would be better making an appointment with the branch to deal with the death side of things.

Apologies if I have asked before - was there any life insurance ??

......
Another route I would go is ring some local solicitors - ask for the free intro session - there be one that will be able to slot u in and give advice.

Usually its a 20 or 30 min slot - if you do have to go that route have all paperwork ready, - bank statements / loan paperwork etc. xx

getmore4less

Just because there is money does not mean you can order more flowers/cars at the expense of the creditors.

Mortgage is just one type of secured debt.

Many debt agreements include security typically for bank business it will be with set off clauses in the account agreement.

nwc389

From memory when I worked for the bank and did bereavements funeral costs came first and then any debt was recovered.
Go into a branch and deal face to face , often bereaved customers that I saw had been given incorrect information by the contact centre staff.
Sorry for your loss .

ERICS_MUM

When my Mum died in March, I rang her bank NatWest and was passed to their Bereavement Services dept who obviously are the 'experts' and they were excellent, very clear about what had to be done and very respectful.

It's worth checking if HSBC provides a similar service before trying to deal with someone on the counter in a branch or with a call centre.

FreeBear

mum2one wrote: »

I was told that when I take the death cert into the branch that I needed to discuss obtaining a consolidation loan for my fathers credit card.....

What a wonderful wheeze on their part - Get you to take out the loan and then become responsible for any/all repayments.

I sincerely hope you told them exactly where to file this (crass) suggestion.