Bereavement Support Payment form part of an estate ?

GrahamJohn717

Hello,  I'm helping on an estate that is currently showing more debit than assets . A solictor has been appointed who the family is comfortable with and things are moving along. My question is about a Bereavemt support payment which has been awarded at the higher rate to the widow in a initial lump payment and then 18 months of regular payments. She  has been sepreated for ten plus years but still married. there are no joint finances or shared property so all debit will go the estate on my understanding but  would the Bereavement payment need to go towards the estate to pay of debits ? I would assume not as the award benefit is paid directly to the widow  and would it be best to inform the solicitor who is dealing with the estate of the payment. Any advice most welcome. 

brewthebear

How did she get the benefit when she wasnt living with the deceased for 10 years ??

GrahamJohn717

They have two children hence the higher rate.
 

Marcon

By definition a bereavement payment is made after the death and is for the benefit of the living, so it cannot belong to/form part of the assets of the estate.

Keep_pedalling

Why pay a solicitor to manage an insolvent estate? The wisest thing to do was simply walk away and inform the creditors that no one is administering it. 

74jax

GrahamJohn717 said:

Hello,  I'm helping on an estate that is currently showing more debit than assets . A solictor has been appointed who the family is comfortable with and things are moving along. My question is about a Bereavemt support payment which has been awarded at the higher rate to the widow in a initial lump payment and then 18 months of regular payments. She  has been sepreated for ten plus years but still married. there are no joint finances or shared property so all debit will go the estate on my understanding but  would the Bereavement payment need to go towards the estate to pay of debits ? I would assume not as the award benefit is paid directly to the widow  and would it be best to inform the solicitor who is dealing with the estate of the payment. Any advice most welcome. 

If thethe estate is negative, who is paying the solicitor and why? 

GrahamJohn717

The estate as I mentioned is in a negative on paper with the assets that are currently known  but we are waiting on two bits of information that may yield a positive for the estate and the family which is why a solictor is involved in the administration.
From my conversations with the solictor all debts are paid in order of priority  with the solicitors fee and funeral cost's taken from the estate first and then all other debts after this is that not correct ? 
That was my thought as well on the Bereavement payment as Marcon mentioned I just wondered if anyone on the board had been in a similar position.
.

Keep_pedalling

GrahamJohn717 said:

The estate as I mentioned is in a negative on paper with the assets that are currently known  but we are waiting on two bits of information that may yield a positive for the estate and the family which is why a solictor is involved in the administration.
From my conversations with the solictor all debts are paid in order of priority  with the solicitors fee and funeral cost's taken from the estate first and then all other debts after this is that not correct ? 
That was my thought as well on the Bereavement payment as Marcon mentioned I just wondered if anyone on the board had been in a similar position.
.

I am not sure that solicitors fees take priority over the creditors. Yes they may be part of the executors  expenses, but If the estate is insolvent a creditor could quite rightly claim that the executors expenses are excessive and pursue them for restitution.

Administering insolvent estates can seriously damage your wealth.

74jax

GrahamJohn717 said:

The estate as I mentioned is in a negative on paper with the assets that are currently known  but we are waiting on two bits of information that may yield a positive for the estate and the family which is why a solictor is involved in the administration.
From my conversations with the solictor all debts are paid in order of priority  with the solicitors fee and funeral cost's taken from the estate first and then all other debts after this is that not correct ? 
That was my thought as well on the Bereavement payment as Marcon mentioned I just wondered if anyone on the board had been in a similar position.
.

So if these 2 other bits of information don't materialise, why on earth would you pay a solicitor. It doesn't make sence.
It all seems so back to front.
Don't forget the solicitors get paid regardless, from the estate if possible or from whoever instructed them, so they'll keep working regardless ....