Leaving a Will or not.

Robisere

Don't quite know where to put this, it's a thought which came to me when reading another Thread. Just as a note: OH and I are solvent, not wealthy, with absolutely no debts.

I know (or think I know!) that debts can be laid at the door of descendants, whether mentioned in a Will as receiving financial or other bequests, or if no Will has been left.

But what would happen to those debts, if the deceased ancestor actually directed in a legally-written Will, that close relatives such as sons and daughters, were to receive nothing from the home contents? If the home was rented and the contents were of very low value, compared to the amount of debt?

It's basically a Thought Exercise, but I knew a good mate years ago who has burned through two fortunes and was on his way to drinking himself to death when I last saw him. His first fortune was blown away by his wife leaving their two children with his mother whilst he was out of the country on business. The wife and his business partner sold off the business and all assets, then skipped the country. He divorced her eventually. The ex-wife and ex-partner were eventually found in the USA, extradited and convicted, but the money was gone. Undeterred, he set about making another fortune, but had become bitter and that's when he started drinking seriously. He was so fixed on making money that he neglected the kids, who were taken to his parents' care. He was very intent on becoming rich again, eventually committed massive fraud and was jailed. It turned out that he had convinced his siblings separately, to remortgage both their houses and make over the houses to him, as basis for huge loans. They lost their homes when he was jailed and his business collapsed again. When he came out, the kids and his whole family wanted nothing to do with him. I tried to make him stop drinking, but he had found a job and was downing spirits all the time. We had been very good mates, I had been his Best Man, but I could not stand to see him drinking himself to death, so after I moved counties and retired 20+ years ago, I never saw him again.

I know that he was many millions in debt and no way will he ever get to pay any of it back. I just wonder what would happen to that debt, because he told me at our last meeting that he had left instructions that whatever was left in the house, was to go to a charity which supplies second-hand home items to those in need. He had also stated that he would exclude all his family from the Will, hence my question. I liked all of his family and was an "uncle" to his kids. I just hope they don't suffer as a result of dad's bitterness.
Sorry about the long post!

Torry_Quine

Any debts when a person dies are payable out of the estate left. If there isn't sufficient then the debt is not the responsibility of anyone whether mentioned in any will or not. Bequests are only paid out after all debts have been payed

Shakin_Steve

As far as I know, debts can only be taken from the deceased's estate, not passed to his descendants. His heirs, yes.

molerat

Robisere wrote: »

Don't quite know where to put this, it's a thought which came to me when reading another Thread. Just as a note: OH and I are solvent, not wealthy, with absolutely no debts.

I know (or think I know!) that debts can be laid at the door of descendants, whether mentioned in a Will as receiving financial or other bequests, or if no Will has been left. Debts are not the responsibility of the descendants. All debts belong to the estate and should be settled by the executor before distributing the estate irrespective of a will being in place. In simple terms if an estate has a worth of £100K and the will gives £50K each to the children but the deceased left £100K of debt then the kids get £0 as the debt needs settling first. If the estate is worth £0 then the debtors and the kids all get £0.

But what would happen to those debts, if the deceased ancestor actually directed in a legally-written Will, that close relatives such as sons and daughters, were to receive nothing from the home contents? If the home was rented and the contents were of very low value, compared to the amount of debt?

It's basically a Thought Exercise, but I knew a good mate years ago who has burned through two fortunes and was on his way to drinking himself to death when I last saw him. His first fortune was blown away by his wife leaving their two children with his mother whilst he was out of the country on business. The wife and his business partner sold off the business and all assets, then skipped the country. He divorced her eventually. The ex-wife and ex-partner were eventually found in the USA, extradited and convicted, but the money was gone. Undeterred, he set about making another fortune, but had become bitter and that's when he started drinking seriously. He was so fixed on making money that he neglected the kids, who were taken to his parents' care. He was very intent on becoming rich again, eventually committed massive fraud and was jailed. It turned out that he had convinced his siblings separately, to remortgage both their houses and make over the houses to him, as basis for huge loans. They lost their homes when he was jailed and his business collapsed again. When he came out, the kids and his whole family wanted nothing to do with him. I tried to make him stop drinking, but he had found a job and was downing spirits all the time. We had been very good mates, I had been his Best Man, but I could not stand to see him drinking himself to death, so after I moved counties and retired 20+ years ago, I never saw him again.

I know that he was many millions in debt and no way will he ever get to pay any of it back. I just wonder what would happen to that debt, because he told me at our last meeting that he had left instructions that whatever was left in the house, was to go to a charity which supplies second-hand home items to those in need. He had also stated that he would exclude all his family from the Will, hence my question. I liked all of his family and was an "uncle" to his kids. I just hope they don't suffer as a result of dad's bitterness.
Sorry about the long post!

..........................................

Robisere

Shakin_Steve wrote: »

As far as I know, debts can only be taken from the deceased's estate, not passed to his descendants. His heirs, yes.

Yes I di not make the distinction between heirs and descendants. Thank you for pointing that out.:beer:

Robisere

Thanks molerat, I did say it was a Thought Exercise and you should have gathered from my admittedly long post, that there would be very little left, apart from household stuff.
............................................................ Yes I know. It's long. I said so, with apologies. But thank you for reading it!