Help on credit cards

Turbogal

Hello,

My lovely Mum passed away last week and we have just had her funeral which I paid for out of my money as her money from her over 50's plans is tied up as I had to send the paperwork to the USA for my brother to sign so that the money can be paid to my bank account for me to share out. However, on having a look through the forums I have a question or two.

Her over 50's plan policies are worth £3990.
Her funeral cost me £1545 (Direct Cremation but attended, she didn't want me to spend too much money so I didn't)
That leaves £2445
I dare say the DWP will want some money back too as she was in receipt of attendance allowance and she had just been paid when she passed away.
She owed £4105 on a credit card and approx. £1200 on an Argos card.
Clearly there is not enough money in her estate to pay both of these off completely. There is no property or anything else as she had lived with me for the past 9 years.
I know that these debts have to be cleared from her approx. £2445 estate.
My questions are.. would that be on a pro-rota basis?
and...
Are the CC and Argos going to want to see receipts/my bank accounts to prove that I haven't got the money to pay both of them off completely?
I want to make it clear that I am not trying to shirk my responsibilities here. However, I do question why these lenders would give a 70 odd year person such a credit level (the Argos card is £3500 limit, the CC is £7000), is that responsible lending?
These cards accounts have always been run immaculately, never defaulted and any deferred payments paid before they were due.

Thank you for your time
regards

Yorkshireman99

Turbogal wrote: »

Hello,

My lovely Mum passed away last week and we have just had her funeral which I paid for out of my money as her money from her over 50's plans is tied up as I had to send the paperwork to the USA for my brother to sign so that the money can be paid to my bank account for me to share out. However, on having a look through the forums I have a question or two.

Her over 50's plan policies are worth £3990.
Her funeral cost me £1545 (Direct Cremation but attended, she didn't want me to spend too much money so I didn't)
That leaves £2445
I dare say the DWP will want some money back too as she was in receipt of attendance allowance and she had just been paid when she passed away.
She owed £4105 on a credit card and approx. £1200 on an Argos card.
Clearly there is not enough money in her estate to pay both of these off completely. There is no property or anything else as she had lived with me for the past 9 years.
I know that these debts have to be cleared from her approx. £2445 estate.
My questions are.. would that be on a pro-rota basis?
and...
Are the CC and Argos going to want to see receipts/my bank accounts to prove that I haven't got the money to pay both of them off completely?
I want to make it clear that I am not trying to shirk my responsibilities here. However, I do question why these lenders would give a 70 odd year person such a credit level (the Argos card is £3500 limit, the CC is £7000), is that responsible lending?
These cards accounts have always been run immaculately, never defaulted and any deferred payments paid before they were due.

Thank you for your time
regards

Your late mother's estate is what is known as insolvent. The general rule is not to administer an insolvent estate.It is up to the creditors to do this if they wish to. Just write to them giving them the facts and say that you will not administer the estate. If you start what is known as intermeddling in the estate you coul up liable yourself.

Keep_pedalling

Yorkshireman99 wrote: »

Your late mother's estate is what is known as insolvent. The general rule is not to administer an insolvent estate.It is up to the creditors to do this if they wish to. Just write to them giving them the facts and say that you will not administer the estate. If you start what is known as intermeddling in the estate you coul up liable yourself.

Is it not a little late for that the OP has already cashed in the insurance policy and his/her mother's entire estate is sitting in their bank account.

I think attendance allowence is normally paid monthly in arrears so none of that last payment should need to be payed back.

You are correct about the dept having to be paid back on a pro rata basis. What about her personal effects, the credit card dept must have been spent on something that still has a value?

Turbogal

The money is not in my bank account, as I stated my brother in the USA has to sign paperwork and sent back to me and then I have to send to insurance with copy of Death Certificate.
It was my mothers Credit Card, it was not my business what she purchased on it.
Two differing opinions here then.
Thanks for replies.

Yorkshireman99

Turbogal wrote: »

The money is not in my bank account, as I stated my brother in the USA has to sign paperwork and sent back to me and then I have to send to insurance with copy of Death Certificate.
It was my mothers Credit Card, it was not my business what she purchased on it.
Two differing opinions here then.
Thanks for replies.

Noted. If there is sufficient money in the estate then the the debts have to be paid. Will the money be enough to cover the debts. Depending on how the insurance is worded it may not form part of the estate. The DWP will only want recover means tested benefits if any were overpaid but it does not sound as if your mother had enough for that to happen. You really need to be careful as the estate seems to have more debts than assets. Administering an insolvent estate is unwise. Better to tell the creditors what money there is and let them deal with it.

getmore4less

First check if the policy is within the estate or outside.

They can tell you that.

Keep_pedalling

Turbogal wrote: »

The money is not in my bank account, as I stated my brother in the USA has to sign paperwork and sent back to me and then I have to send to insurance with copy of Death Certificate.
It was my mothers Credit Card, it was not my business what she purchased on it.
Two differing opinions here then.
Thanks for replies.

Sorry, I misread what you said about the insurance. If you do end up administering the estate, you wIll need to ascertain what those credit cards were used for because if it was for physical goods they will still have a value and form part of her estate.

Turbogal

Keep_pedalling wrote: »

Sorry, I misread what you said about the insurance. If you do end up administering the estate, you wIll need to ascertain what those credit cards were used for because if it was for physical goods they will still have a value and form part of her estate.

So would that mean that I am expected to sell them to pay them back more or just return the goods to them?
Thanks for your reply

DCFC79

Turbogal wrote: »

So would that mean that I am expected to sell them to pay them back more or just return the goods to them?
Thanks for your reply

I presume sell them, i cant see returning them being the answer.

Keep_pedalling

Whoever administers the estate would need to sell these assets, assuming she had not bought them as gifts for someone else.

Newly_retired

But what if she spent them on intangible things eg paying for a Gardner, or music lessons for her granddaughter. Just examples. Not saying she did.