Probate and possible legal aid debts

hubb

KathysBoy said:

This is probably a statutory charge, that has been incurred through a case funded by legal aid where your mother gained a financial benefit.e,g divorce

This is the team you need to contact 

Secured Debt Team
Legal Aid Agency 1
PO BOX 10619
Nottingham
NG6 6DX
United Kingdom

Email

SecuredDebtTeam@justice.gov.uk

All enquiries relating to statutory charge cases or debts that have a security against a property.

I contacted via the email link and they tell me they need the will, death certificate and grant of probate which I haven’t got because I need to sort this debt out before I do so I have no idea how to proceed. 

Robert_McGeddon

I would send them copies of the will and death certificate. Do NOT send the original will - you'll need this to obtain probate.  Then say you intend to apply for probate but in order to do so need them to tell you how much they think is owed at the date of death. You'll need this to work out the value of the estate and if any IHT is due.

TBagpuss

"The last known letter from 2012 shows a balance of £2959.98 with the interest continuing at 33 pence a day." You should be able to work out the current debt from that.. You have 7 complete years from 2013-2019 so  7 x(365 x 33 ) which gives you £843.15. then work out the 33p per day from the date of the letter to the end of 2012, and this year from 1st Jan to now (or to the date of death, as appropriate) . I think the debt works on simple interest not compound, so you don't pay interest on the interest. - 
Alternatively they may be able to send you a redemption figure once they know that you are the executor (so once you have sent them a copy death certificate and copy of the will) 

The debt will have to be paid, it will not have lapsed or been forgotten just becuase it's been a long time, any more than a mortgage would have. 

KathysBoy

It seems to me that the charge may have been in force before 2007. The reason I say this is that you say the letter quotes the interest amount at 33p per day. The interest rate charged under the statutes of both the Legal Services Commission and their subsequent successor the Legal Aid Agency is 8%. On this basis, the debt was approx £1,500 plus simple interest of approx £120 p.a.

The figures estimated by TBagpuss are more or less correct. In my view the total of this calculation would be a reasonable estimate for probate purposes. I.e approx £3,900

hubb

Thanks folks, this is all very helpful. I will send them the death certificate and will scans and see what they suggest. As the estate is left to myself to split between siblings, there are no assets to speak of except the house which is estimated (by a recent estate agent) to go for around 160k. 

hubb

After paying via the Gov site via the link they sent me, I have had no confirmation of receipt which is worrying. In fact, they no longer reply to my emails when asking about this. I am referring to the email link posted in this thread.