Probate help

Foza

My father died suddenly, he owned the house with my mum so the house will automatically become hers. He had his own bank account but had an outstanding loan and credit card bill in his name only, the bank have taken the money he had in his account to cover their debt but there is still £1000 left owing on his loan and a credit card bill to pay, so he now has nothing in his bank. He did have life insurance which has been paid to my mother. Does my mother need to go through probate and what will happen to his debt?

Yorkshireman99

Foza wrote: »

My father died suddenly, he owned the house with my mum so the house will automatically become hers. He had his own bank account but had an outstanding loan and credit card bill in his name only, the bank have taken the money he had in his account to cover their debt but there is still £1000 left owing on his loan and a credit card bill to pay, so he now has nothing in his bank. He did have life insurance which has been paid to my mother. Does my mother need to go through probate and what will happen to his debt?

What other assets did he have such a car or similar? Nobody is liable for the debts. Probate may not be required but check with the Land Registry entry and is theior any mortgae outstanding?

Mojisola

Foza wrote: »

My father died suddenly, he owned the house with my mum so the house will automatically become hers.

He had his own bank account but had an outstanding loan and credit card bill in his name only, the bank have taken the money he had in his account to cover their debt but there is still £1000 left owing on his loan and a credit card bill to pay, so he now has nothing in his bank.

Was this after the funeral had been paid for?

Foza

Their was no mortgage the house was theirs, he has a car and my mum has paid for the funeral out of the life insurance .

Yorkshireman99

Foza wrote: »

Their was no mortgage the house was theirs, he has a car and my mum has paid for the funeral out of the life insurance .

You really need to value all his assets including the car and see if their is enough to pay off the loan and any other debts. Then you may need to apply for probate via letters of administration if there is no will..

Foza

He did not leave a will. The only asset he had was his car but that is not enough to pay his debts. Can they take the life insurance money my mum received?

Yorkshireman99

Foza wrote: »

He did not leave a will. The only asset he had was his car but that is not enough to pay his debts. Can they take the life insurance money my mum received?

They can't take the money from elsewhere but technically the car should be sold to help pay the debt. However the most likely thing is that the bank will wite it off. Just tell them there is no money.

Foza

Will she still have to go through probate via letters of administration?

Yorkshireman99

As the is no will then to administer the estate LOA are required. However if the only asset is the car then the estate is insolvent and you do nothing except tell the creditors there is no money. The chances are they will write the debt off.

Mojisola

Foza wrote: »

the bank have taken the money he had in his account to cover their debt

Foza wrote: »

my mum has paid for the funeral out of the life insurance .

The bank had no right to take all the money - the funeral costs are the first thing that has to be paid out of the deceased's savings.

Yorkshireman99

Mojisola wrote: »

The bank had no right to take all the money - the funeral costs are the first thing that has to be paid out of the deceased's savings.

I beleive the right of offset means that does not apply. Have you a cite that says it does please?