Advice please - Died with debts

forrester_2

HI all, I'm after some advice please as not sure which way to turn. I'll keep it quite simple.

Mum died 2 weeks ago
Mum and dad not married
Dad is not on the house deeds
House is worth approx 280K
Mum has £30k of debts (which nobody knew about including my dad)
There is a will, leaving everything to my dad, with me and brother as executer.

I know that probate is needed, and the debts will have to be paid.

Will I be able in theory to transfer the house to my dad, who will then take out an equity release loan to pay off the debt, or will debts have to be paid first? And therefore we may have to sell the house?

Thanks

Keep_pedalling

Tricky, because debts need to be paid before distributing the estate. Is there any way you and you brother can raid the funds to pay off the debt at least in the short term. If you and / or your brother have the ability to do that your father can pay you back once obtaining ER or you could make it a long term loan covered by a charge on the house.

If you can’t do that then it might be worth asking over on the mortgages board about obtaining ER in advance of moving the property into father’s name.

SeniorSam

You could speak with the debt company and arrange that the debt is secured on the property so they are safeguarded. If you do not have the money to pay off the debt, this can be a solution, but you will need to agree the costs and charges if the debt is to remain until your father passes on. Time is money.

The terms may be better than arranging loans, but compare the difference first and most of all, don't worry. It will be sorted out eventually and as long as you know about the debts, they can be paid off at a later date.

Have you considered that there may be other debts you are not aware of. The executors can protect themselves by placing the usual advertisement in the Gazette advising of the death and calling for any debts to become known. After a set period, the executors will be clear of any debts popping up at a later date.

shiraz99

You really need to speak to the companies involved with these debts to see what can be done, you never know some may just write the debt off.

shiraz99

SeniorSam said:

You could speak with the debt company and arrange that the debt is secured on the property so they are safeguarded. If you do not have the money to pay off the debt, this can be a solution, but you will need to agree the costs and charges if the debt is to remain until your father passes on. Time is money.

The terms may be better than arranging loans, but compare the difference first and most of all, don't worry. It will be sorted out eventually and as long as you know about the debts, they can be paid off at a later date.

Have you considered that there may be other debts you are not aware of. The executors can protect themselves by placing the usual advertisement in the Gazette advising of the death and calling for any debts to become known. After a set period, the executors will be clear of any debts popping up at a later date.

Placing a notice in the Gazette, whilst a good belt and braces approach doesn't in itself protect the executor, they still have to perform due diligence in chasing down any debts.