Mum died intestate with significant debts

LB_83

Hi,

I wondered if anyone could help me, as I don't know where to begin.
The situation is as follows:

Mum died with no Will
She owed a lot of money on her house (it has been close to being repossessed in the past and she had been to Court about this but somehow managed to keep the house). I believe the house could sell for the amount she owes the bank but it is in a state at the moment so would probably fetch less. I can't see it selling for much more
She owed other creditors too - so far I have found other debts totalling £16k
My three sisters and I have no spare cash to foot any bills (e.g. Solicitors)
She had no spouse so we daughters are next of kin but it all seems to have landed on my shoulders

The first thing I did was let mum's mortgage provider know. I have spoken to three different helplines, none of which were very helpful. What I want is for the house to be repossessed (it would be better now if it had been in the past), as I don't believe there is anything in it for us. Can you request for the bank to just take the house and deal with the sale?! Should I get a valuation first?!

If that sale via the bank does happen, who lets the creditors know? I have telephoned the utility companies, used the 'tell us once' service, informed her bank etc, so they have my name but I have not applied for probate - should I?! I don't really want to, Is there any point in doing this if you know that you will not inherit anything once debts are paid?

Citizens advice states that, for insolvent estates, you should seek legal advice. Easier said than done when you have no spare cash. I am currently moving house myself so all my money is tied up in that.

I'm sorry for my utter cluelessness. If anyone could point me in the right direction, I'd be grateful. It's a very difficult time for me. Mum was only 57, I am pregnant, I am panicking. Thank you so much

Yorkshireman99

LB_83 wrote: »

Hi,

I wondered if anyone could help me, as I don't know where to begin.
The situation is as follows:

Mum died with no Will
She owed a lot of money on her house (it has been close to being repossessed in the past and she had been to Court about this but somehow managed to keep the house). I believe the house could sell for the amount she owes the bank but it is in a state at the moment so would probably fetch less. I can't see it selling for much more
She owed other creditors too - so far I have found other debts totalling £16k
My three sisters and I have no spare cash to foot any bills (e.g. Solicitors)
She had no spouse so we daughters are next of kin but it all seems to have landed on my shoulders

The first thing I did was let mum's mortgage provider know. I have spoken to three different helplines, none of which were very helpful. What I want is for the house to be repossessed (it would be better now if it had been in the past), as I don't believe there is anything in it for us. Can you request for the bank to just take the house and deal with the sale?! Should I get a valuation first?!

If that sale via the bank does happen, who lets the creditors know? I have telephoned the utility companies, used the 'tell us once' service, informed her bank etc, so they have my name but I have not applied for probate - should I?! I don't really want to, Is there any point in doing this if you know that you will not inherit anything once debts are paid?

Citizens advice states that, for insolvent estates, you should seek legal advice. Easier said than done when you have no spare cash. I am currently moving house myself so all my money is tied up in that.

I'm sorry for my utter cluelessness. If anyone could point me in the right direction, I'd be grateful. It's a very difficult time for me. Mum was only 57, I am pregnant, I am panicking. Thank you so much

Remember that legally neither you nor your family are liable for any of the debts. The standard advice is to do nothing but tell any debtors there is no money and not get involved at all. This may sound harsh but if you do start getting involved, known technically as intermeddling you can become liable for debts. If there is no money for a funeral you don't have to pay but if you organise the funeral then you will be liable for the costs. The local authority or hospital have to pay. Don't let anyone try to bully you or sign anything. Plenty of help here so don't be embarrased to ask.

LB_83

Thanks for your advice Yorkshireman. I haven't contacted any of the companies she owed. I had no choice but to contact untilities etc as the house is now vacant. She does owe them too so they have my name.
We have already paid for the funeral and that's fine but it is just about all we can afford. Between us we could manage that.
So, once the house is sold, if nothing remains I just need to send letters to creditors stating that they need to write off the debts as there is nothing left in the estate?
I won't apply for probate or anything...I guess I'll just sit tight. I have no idea who to speak to at the bank she owed the mortgage to. Last advice I got was to make an appointment in branch and speak to a mortgage advisor but I think this will be outside of their standard remit!

getmore4less

If you believe the estate is insolvent which from what you have said it appears to be then you don't have to do anything.

Google insolvent estates, there are a few good pages that cover the basics
Quite a few threads here have covered insolvent estates.
Have a read to get more informed quickly.
It is unlikely any solicitor will want to act unless you are willing to pay them, you might be able to get a free initial consultation.

The usual advice is walk away and do nothing however there are some basic things that are not classed as intermeddling.
You can secure the property and remove things for save keeping(like valuables,paperwork,sentimental).
(do not dispose or sell anything)

You can make enquiries(about assets & debts) but not worth bothering unless the estate has value.

You can notify institutions of the death but any further communication should be none or limited like write to the administrator.

Funeral options as above.

getmore4less

I would not be getting that involved with the mortgage company let them deal with the place if there is little or no equity.

Do not pay any utilities.

Can you clarify none of you lived with mum.

Yorkshireman99

LB_83 wrote: »

Thanks for your advice Yorkshireman. I haven't contacted any of the companies she owed. I had no choice but to contact untilities etc as the house is now vacant. She does owe them too so they have my name.
We have already paid for the funeral and that's fine but it is just about all we can afford. Between us we could manage that.
So, once the house is sold, if nothing remains I just need to send letters to creditors stating that they need to write off the debts as there is nothing left in the estate?
I won't apply for probate or anything...I guess I'll just sit tight. I have no idea who to speak to at the bank she owed the mortgage to. Last advice I got was to make an appointment in branch and speak to a mortgage advisor but I think this will be outside of their standard remit!

Noted. You don't need to write anybody unless they contact you. Just tell them the estate is insolvent.

Keep_pedalling

I would simply inform the mortgage company of the death, and that you believe the estate to be insolvent, and hand over the keys.

They will then have to deal with the estate presuming they want their money back.

LB_83

Thanks for your advice both. Yes, we can clarify that none of us lived there. I just want to hand the keys to the bank and let them deal with it - I said to them on the phone that I want no involvement. The house is theirs considering what was owed. Someone I spoke to did say I could give them the keys in branch, but I don't know whether to believe it as nobody sounded that clued up.
We have already been in the house and taken sentimental items - everything else has been left.
I said when I telephoned the utility company that I am not executor, I just needed to inform them of mum's death.
I will stop there then, aside from hopefully handing the keys over

Keep_pedalling

I would go into the branch, with the keys, copy of the death certificate and a letter simply stating the facts that the estate is insolvent and you have no intension of dealing with the estate.

BobQ

It is best that you "do nothing" apart from remove items of sentimental value or items of value for safe-keeping.

You do not have to, but tell the main creditor she has died and that any communications hould be addressed to the The Administrator of the Estate of (Mum's name)" When an Administrator is appointed give them the keys of the house.

You do not have to seek any legal advice (unless you want to consider administrating the estate). If you are satisfied that the estate is insolvent, literally do nothing. Otherwise you could be accused of intermeddling.

Just ignore any correspondence addressed to you and leave letters to the administrator in the house unopened. You can open mail addressed to your Mum but if it relates to debts or her estate just leave it in the house. You do not have to pay for anything that is a debt.

LB_83

Keep_pedalling wrote: »

I would go into the branch, with the keys, copy of the death certificate and a letter simply stating the facts that the estate is insolvent and you have no intension of dealing with the estate.

Daft question, but I also live in a different part of the country. Considering I'm in Surrey and the house is in West Yorkshire, could I just go into my local branch to do this?! Thank you!