Inherited debt

CGreen1970

Hello!

My brothers and I have inherited a small property from a deceased relative and have subsequently found that there appears to be some outstanding loans to the deceased. I haven't been in this position before so would appreciate any advice you guys could give regarding the processes involved.

Any recommendations on a solicitor (or type of solicitor) that would be best placed to give us advice on how to manage these debts?

Are these repayments negotiable? One lot of debt is from a company called "Link" and their balance is about twice as much as the amount of credit cited on their letters.

The other debt is from a company called Philips and Cohen and does not show the original loan amount.

Thanks for any advice in advance,

Chris

[Deleted User]

You don't inherit debt.

Any outstanding liabilities are paid out of the estate before any remaining assets are distributed.

The executor will deal with it.

MovingForwards

Any probate solicitor will be able to assist you, or do it for you, their fees will come out of the estate of the deceased.

The deceased owes the money, it's not outstanding to the deceased. The money will be payable from their assets eg the property, bank accounts, shares etc.

Highly doubtful Link will take a reduced settlement when there is a large asset eg the house 

Philips & Cohen usually act on behalf of a utility company eg the gas or electric. It's passed over to them on the death of the customer.

Norman_Castle

https://forums.moneysavingexpert.com/categories/deaths-funerals-probate

Debts should have been paid before distributing the assets. Who's the executor?

CGreen1970

Norman_Castle said:

https://forums.moneysavingexpert.com/categories/deaths-funerals-probate

Debts should have been paid before distributing the assets. Who's the executor?

My brother (well, it was him who did the probate process). There are no assets - other than the house. We only found out about the debts as there's letters through the door sadly.

Thanks for the very fast repies everyone

Norman_Castle

The house isn't available to be inherited until the debts are paid. If you want to keep the house you need to clear the debts.

https://www.gov.uk/probate-estate

Grumpy_chap

The debts need to be paid from the sale proceeds of the house.

I think, if the lender has been informed of the death, there is a rule that limits the amount that the liability can increase through interest and other charges.  I am not sure on these rules - someone else may be able to advise.

sourcrates

It depends what type of debts we are talking about, if they are utility bills, then no interest is added, same goes for consumer credit act debts, any secured loans will accrue interest untill settled.

If the debts exceed the value of the estate, then what is left will be written off, as no one else can be held liable.

Sounds to me like you need to get on top of this as soon as.

CGreen1970

Thank you. It's not absolutely clear on the letters as to the original nature of the debt (although a couple of them state the original agreement was with GE money consumer lending).

One is addressed to the executor of the estate and the others are to the deceased. Do they continue to accrue interest after death?

Grumpy_chap

CGreen1970 said:

Do they continue to accrue interest after death?

sourcrates said:

It depends what type of debts we are talking about, if they are utility bills, then no interest is added, same goes for consumer credit act debts, any secured loans will accrue interest untill settled.

Thrugelmir

CGreen1970 said:

One is addressed to the executor of the estate and the others are to the deceased. Do they continue to accrue interest after death?

They do. Sounds as if the probate exercise was performed properly. Seek advice.