Debts after death

maxob

My husband recently died. We have a joint mortgage on our house. He had credit card debts in his sole name. Do i have to pay these debts with the life insurance policies of which i am the beneficiary? Do i also have to pay these debts with pension money of his which has been passed to me?

whitesmith

Can I first say on behalf of everybody on here we are sorry for your loss it must be a very difficult time in your life

You don't have to pay any outstanding debts but the executor does (of course you may be the executor)

 if the executor does not pay the estate's outstanding debts then they may become personally liable.

Alter_ego

A joint mortgage is a joint debt  His cc debts are a debt on his estate

sourcrates

Hi,
Sorry for your loss.
You are not automatically liable for your husbands debts, any money in his estate would be used to repay the debts in order of priority, any shortfall would not be your responsibility, any balance the estate cannot cover would be written off.

You may need to take legal advice.

tacpot12

I'm sorry you have lost your husband. Hopefully this information will help:

The mortgage would be the first priority as it is a secured loan. This link will help you understand the options with the mortgage: 
https://moneyfacts.co.uk/mortgages/guides/what-happens-to-a-mortgage-when-one-of-the-borrowers-dies/

Mickey666

sourcrates said:

Hi,
Sorry for your loss.
You are not automatically liable for your husbands debts, any money in his estate would be used to repay the debts in order of priority, any shortfall would not be your responsibility, any balance the estate cannot cover would be written off.

You may need to take legal advice.

True, but I’m guessing the husband’s estate includes half the equity in the joint house, which the OP is unlikely to want to sell in order to pay any outstanding debts.  Therefore, although it’s technically correct to say the estate debts are not the OP’s direct responsibility, in practice it may be that paying some of the estate debts is the only way to keep the house.  Hopefully, the life insurance policies mentioned by the OP will be enough to cover any debts that might otherwise require the sale of the house.

notquiteinclover

Mickey666 said:

sourcrates said:

Hi,
Sorry for your loss.
You are not automatically liable for your husbands debts, any money in his estate would be used to repay the debts in order of priority, any shortfall would not be your responsibility, any balance the estate cannot cover would be written off.

You may need to take legal advice.

True, but I’m guessing the husband’s estate includes half the equity in the joint house, which the OP is unlikely to want to sell in order to pay any outstanding debts.  Therefore, although it’s technically correct to say the estate debts are not the OP’s direct responsibility, in practice it may be that paying some of the estate debts is the only way to keep the house.  Hopefully, the life insurance policies mentioned by the OP will be enough to cover any debts that might otherwise require the sale of the house.

The house may have passed by survivorship though, if held as joint tenants - so not an asset of the estate technically.  

notquiteinclover

The mortgage passed to you but the debts didn’t. The life insurance policies don’t form part of the estate. I’d get legal advice and take all documents just to be sure, but don’t pay anything off yet. 

jonesMUFCforever

notquiteinclover said:

The mortgage passed to you but the debts didn’t. The life insurance policies don’t form part of the estate. I’d get legal advice and take all documents just to be sure, but don’t pay anything off yet. 

My understanding is that a life policy written in trust is not part of an estate and pension funds will also be outside his estate.
Whether the cards are written off will depend on the amount - just say he had card debts with Lloyds Halifax and BoS - they might decide to go for a charging order on the house if they are high enough.

whitesmith

It is certainly true that if the estate has funds, and the executor deliberately, wilfully and knowingly does not pay any outstanding debts of the estate, then they could become personally responsible in the future if it is discovered what they did.

The estate seems to have funds, and the card companies will certainly write a letter of condolence but also ask for the cards to be cleared, and unless the executor lies and says there are no funds then I cannot see how the executor will avoid having to comply.

UnderCanvas

I wonder if personal effects including house furniture, car etc. would also be classed as part of Husband's estate?  Would the CC companies ask for a value assesment of these items?