Help on credit cards

Keep_pedalling

Newly_retired wrote: »

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.

Those sort of purchases add nothing to the estate, but I don't think you can buy stuff like that on an Argos card.

Turbogal

I popped into the Bank today to close her account and asked the very helpful lady in there about the debts. She said that they should ask one question which is. How you enough money from her estate to repay the debt? If the answer is no then they would write it off. I popped into see a solicitor who suggested that I write to all the creditors with a break down of the list of creditors and the amount of money left with proof that there is not enough to cover all debts to then see what they say. I have worked out a pro-rata list of each of the creditors and the amount owed and if they want some money out of what is left all I can do is offer that. At least I can give proof of everything and be as honest as I can.

Yorkshireman99

Turbogal wrote: »

I popped into the Bank today to close her account and asked the very helpful lady in there about the debts. She said that they should ask one question which is. How you enough money from her estate to repay the debt? If the answer is no then they would write it off. I popped into see a solicitor who suggested that I write to all the creditors with a break down of the list of creditors and the amount of money left with proof that there is not enough to cover all debts to then see what they say. I have worked out a pro-rata list of each of the creditors and the amount owed and if they want some money out of what is left all I can do is offer that. At least I can give proof of everything and be as honest as I can.

Be very cautious indeed of trying to administer an insolvent estate. You can easily end up being personally liable for some debts. It is very good to try and do the decent thing but just be careful.

Turbogal

So what do I do, I don't want to land myself in the brown stuff and end up liable, does anyone know how I avoid that at all? The only creditor I have had correspondence from so far is the credit card, the others have been told and I have heard nothing at all?

Yorkshireman99

Turbogal wrote: »

So what do I do, I don't want to land myself in the brown stuff and end up liable, does anyone know how I avoid that at all? The only creditor I have had correspondence from so far is the credit card, the others have been told and I have heard nothing at all?

Write to each creditor by Signed For letter stating that the estate is insolvent and that you will not be administering the estate. The first call on any funds is for the funeral expenses that you are entitled to recover. After that let the creditors decide if the want to administer the estate. Chances are that they will all write the debts off.

Keep_pedalling

Turbogal wrote: »

So what do I do, I don't want to land myself in the brown stuff and end up liable, does anyone know how I avoid that at all? The only creditor I have had correspondence from so far is the credit card, the others have been told and I have heard nothing at all?

First thing to do is to establish if the insurance policies were written in trust. If this is the case then they do not form part of her estate, in which case there will be no assets to distribute, so you simply inform the creditors that after funeral expenses there is nothing in the estate and that you are not admistering it.

If that is not the case then what remains of the estate should be distruibuted to the creditors on a pro rata basis, but you need to make sure you do that by the book.

Yorkshireman99

Keep_pedalling wrote: »

First thing to do is to establish if the insurance policies were written in trust. If this is the case then they do not form part of her estate, in which case there will be no assets to distribute, so you simply inform the creditors that after funeral expenses there is nothing in the estate and that you are not admistering it.

If that is not the case then what remains of the estate should be distruibuted to the creditors on a pro rata basis, but you need to make sure you do that by the book.

Bad advice. Administering an insolvent estate is a real no no. Really it is far better to do absolutely nothing and let the creditors deal with it. The OP can easily end up being personally liable unless she knows exactly what to do.

Turbogal

Yorkshireman99 wrote: »

Write to each creditor by Signed For letter stating that the estate is insolvent and that you will not be administering the estate. The first call on any funds is for the funeral expenses that you are entitled to recover. After that let the creditors decide if the want to administer the estate. Chances are that they will all write the debts off.

Thank you, excuse my ignorance but how do the creditors administer the estate, will they want to see my bank statements, funeral bills etc? Not that that is a problem, there will be some £2500 ish left over and the debts total £6250? What happens to the £2500?

At then end of the day, they are all unsecured and apart from being sorted pro-rata there is no hierarchy amongst them as to who gets what?

My poor Mum would be mortified at this, she was worried before she passed and I said not to, I would sort it, little knowing what was to come!

Yorkshireman99

Turbogal wrote: »

Thank you, excuse my ignorance but how do the creditors administer the estate, will they want to see my bank statements, funeral bills etc? Not that that is a problem, there will be some £2500 ish left over and the debts total £6250? What happens to the £2500?

At then end of the day, they are all unsecured and apart from being sorted pro-rata there is no hierarchy amongst them as to who gets what?

My poor Mum would be mortified at this, she was worried before she passed and I said not to, I would sort it, little knowing what was to come!

It is unlikely that they will consider it worth doing but you have to give them the opportunity to do so. If they do just cooperate with them and tell them what funds there are. They will have to apply for letters of administration to do so. If they do in the end you just pass the funds to them.

securityguy

Turbogal wrote: »

At then end of the day, they are all unsecured and apart from being sorted pro-rata there is no hierarchy amongst them as to who gets what?!

That is only your problem if you make it so.

The estate is clearly insolvent. You are entitled to have reasonable funeral expenses paid before pretty much everything else, and after that, as you are not the executor/administrator, what the creditors do is their problem. They are not entitled to any information from you other than the details of the money used for the funeral. You simply sort out the payment for the funeral and then leave them to it.