Insurance claim pre death

Undervalued

FiFiStup wrote: »

He had debt as he had an IVA in place. The claim is ongoing - we believe they offered a payout but he rejected this.
Do I have to go to probate then? or how do I apply for administration? (or my son)

This may sound harsh (sorry) but you need to establish if this IVA / debts will swallow up the insurance payout.

If so you may be better off financially doing nothing at all. Nobody can make you act as executor or indeed meet the cost of any funeral unless you choose to do so.

Silvertabby

Undervalued wrote: »

This may sound harsh (sorry) but you need to establish if this IVA / debts will swallow up the insurance payout.

If so you may be better off financially doing nothing at all. Nobody can make you act as executor or indeed meet the cost of any funeral unless you choose to do so.

Unless any of the debts were secured on a property (ie, mortgage) then the funeral costs come before any creditors, £3K may not cover the full cost, but it will be a great help.

OP - long shot, but worth investigating. Try asking the insurance company if they would be willing to make payment direct to the funeral director. They may ask you or your son to sign an indemnity, just in case the estranged son pops up and tries to demand the money. (If he did, then the money would have to be paid to the estate/used for funeral expenses, but an indemnity would absolve the insurance company of the hassle - it would be your son who who have to prove that the money was used for funeral expenses).

Undervalued

Silvertabby wrote: »

Unless any of the debts were secured on a property (ie, mortgage) then the funeral costs come before any creditors, £3K may not cover the full cost, but it will be a great help.

OP - long shot, but worth investigating. Try asking the insurance company if they would be willing to make payment direct to the funeral director. They may ask you or your son to sign an indemnity, just in case the estranged son pops up and demands the money (in which case he would be under no obligation to use the money to pay for the funeral).

OK, thanks.

Probably not directly relevant here but is there a maximum funeral cost to which this would apply?

Could executors arrange a wildly expensive funeral just to spite any creditors?

Silvertabby

Undervalued wrote: »

OK, thanks.

Probably not directly relevant here but is there a maximum funeral cost to which this would apply?

Could executors arrange a wildly expensive funeral just to spite any creditors?

I'm not aware of any actual figures - but I dare say that the cost of the funeral, plus mausoleum, plus an overseas wake for 200, wouldn't go down well with any creditors. Who may well be prepared to take the matter to Court.

FiFiStup

Silvertabby wrote: »

Unless any of the debts were secured on a property (ie, mortgage) then the funeral costs come before any creditors, £3K may not cover the full cost, but it will be a great help.

OP - long shot, but worth investigating. Try asking the insurance company if they would be willing to make payment direct to the funeral director. They may ask you or your son to sign an indemnity, just in case the estranged son pops up and tries to demand the money. (If he did, then the money would have to be paid to the estate/used for funeral expenses, but an indemnity would absolve the insurance company of the hassle - it would be your son who who have to prove that the money was used for funeral expenses).

Thanks for this The Co-op legal services (one of may phone calls I have made) - the chap I spoke to gave me free advice & he suggested an indemnity...… I wondered if anyone could guide me to an appropriately worded one for me to send signed etc to the insurers?


Or should the insurers provide one to fill in?


You have all been so very helpful.

brewthebear

Hi what is the position then with estranged son and the due insurance payout

Silvertabby

FiFiStup wrote: »

Thanks for this The Co-op legal services (one of may phone calls I have made) - the chap I spoke to gave me free advice & he suggested an indemnity...… I wondered if anyone could guide me to an appropriately worded one for me to send signed etc to the insurers?

Or should the insurers provide one to fill in?

You have all been so very helpful.

The insurers should supply the indemnity. The nearest actual example I can give is that when my sister died in hospital, she left £100 in the ward safe. I was her only sibling and would have inherited this under intestacy laws - but I just signed a hospital indemnity form absolving them from any claims from anyone else.

Silvertabby

brewthebear wrote: »

Hi what is the position then with estranged son and the due insurance payout

If this was a life insurance policy or a pension death grant then that would be paid to the lawful beneficiary and would be outside the estate. If this were the case, then estranged son would be the payee - and as it would be his money, it would be up to him to decide what to do with it.

In this case, however, this appears to be an outstanding personal injury claim. Any monies paid after the death of the claimant would be payable to the estate, and must be used to pay any outstanding debts. With the funeral costs taking priority.

lisyloo

brewthebear wrote: »

Hi what is the position then with estranged son and the due insurance payout

If the money goes to the funeral first and then debtors (if any left over) it doesn’t sound like there will be anything for beneficiaries.

Average cost for a cremation is £3247 (burial is higher) so £3k could easily be used for the funeral.

Undervalued

lisyloo wrote: »

If the money goes to the funeral first and then debtors (if any left over) it doesn’t sound like there will be anything for beneficiaries.

Average cost for a cremation is £3247 (burial is higher) so £3k could easily be used for the funeral.

Although I understand a "direct" cremation (i.e no service) can be arranged for a little over £1K.

That raises and interesting moral question over whether the family are more entitled to a funeral service or the creditors are more entitled to at least some of their money?

It seems the legal position is clear (possibly up to some undefined maximum) that the funeral comes first.