At My Wits End

MumOf2

Just a word of caution - solicitors have a vested interest in criticising the knowledge or advice of lay people. They rely on potential clients for their income...

MumOf2

Malthusian

MumOf2 wrote: »

Just a word of caution - solicitors have a vested interest in criticising the knowledge or advice of lay people. They rely on potential clients for their income...

To be fair to the solicitor from whom the OP had a free consultation, they have tried to get rid of him ("the solicitor advised me NOT to have them undertake this"), so it doesn't appear they are trying to extract fees from him by rubbishing the correct facts stated here.

MumOf2

I stand corrected, Malthusian.

MumOf2x

Mackhie

xylophone wrote: »

I can assure you that where the proceeds of an insurance policy have been written in trust or a deed of gift has been executed, the proceeds are indeed paid to the beneficiaries outside the estate.

https://www.thebalance.com/must-life-insurance-be-used-to-pay-a-decedent-s-bills-3505232

I have had very recent experience of this as a relative of mine was an executor of an estate where the deceased was paying the premium of a policy the proceeds of which had been gifted - the proceeds were paid direct to the beneficiaries and did not touch the estate funds.

The life insurance policies were not in trust. I have been told this quite specifically and clearly by the insurance company, and as such such are considered part of the estate.

Mackhie

Middlestitch wrote: »

Quite. Your thread seems to be mainly populated by amateurs who are doing a bit of googling and then proudly trotting out bits of legal jargon which they don't really understand. It won't help you - so why do it?

Best advice yet!

mahharg

Hi Mackhie

Firstly sorry for your loss

I'm reading this with interest because I will expect to be an executor in the not to distant future.

I've been reading up on how to do certain things because to be honest I'm petrified for when the time comes.

Before you read further please understand that I'm not legally qualified in anyway shape or form. This is just my understanding. Hopefully I will be corrected if I'm wrong, then I've learnt something.

From what I've "googled" I understand that an ad in the paper is a good idea almost as protection. This ad should explain that anybody who has a vested interest in the estate must respond within x number of days. All costs associated with the estate, including the ad, solicitors fees and funeral fees are to be taken from the estate. You should not be left out of pocket.

Once the deadline in the ad has passed the amount claimed by creditors/individuals can be paid from the estate. If there is not enough for it all then it must be paid as a percentage ie if £10000 was claimed and only £5000 left in the estate then everybody gets half of what is owed.

If someone then claims after the ad deadline had passed, the ad is proof that you had made all reasonable attempts to contact everybody. Therefore nothing further will be owed and your liability will be zero.

I'm unsure if the priority debt v unsecured debt applies to estates.

https://www.thegazette.co.uk/all-notices/content/100081

I hope you get this stressful situation sorted and wish you well.

Mackhie

I don't know whether 'placing an ad in the paper' is sufficient. Placing a notice in The Gazette is your insurance against being caught out having to pay creditors that were previously not known about. Posting here (as well as notifying all KNOWN creditors) proves that you have taken sufficient measures to notify creditors.

The link is here. Use the 'Place A Notice' tab at the top. When going through the options, make sure that you tick as few options as you can get away with. I initially had a cost of something like £600 so I phoned them up and they told me to untick several options, reducing the cost considerably to something in the region of £70 (I can't remember the exact figure off-hand).

https://www.thegazette.co.uk/wills-and-probate/place-a-deceased-estates-notice

As to how the estate is distributed once everyone has been notified, yes, the are certain rules of priority (secured debts over unsecured debts etc). I have been rather fortunate and most of the debts have now been written off by the creditors. There are just two or three small debts (total about £300) that I have not heard back from the creditors about. If I don't hear from these soon I guess I'll have to have to contact them again. I would assume that no response means I might have to pay these few off, but I'll have to look into this, just to be sure.