Letters of Administration, now what ?

Safety1

Me again ! We’ve now had the letters of administration back from the solicitor, 
The deceased had debts of over £40,000 when they died. 

We’re really confused over the gross value v net and what happens to the debts now. Do we just send them a copy of the letter saying no money in estate or is the £7700 meant to be shared? 

Any advice appreciated as my dear friends widow really needs to get this part of the process closed . 

Thanks in advance 

SevenOfNine

The history https://forums.moneysavingexpert.com/discussion/6350009/estate-valuation-house-that-s-part-owned-debt-payment#latest

Alphatauri

the net the next value of the estate is £0.00 so there is nothing to share. The £7,700 has gone to repay the debts.

Send a copy with a note explaining this.

Keep_pedalling

So after all funeral costs expenses have been paid there is £7,700 left. All of this must be paid to the creditors on a pro rata basis. This must be done very carefully as getting it wrong could cost the administrator dearly. 

RAS

It might have been much better to have simply declined to administer an insolvent estate.

Who is paying the legal bill?

Safety1

Who is paying the legal bill?

The solicitor has covered the letters of administration as part of wider set of circumstances they are representing their client with . 

Ras, how can the family decline to be involved? Any tips? 

Keep_pedalling

Safety1 said:

Who is paying the legal bill?

The solicitor has covered the letters of administration as part of wider set of circumstances they are representing their client with . 

Ras, how can the family decline to be involved? Any tips? 

The client is presumably the administrator of the estate and it if far too late for them to back out, the rest of the family don’t have to do anything.

Safety1

To summarise in simple terms for me … 

if there was 10k gross and 5 debtors , one owed 10k and the others at 5k each 
the one owed 10k would get £3,333 and the others £1666 each ? 

If correct then a letter to them detailing how much they will receive with a copy of the letter of administration would be the next step ? 

getmore4less

Previous thread was left dangling with ownership status of the property and the status of the assurance etc.

Who has prepared the inventory and account for the estate?

Safety1

getmore4less said:

Previous thread was left dangling with ownership status of the property and the status of the assurance etc.

Who has prepared the inventory and account for the estate?

All details ( mortgage / life insurance etc) have been reviewed by the family's solicitor as part of the preparation for inventory. That side is sorted , it’s the what happens next that’s been left hanging 🤔