StepDad died sorting his affairs out

Sarahdol75

Hi all.

My stepdad died on 10 November and I am trying to sort everything out.

He has a will, mirrored with with my mum.

The house is in Tenants in Common.

He has debts on credit cards totalling around £9 000.00.

The house is work £160 000.

My mum says the house is 75% share hers, as it was a council house before she got together with my step dad.

They still have a mortgage roughly around £32 000.00

Mortgage Life insurance cover has paid out £18 000.00, as my mum seems to think this is what they bought the house for, and then few years ago, they borrowed another £15 000.00 to do some repairs to the house.

Now I can only presume, that my stepdad, didnt cover the payment to take this into account, thats why they have only paid out £18 000.00.

Life assurance have paid out to my mum aswell, still waiting on pension.

They are not married, but been together for 36 years.

Do I need to do probate? I am being told by some people yes I do need probate then others saying no as I have a will.

Getting confused.

Tom99

Does his will leave everything to you mum?
You do not need probate to transfer the house into just her name but stepdad's debts will need to be paid from his estate.


https://www.gov.uk/government/publications/devolution-on-the-death-of-a-registered-proprietor/practice-guide-6-devolution-on-the-death-of-a-registered-proprietor

Sarahdol75

Tom99 wrote: »

Does his will leave everything to you mum?
You do not need probate to transfer the house into just her name but stepdad's debts will need to be paid from his estate.


https://www.gov.uk/government/publications/devolution-on-the-death-of-a-registered-proprietor/practice-guide-6-devolution-on-the-death-of-a-registered-proprietor

Yes everything is left to my mum.

There is not enough cash value to pay the debts off.

I was told the credit card companies may put a charge on the house, if they cant be paid straight away. Then if my mum wants to sell later on, they will get paid when house is sold.

Tom99

Sarahdol75 wrote: »

Yes everything is left to my mum.

There is not enough cash value to pay the debts off.

I was told the credit card companies may put a charge on the house, if they cant be paid straight away. Then if my mum wants to sell later on, they will get paid when house is sold.

You might want to take advice on that, unless you agree I would imagine the CCCo would need a Court Order to put a charge on the house. Also will interest accumulate and if so at what rate? Some CC interest rates are very high.

Sarahdol75

I have written to all companies involved informing them, we are dealing with his affairs, and to hang fire, and to stop all interest as from date of death.

Dox

Tom99 wrote: »

Does his will leave everything to you mum?
You do not need probate to transfer the house into just her name but stepdad's debts will need to be paid from his estate.


https://www.gov.uk/government/publications/devolution-on-the-death-of-a-registered-proprietor/practice-guide-6-devolution-on-the-death-of-a-registered-proprietor

I think you may have overlooked the fact that they weren't married and the property wasn't held on a joint tenancy. An easier to digest read is this link: https://www.citizensadvice.org.uk/family/death-and-wills/dealing-with-the-financial-affairs-of-someone-who-has-died/#do_you_always_need_probate_or_letters_of_administration

As you can see, it says the following: 'if the partners are tenants in common, the surviving partner does not automatically inherit the other person's share. Probate or letters of administration will be needed so the personal representative can pass it whoever will inherit the share of the property, according to the will ..... '

Sarahdol75

Dox wrote: »

I think you may have overlooked the fact that they weren't married and the property wasn't held on a joint tenancy. An easier to digest read is this link: https://www.citizensadvice.org.uk/family/death-and-wills/dealing-with-the-financial-affairs-of-someone-who-has-died/#do_you_always_need_probate_or_letters_of_administration

As you can see, it says the following: 'if the partners are tenants in common, the surviving partner does not automatically inherit the other person's share. Probate or letters of administration will be needed so the personal representative can pass it whoever will inherit the share of the property, according to the will ..... '

So I do need probate then, as property is tenants in common.

I have read that aswell, somewhere else.

I keep being told as there is a will, probate is not needed, this is why I thought I would ask on here, aswell, another persons perspective on it.

Keep_pedalling

I would try and avoid getting a charge put against the house compound interest is going to be punishing in the long term. Better to get rid of the unsecured debt and maintain more of the mortgage dept which will be a lot cheaper.

Does his pension pay out a lump sum on his premature death?

Keep_pedalling

One more question, you mum says she owns a 75% share, but was this formalised with a declaration of trust?

Without that I believe ownership is assumed to be 50/50.

Mojisola

Sarahdol75 wrote: »

I keep being told as there is a will, probate is not needed

Probate is what gives the executors the authority to distribute the estate according to the will.

There can be occasions when there is a will but probate isn't needed, for instance, if all the money and property is owned jointly with another person or if the estate is very small.

getmore4less

Dox wrote: »

I think you may have overlooked the fact that they weren't married and the property wasn't held on a joint tenancy. An easier to digest read is this link: https://www.citizensadvice.org.uk/family/death-and-wills/dealing-with-the-financial-affairs-of-someone-who-has-died/#do_you_always_need_probate_or_letters_of_administration

As you can see, it says the following: 'if the partners are tenants in common, the surviving partner does not automatically inherit the other person's share. Probate or letters of administration will be needed so the personal representative can pass it whoever will inherit the share of the property, according to the will ..... '

Like a lot of sites this is wrong.

It may still be worth getting probate for other reasons.

If mum gets everything and they were not married some IHT planning may be worth while as there is no transferable nil rate band.