Probate - paying debts and estate balance

sorethumbs

I'm looking for some advice regarding probate
From what I understand if the estate is under £5000 in England then there is no fee to apply for administering if the estate (please correct if I'm wrong)
There are only 2 debts that I'm aware of, both in the form of store shopping accounts.
My question is in 2 parts.
1) If the value of the estate is so low that the store cards cannot be paid what happens?
2) Secondly there is a life and illness policy in place taken out by the partner of the deceased. So whilst the policy is was not taken out or paid for by the deceased it does actually pay out after the deceased has passed. Is that considered part of the deceased estate? Or is the policy and any return made from it the non-deceased persons money?
Cheers in advance

Yorkshireman99

sorethumbs wrote: »

I'm looking for some advice regarding probate
From what I understand if the estate is under £5000 in England then there is no fee to apply for administering if the estate (please correct if I'm wrong)
There are only 2 debts that I'm aware of, both in the form of store shopping accounts.
My question is in 2 parts.
1) If the value of the estate is so low that the store cards cannot be paid what happens?
2) Secondly there is a life and illness policy in place taken out by the partner of the deceased. So whilst the policy is was not taken out or paid for by the deceased it does actually pay out after the deceased has passed. Is that considered part of the deceased estate? Or is the policy and any return made from it the non-deceased persons money?
Cheers in advance

If there is not enough money to pay the debts then the estate is insolvent. You should walk away from the problem and don't try to administer the estate. Simply write to the companies and explain there is no money. Money from the policy does not count as part of the estate as it will be paid to someone else. If the deaceased was claiming any means tetsed benfits then the DWP may ask for details in case there has been any over payment.

sorethumbs

Many thanks for the advice. Available funds would literally only be around £500 so i guess that can be taken off as part payment for funeral costs leaving other debtors nothing.
That also has me thinking.. if I don't apply for any official capacity to deal with the small estate how would funds in the deceaseds bank account get accessed to help pay for funeral?

Yorkshireman99

sorethumbs wrote: »

Many thanks for the advice. Available funds would literally only be around £500 so i guess that can be taken off as part payment for funeral costs leaving other debtors nothing.
That also has me thinking.. if I don't apply for any official capacity to deal with the small estate how would funds in the deceaseds bank account get accessed to help pay for funeral?

Some banks will pay up others require probate. Funeral cost come first. Have you told the bank of the death? For future reference there was no need to pay for the funersl. The local council have to pay if there is no money in the estate.

Margot123

If the deceased was on certain benefits, then the DWP will make a payment towards the funeral, if not pay for it in total.
Any funeral director will offer free advice on this. In my experience, they are the best and most compassionate in this situation.

Yorkshireman99

Margot123 wrote: »

If the deceased was on certain benefits, then the DWP will make a payment towards the funeral, if not pay for it in total.
Any funeral director will offer free advice on this. In my experience, they are the best and most compassionate in this situation.

But they will noy usually tell you about the council paying.