Husband deceased with debts - Pension help please

Sirlaughalot

My Brother died in January this year and left debts in the way of a personal loan and credit card. His wife is the executor of his estate and I`m trying to help her with the funeral and financial side of things. I`m trying to help others on this forum so i will keep the question concise and create more individual threads on other aspects of the process as we find them. It may help others when searching for specific problems.

As spouse my sil is entitled to a small pension from transferred from my brother on his death.
Does this in any part form part of his estate or does this stay with his wife? She as been offered £456 a year by the pension company or a one-off payment of around £10800. She is 60 years old does she have any other options assuming the pension is hers to keep and does not form of the debt settlement with creditors.

Thanks in advance

Keep_pedalling

The pension will not form part of his estate, but the question about what to do with it requires more info. What pension provision does she have of her own, is his pension index linked ect.

There is also a pensions forum that you really should ask such questions on, as there is a lot more pension expertise there.

Does his estate have sufficient assets to pay off the depts? If not your SIL should be very careful about administering the estate, as mistakes could end with her being personally liable for them.

Sirlaughalot

She went to the bank yesterday and their joint current account and savings account have been transferred to her name.
My brother's debts were in his sole name and with the same bank as their joint accounts. My question is do the joint bank/savings accounts form any part of my brother's estate.

Keep_pedalling

Sirlaughalot wrote: »

She went to the bank yesterday and their joint current account and savings account have been transferred to her name.
My brother's debts were in his sole name and with the same bank as their joint accounts. My question is do the joint bank/savings accounts form any part of my brother's estate.

Not normally but if the dept is high enough his creditors could pursue the debt through the courts. Is there a property involved and if so how was it held?

Sirlaughalot

Keep_pedalling wrote: »

Not normally but if the dept is high enough his creditors could pursue the debt through the courts. Is there a property involved and if so how was it held?

Yes there is a property involved but it seems quite complicated to me. In the Will, it says it is left in trust to his wife who is the trustee. When she dies her will says the property goes to the trustees who seem to be their twin daughters.

Hope this makes sense

Keep_pedalling

Sirlaughalot wrote: »

Yes there is a property involved but it seems quite complicated to me. In the Will, it says it is left in trust to his wife who is the trustee. When she dies her will says the property goes to the trustees who seem to be their twin daughters.

Hope this makes sense

That would suggest that the house is owned as tenants in common, and it sounds like that his share is his only asset. If there is no other way to pay the debts then it is going to be have to paid from his equity in the house.

Sirlaughalot

Keep_pedalling wrote: »

That would suggest that the house is owned as tenants in common, and it sounds like that his share is his only asset. If there is no other way to pay the debts then it is going to be have to paid from his equity in the house.

Thanks,

I have provisionally made contact with the lenders, the will company who set up the trust, the national debt line, and other organizations who can give assistance.

The advice has varied, the trust company, as you would expect claims there is no debt to pay it will die with the deceased. The lenders suggest provisionally that they would not look to pursue the debt from the deceased, a lifelong customer, but would not write the debt off either just leave it dormant whatever that could imply! The debt line asked if the debt was secured or not. Macmillian bereavement support implied that the debt would be written off.

The debt is not small and all funds coming in ie insurance payouts/pensions are all in the name of his wife. So the estate has no assets to pay the debts other than the property which is held in trust.

Keep_pedalling

She needs to take professional advice, especially if there wills were drawn up by some unregulated will writing company.

Sirlaughalot

Keep_pedalling wrote: »

She needs to take professional advice, especially if there wills were drawn up by some unregulated will writing company.

They are Members of The Society of Will Writers and estate planners so i will give them the benefit of the doubt for the time being

lincroft1710

Sirlaughalot wrote: »

They are Members of The Society of Will Writers and estate planners so i will give them the benefit of the doubt for the time being

So not proper solicitors

Keep_pedalling

Sirlaughalot wrote: »

They are Members of The Society of Will Writers and estate planners so i will give them the benefit of the doubt for the time being

In which case she definitely needs to talk to a solicitor.