Sole trader death and debt liability

Keep_pedalling

thewickedpickett wrote: »

I suspect the MIL wants my wife to sort out all debts with her share of the joint account as left to her by the deceased. This will cover the debts. Just.

What should my wife do about current orders etc? She is ringing he bank and HMRC tomorrow to inform them.

Informing the bank and HMRC is next thing to do. She then needs to sit down with her mother to explain that her father has left her this mess to sort out and that she desperately needs her help. It would be a heartless mother indeed who not get her daughter out of this by clearing up the shortfall for what for her will be a trivial amount of money.

thewickedpickett

Thanks. I agree that’s the next step. A complicating factor is that it’s step mother....

We will see what happens I guess

Keep_pedalling

thewickedpickett wrote: »

Thanks. I agree that’s the next step. A complicating factor is that it’s step mother....

We will see what happens I guess

I feared that might be the case, unfortunately it seems your FIL was not only a poor businessman, but pretty useless at protecting his daughters financial interests. If the house is owned as joint tennants then he has effectively disinherited her and everything except some business debts goes to his wife.

Even if the house is owned as tennants in common his wife inherits the first £250k of his share plus 50% of the remainder, so the house needs to be worth over £500k for her to get a penny of his estate.

The first thing anyone with children getting remarried should do is make a will but as in this case they fail to do so.:(

Marcon

The next step is for your wife to take proper professional advice. Relying on this sort of forum, where nobody has seen any of the agreements and has very little to go on (even assuming the responders have the necessary expertise), won't get you the correct answer.

Yorkshireman99

thewickedpickett wrote: »

Thanks. I agree that’s the next step. A complicating factor is that it’s step mother....

We will see what happens I guess

The franchise company need telling immediately as well. Your wife needs paid for professional advice NOW!