estate enquiry questions

joseph012

I've been approached by someone acting on estate- i'm sure they are executors? one of the questions posed to me was can anyone ie- creditors that are owed sums -can they force them to disclose what is in the exec account from insurance payout? the deceased did not go to probate -so nothing filled? no-one is aware of the payout except insurance company.- it was a small sum of around £6000 but the exec is trying to haggle with the creditors to get full and final settlements at much smaller amounts and hopefully leave some funds for the benificaries?
I have told them that no-one can except a court order? is that correct? and thee likely of a creditor owed a couple of hundred pounds will not do that.

any thoughts guys?

will the debts outstanding of around £8k -will they be open to offers of prob 25%-45% of the balances to settle full ?
any on had similar experiences i can share with this person? thanks

Olinda99

the executors can certainly try and haggle with the creditors but one thing they shouldn't do is lie to them

so for example if a creditor says how much is in the estate then the executor should answer truthfully otherwise it is fraud

The executors would then become personally liable for the debt

p00hsticks

The Executor needs to establish (if they haven't already) if the insurance payout actually forms part of the estate or not - it may not, in which case I don't see that there woudl be any obligation to disclose it (In fact, I'm not sure that the executor would necessarily need to be aware of such a payout legitimately made outside the estate). 

Keep_pedalling

In the majority of cases insurance payments fall outside of the estate. 

If there is nothing left in the estate after funeral costs have been payed then the creditors should be informing them that the estate is insolvent and that no one is administrating it.

Unfortunately is too late to do that now as trying to haggle with the creditors is intermeddling and the estate has a known administrator. If there are insufficient funds after the funeral costs have been met then each of the creditors should receive a partial  from the estate on a pro rata basis with any beneficiaries getting nothing.

Did the insurance policy pay out to named beneficiaries? If it did it almost certainly falls outside the estate.

Ignoring the insurance, how much is actually left after funeral costs?

joseph012

it wasnt left in trust apparently so to the estate - are the creditors likely to haggle if say 4k was told in balance and not 6k? using that 4k to full and final them all at reduced rates? so i guess they would have to take word from exec that there is only 4k left-rather than demand proof -which by sounds of it cannot be forced if the will /probate etc has not been actioned.
I can the intention of their actions -rather than say nothing left- at least pay most of ti and leave the family a little something

Emmia

joseph012 said:

it wasnt left in trust apparently so to the estate - are the creditors likely to haggle if say 4k was told in balance and not 6k? using that 4k to full and final them all at reduced rates? so i guess they would have to take word from exec that there is only 4k left-rather than demand proof -which by sounds of it cannot be forced if the will /probate etc has not been actioned.
I can the intention of their actions -rather than say nothing left- at least pay most of ti and leave the family a little something

But if they did this, and the payment was part of the estate then the executor would be lying - and would be responsible for the difference.

I understand the desire to have something to give the family, but the estate debts should be settled first.

joseph012

yeah i will advise them accordingly -thanks for your input people..

Brie

Do the creditors expect to be paid?  Some will write off a debt when someone dies, others will not.  I see nothing the matter with writing to them (if there's been nothing much said yet) and state "X has died.  It appears they owed money, can you provide an amount you will accept as full and final settlement?"

Marcon

joseph012 said:

I have told them that no-one can except a court order? is that correct? and thee likely of a creditor owed a couple of hundred pounds will not do that.

any thoughts guys?

joseph012 said:

yeah i will advise them accordingly -thanks for your input people..

Given that you've already given them incorrect 'advice', I wouldn't bank on them listening to you now, based on random strangers on an internet forum answering a question without knowing all the facts.

joseph012 said:

I've been approached by someone acting on estate- i'm sure they are executors? one of the questions posed to me was can anyone ie- creditors that are owed sums -can they force them to disclose what is in the exec account from insurance payout? t

If you're not even sure who you're dealing with, I'd step aside and let them take their own advice, particularly as they don't seem very clued up. Don't put yourself in the firing line.

Keep_pedalling

Hiding assets from the creditors is simply fraud. They may get away with it but it could back fire horrible leaving the administrator on the hook for the whole dept. The fact that they have already messed up by trying to haggle instead of walking away or distributing the estate as the law lays down for insolvent estates increases the risk.