Support with insolvent estate

jackdholmes

Looking for some advice for my Mum please.

Her husband passed away and has left an insolvent estate. It's producing it's challenges in respect to financing the funeral but we have done tonnes of research and we think we are aware of all the potential opportunities to recoup some money.

However, one thing my family are struggling with and would like advice on is regarding credit card debt and payments.

There is around 5000 in debt on credit cards which are all solely in her husbands name. We therefore are under the impression that my Mum is not responsible for that debt. However, payments were being made from a joint account in both of their names. These were minimum payments of course but is that payment going from an account in both their names mean she is in someway responsible for that debt?

Any advice would so gratefully be received.

Many thanks.

Savvy_Sue

Did Dad or did they jointly own a house, or were they renting?

jackdholmes

They were renting. Both names are on the private rental.

Mum is going to have to move out because they cannot afford to live there and he only had a state pension.

xylophone

Your mother will advise the bank that the joint owner has died.

Any money in the account comes to her by survivorship.

If the credit card debt was in the deceased's sole name, then it is not incumbent upon your mother to pay it off.

She will need to advise the issuer of the cards that the holder has died.

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

Savvy_Sue

jackdholmes wrote: »

They were renting. Both names are on the private rental.

Mum is going to have to move out because they cannot afford to live there and he only had a state pension.

Then I agree with what xylophone says: it would have been different if there was a house involved.



I am sorry for your loss: I imagine that HAVING to move will be an additional grief. One thing is perhaps worth saying: council / housing association renting can be almost impossible to get, but their supported housing can be easier, because there is a regular turnover, as it were. Just a thought to explore.

Keep_pedalling

xylophone wrote: »

Your mother will advise the bank that the joint owner has died.

Any money in the account comes to her by survivorship.

If the credit card debt was in the deceased's sole name, then it is not incumbent upon your mother to pay it off.

She will need to advise the issuer of the cards that the holder has died.

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

When advising the creditors of the death she should also make it clear that the estate is insolvent and that neither she or anyone else is administering the estate.

Brynsam

Keep_pedalling wrote: »

When advising the creditors of the death she should also make it clear that the estate is insolvent and that neither she or anyone else is administering the estate.

It'll probably be hard for her; like so many people she will feel she 'ought' to do something. Please try to support her in doing exactly what the advice above says, however shirty creditors get (she can always invite them to wind up the estate).

jackdholmes

The joint account is well within its overdraft but I would assume Mum would be fully responsible for that debt?

You've all been so kind and helpful, it is overwhelming how kind people can be. Thank you.

I will look at the link provided too - thank you!

Undervalued

jackdholmes wrote: »

The joint account is well within its overdraft but I would assume Mum would be fully responsible for that debt?

You've all been so kind and helpful, it is overwhelming how kind people can be. Thank you.

I will look at the link provided too - thank you!

If it is joint then yes, I think so.

However she is not responsible for any debts that were entirely his and if there is no money then the creditors will have to go without. As others have said she should not feel that she has a responsibility to pay and I would certainly caution against paying some and not others.

xylophone

I have just noticed that we have all assumed that the parties live in England - that is the case?

From You and your
joint account

Produced by Building Societies' Association.


If there is an overdraft on the joint account when you die, the
bank or building society will apply to the person who is carrying
out the instructions in your will, and the other joint account
holder, to work out how the debt will be paid back. It may want
the other joint account holder to pay it off, for the money to
come from your assets, or a mix of the two.