Debts after death

Star81

I have several loans and credit cards which are all solely in my name. If I should die who will be responsible for paying the remaining balances? I'm worried my parents will get hounded for repayments. Also, my mom lent me the money to use as the deposit for my flat in which I have now lived for over a decade. Is there any way I could guarantee that this deposit would be returned to my mom upon my death? Thank you

Linton

The deceaseds estate is responsible for paying debts before any beneficiaries are paid. In the circumstances you describe, there is no chance that your parents or anyone else will have to pay unless of course they are guarantors of the loans. If there is insufficient money left in the estate the debts will go unpaid.

Your mother's loan is more of a problem. Is it legally documented anywhere? How will anyone know that it was not a gift? If it was accepted to be a loan then it would count as another debt. I dont know of any reason why it should get priority over your other debts. One way of dealing with loans to buy property is for a charge to be placed on the property such that the debt was repaid when the property was sold. Whether this can be done at this stage and whether a charge on the deceaseds property takes precedence over other debts I dont know. Hopefully someone can say.

Poppy1984

Someone will be along soon to confirm this but I don't believe your parents would get hounded to pay your debts.
After you die any money in your estate would go to your debts any that remain after that would be written off they would not become your parents responsibility however I'm sure someone with better knowledge will confirm this.

The reason I really wanted to reply was to reach out to you as I was worried by the title you maybe considering taking your own life because of debt. If this is not the case I apologise and hope I haven't caused any offence.

However if this is the case, no debt problems are too big to solve and are NEVER worth ending your life for.

Contact step change https://m.stepchange.org for advise or speak to the Samaritans https://www.samaritans.org/how-we-can-help-you/what-speak-us-about/i-want-kill-myself

No matter how big the debt is there is always a way out and death is not it.

Again sorry if I've caused any offence

Star81

Thank you both for your replies. I am relieved to know my parents will not be expected to repay my debts. The money my mom lent me was a deposit for my flat but it is a rental property, not bought so there is no mortgage to sort out. I just wanted to know where things stood as if I were to leave the flat the deposit would be returned to my bank account but if I should die is there a way round it so the money would be returned to my mom. Or I'm guessing maybe if the deposit is returned to my account it would be used then for debt repayments? This would be OK if this happened.
Poppy1984 thank you for your concern, it's not the debts themselves that concern me but I am very worried should my family be left with them. However I am now relieved to know this shouldn't be the case. You haven't caused any offence !!!55357;!!!56898;

Poppy1984

Star81 wrote: »

Thank you both for your replies. I am relieved to know my parents will not be expected to repay my debts. The money my mom lent me was a deposit for my flat but it is a rental property, not bought so there is no mortgage to sort out. I just wanted to know where things stood as if I were to leave the flat the deposit would be returned to my bank account but if I should die is there a way round it so the money would be returned to my mom. Or I'm guessing maybe if the deposit is returned to my account it would be used then for debt repayments? This would be OK if this happened.
Poppy1984 thank you for your concern, it's not the debts themselves that concern me but I am very worried should my family be left with them. However I am now relieved to know this shouldn't be the case. You haven't caused any offence !!!55357;!!!56898;

Thank you for coming back and replying, I was thinking about you. I understand that worry, I have a teenage son and have had similar worries.
Are you using the debt free wanabe Page? I love it I get so much inspiration for tackling my debts. Also I have been listening to Dave Ramsey totalminey mske over audio book on YouTube that has some really good info and I found it very motivating.
I wish you all the best in everything, take care x

Flugelhorn

Appreciate you have some debts but if you are young and healthy a life insurance policy would not cost much and you could name your parents for it to go to - I think this would be outside your estate and hence would not be used to pay your debts.
PS am sure someone else will know the exact answer to this

nom_de_plume

Flugelhorn wrote: »

Appreciate you have some debts but if you are young and healthy a life insurance policy would not cost much and you could name your parents for it to go to - I think this would be outside your estate and hence would not be used to pay your debts.
PS am sure someone else will know the exact answer to this

Good idea and what's more there's a £75 gift voucher available if anyone takes out life cover through this website - https://www.moneysupermarket.com/life-insurance/

OP. I've assumed you were born in 1981 (purely based on your username)

As a non smoker you are looking at less than a fiver a month for £20,000 cover on a 10 year level term policy.

nom_de_plume

Star81 wrote: »

The money my mom lent me was a deposit for my flat but it is a rental property.....I just wanted to know ....... is there a way round it so the money would be returned to my mom.

One probable way would have been if your mother paid the deposit direct to the landlord and it was clearly documented as such. No idea if that can be arranged retrospectively.

Star81

Thank you all for your responses, you are all very helpful. The money my mom lent me for the deposit was paid via my bank account directly to the estate agents who I deal with as I do not have any direct contact with the landlords. I wouldn't mind if the deposit was returned to my bank account and used to settle my debts. I am unsure what else of mine could be used in order to pay my debts with? I have a very old car so I'm guessing that would be sold for debt repayment? Other than that I have very little of any worth. Would they consider selling items such as my TV, iPod, iPad and stereo? I am trying to pay off one of the smaller credit cards as soon as possible. I don't think life insurance would be suitable for me at this time. Thank you all for your suggestions

buildersdaughter

Don't worry about debts after death at this point. Concentrate on clearing them so you can make the most of life. Who can help you? Do you have good friends / close family you can ask - not for money - but for support?
Loads of advice on here about living simply and saving pennies. Look around, and find what suits you. Take good care of yourself.