Probate ?

dawnybabes

My husband (57) died 9 weeks ago.

we have wills where everything was left to me.  

He has a SIPP, death in service and old pension.  His only asset in his name is his car.  

As far as I understand the only thing in his ‘estate’ would be the car as everything else is outside the estate.  Would I need to do probate ? 

He’s left some credit card debt - can they insist on payment from the money outside the estate ?

Keep_pedalling

It does not sound like probate is needed. How much is the car worth, and how big is the debt.

dawnybabes

It’s a kit car so possibly 20k debt £25k 

morally I feel I should pay as I’ve got a large pot of money with everything included but people are telling me not too as his estate hasn’t got the funds.

Keep_pedalling

dawnybabes said:

It’s a kit car so possibly 20k debt £25k 

morally I feel I should pay as I’ve got a large pot of money with everything included but people are telling me not too as his estate hasn’t got the funds.

The legal situation is that his estate is insolvent, but even after funeral costs there are assets that are available to pay off part of that debt. This is straight  forward if there is only one creditor, but if this is across several creditors it becomes a bit more complicated. If for example funeral costs were £5k and he owed £25k on a single credit card, then as administrator of the estate, you write to the creditor explaining that the estate was insolvent and that there are only sufficient funds to clear £10k, and they would have to write off the rest. If it is spread across multiple creditors then the £10k would have to divided on a pro rate basis based on the amount each is owed and it is important that you get that right otherwise you could be held personable responsible for some of that debt if any of the creditors had not got the correct share. 

Normally the recommendation is not to administer an insolvent estate, but it is impossible not to when you have a £20k car to dispose of one way or another.

You may of cause simply pay it all off if you feel it is the right thing to do.

xylophone

Is there a property involved?
money.co.uk/money/cardsloans/article-1689651/Does-my-uncles-debt-die-with-him.html