a minimal estate, what's the pecking order for costs?

nelsons_column

So, my question essentially is -what’s the pecking order of priorities when it comes to paying for stuff after someone dies and when there isn’t enough money in the estate to cover ‘everything’?

To add context, a relative passed away recently, I am next of kin. No will, and no assets beyond one bank account with about £2000 in it.

Undertaker and cremation costs, and a trimmed-down no-frills service at that, takes up all of the £2k.

There’s no taxes or legal fees to pay. Other costs-
- There’s a couple of weeks rent on the council house (approx £200). Our intention is to make sure that’s paid up in full.
- Electric/water bills etc – relatively small amounts, I can absorb those if required
- The council….

Oh my word, the council. They came to inspect the property this morning. To suggest they were ‘officious’ and lacking in any sort of empathy whatsoever would be understating the case a really quite considerable amount. I’m stressed enough as it is, and I sat down and cried after they left.
But my key issues – they’re going to be demanding charges from the estate for removal of literally anything at all left behind in the relatively-empty house, including all carpets (which, apparently, are a ‘trip hazard’…) and the hooks in the walls at £17.50 per hook, unless we remove them and put filler in the holes. Essentially, the bill could easily run into hundreds and an absolutely vast amount of my time and energy which is already running on empty. It would also be hundreds of pounds to get a clearance person to remove everything to the councils satisfaction.

So anyway – are funeral costs ‘reasonable expenses’ and high-priority for an estate and if after paying reasonable funeral costs, is the estate still liable for stuff like recharges from the council because we left some hooks on the walls and didn’t remove the stair and living room carpet? What happens where there is no money in the estate to pay for that? Are the next of kin legally obliged to pay up? Myself and my brother are not profiting or gaining anything out this at all. We will in fact be out of pocket a little bit (which for the funeral costs, we don’t mind, this is our mum after all)

I’ve looked up pages like this, https://www.moneysavingexpert.com/family/what-to-do-when-someone-dies?_ga=2.58784429.143728921.1524214089-2083433343.1521998301#estate (section 24 in particular), and this, https://www.citizensadvice.org.uk/family/death-and-wills/dealing-with-the-financial-affairs-of-someone-who-has-died/#h-if-the-amount-of-money-is-small, but it doesn’t quite answer the question I’ve posed here.

(Have tried phoning Citizens Advice, despite all the blurb saying “phone us up for free advice” they were curiously reticent about offering advice at all and said I should phone Age UK instead; the odd occasion I’ve used them in years gone by they were excellent)

Any advice, very very very much appreciated.

nelsons_column

Thanks for the response. My brain is just frazzled at the moment, so to clarify -
- It's acceptable to spend the £2000 available on funeral expenses as the priority cost?
- Legally, the council will have to accept that and remove the stair carpet and light fittings and whatever else from the house themselves, and not bother us with any bills for their removal?

lincroft1710

Sorry but I deleted my post as I may have not given the correct information

badmemory

A funeral is a priority debt. Although if there had been insuffiecient funds for that & no family member sorted the funeral then they would pay for it (either LA or NHS depending on place of death). If there are not sufficient funds to pay the debts, as long as the relative was the sole tenant, then the debts die with them.

Just hand in the keys and walk away. Difficult I know, but do not accept responsibility for any of the debts. They are not your debts!

carlislelass

I emptied dads house,what couldn't be moved(carpets) were left, put a note with keys in a strong envelope and put them through council letterbox. Never heard a thing

Silvertabby

Assuming things haven't changed in the last few years, this is what happened when my sister died.

She was on benefits (she really was ill!) and lived in a housing association flat. When she died, after being in hospital for a few weeks, I knew that her assets would be about £1K in unpaid benefits, plus the £500 she had in her purse. She was a discharged bankrupt, so I asked the Citizen's Advice Bureau who had first dibs on the £1.5K.

They told me that the order of priority was a mortgage, then the funeral.

No mortgage, and the funeral cost more than £1.5K (which I paid for). The housing association (and the gas and leccy) accepted my letters stating that there was insufficient money in the estate to pay any outstanding debts. You just have to be firm with them - if they think that they can con you into paying the debts, they will.

NordicNoir

Have a read of this, it should cover all you need to know:

https://bereavementadvice.org/topics/probate-and-legal/insolvent-estates

Keep_pedalling

The estate is in effect insolvent, so you should be very careful in how you handle this. You have already arranged the funeral, so you are responsible to see that bill paid. Banks will usually pay funeral costs from the deceased persons account so speak to the bank and FD to arrange arrange for that to happen. You will be responsible for any shortfall on this.

As that will clear the estate out then no other debt can be paid, so I would write to those organisations, informing them that the estate is insolvent, and that you are not administrating the estate.

You are not responsible for any depts owed by the estate. You can clear his council property if you wish, but they cannot bill you if you decide not too.

nelsons_column

thank you folks, this has been extremely helpful.

mac.d

Nothing to add in reponse to your query, but just wanted to say that having recently gone through a bereavement myself and having to deal with a company/organisation that is severely lacking in empathy, you have my sympathies. Hope you get things sorted ok.

nelsons_column

Yeah, it's amazing how ridiculously blunt and lacking in empathy people can be, when it's their actual job to deal with the bereaved. These council folk were making rather unfair demands of me whilst we were all stood in the house of my recently-deceased mother.

But thanks for the comment Mac. Even little things, like kind words from strangers on the internet do really help at these times, so the advice and support on threads like this does mean something.
I hope you've managed to navigate safely past your troublesome organisation.