Probate help

Mojisola

Yorkshireman99 wrote: »

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

No. I thought I'd seen previous posts about this situation where the bank was forced to pay back the money for the funeral. Happy to be put straight.

If banks can empty an account in this way, this is another good reason for having accounts with more than one bank.

antrobus

Yorkshireman99 wrote: »

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

The 'Banking Practices Protocol - Estate Administration' states that;

Where a specific request is made, confirmation that the bank will allow the balance on accounts to be used before production of the grant of representation for payment of inheritance tax and the funeral bill. The bank may also allow these funds to be used for the payment of probate fees. The bank may require copies of relevant documentation, in accordance with the individual bank’s procedures. Irrespective of the purpose of a release of balances the bank may require an indemnity or possibly a solicitor’s undertaking. In all cases this confirmation is subject to the exercise of the bank’s right of set-off to the extent permitted by law where there are also debts due to the bank.

Which would lead me to believe that the right of set-off has precedence.

antrobus

Foza wrote: »

... Does my mother need to go through probate and what will happen to his debt?

Pay it out of the proceeds of the life insurance policy?

If the estate is insolvent, then the bank could apply for an Insolvency Administration Order and enforce payment against your mother, because she now has the house. Whether they would do so for a £1,000 debt I don't know. They might write it off as a matter of goodwill, or whatever.

Yorkshireman99

antrobus wrote: »

The 'Banking Practices Protocol - Estate Administration' states that;

Where a specific request is made, confirmation that the bank will allow the balance on accounts to be used before production of the grant of representation for payment of inheritance tax and the funeral bill. The bank may also allow these funds to be used for the payment of probate fees. The bank may require copies of relevant documentation, in accordance with the individual bank’s procedures. Irrespective of the purpose of a release of balances the bank may require an indemnity or possibly a solicitor’s undertaking. In all cases this confirmation is subject to the exercise of the bank’s right of set-off to the extent permitted by law where there are also debts due to the bank.

Which would lead me to believe that the right of set-off has precedence.

The loan agreement will always have a set off clause so it is the net figure that is relevant not the separate ones. Hence there is no asset that can be claimed even to pay the funeral expense.