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Credit card payments on death
Comments
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Some idea of the scale of the debt and value of the land would help in finding a practical solution.0
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It's been asked several times - what were the value of the credit card debts, and what might the approximate value of the land be?
The credit card debt doesn't disappear because there's no cash, although if the value of the debt is relatively small, some companies might choose to write it off rather than pursue a legal option.
If the debts are significant though, you'll have to negotiate some kind of settlement.0 -
fatbelly said:Credit cards are always sole name.
I believe the advice you are being given is technically correct.
If there are genuinely no other assets (no cash, no savings, no bonds, no goods, no insurance policies) then you & mum may wish to offer the credit card lenders a sum that will satisfy them
CC debts in sole name but all other cash-like assets in joint names with the wife so they automatically become the wife's on the death of the husband.
Otherwise very odd that the individual would have no income and no assets of any kind other than some land. Then the credit card debts. Had the individual survived to the next statement, how would the CC have been paid?
How large are the CC debts?
How much is the land worth?
If the Estate is insolvent, this will impact the advice that will be given.0 -
With the property thing, the actual ownership is important... if it was jointly owned (in the right way) the land passes to the wife and can't be called on to settle a debt.
It doesn't sound like that was the case here... but proper advice is needed. The estate would need to engage a solicitor (maybe difficult, if there isn't much in the way of assets apart from the land).0 -
The credit card debt is approx £6,000 in total. The value of the land would more than cover this and there is a small amount of cash in the bank. There is no funny business going on as has been suggested previously. My dad was ill for a while before he died and therefore did not do any farming, sold equipment and stock to pay for his and mums basic living costs with the help of the family. I have now got to look at distribution of the estate and cash available to pay funeral costs which are legally the first to be paid. From the will mum gets the farm land but the will states she can not sell it. So with regard the distribution of cash and assets my question is can we legally go against the will and sell the land to pay the debt or as there is not enough physical cash in the estate do the credit card debt get written off. The land was in dad's sole name and gets passed to mum on death. Finally, again as suggested previously there are probably some spelling mistakes in this post for which I am truly sorry but if you are not able to give advise on my query please stay off the thread. For all these that are giving advise on the query I really do thank you.0
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You can't, legally speaking, protect your assets in the way you are suggesting.
But you need to find a sensible and proportionate way through this. Obviously the first call on the cash is the funeral expenses.
Is there then anything left?
Try putting that to the credit card companies as final settlement. They are used to taking a hit. It's why they charge 25-35% interest0 -
Why would the credit card company do anything other than ask whether there are assets to cover the debt (there are and the OP would be well advised to answer honestly) and therefore ask for the debt to be settled from the estate? If it was under £100, for example, I could see why they might, but £6K?
OP, could the family rally round to help your mum out, to settle the debt, and then she pays you all back over time? That way she keeps the land (I assume it has some emotional value).0 -
NorthIrish said:The credit card debt is approx £6,000 in total. The value of the land would more than cover this and there is a small amount of cash in the bank. There is no funny business going on as has been suggested previously. My dad was ill for a while before he died and therefore did not do any farming, sold equipment and stock to pay for his and mums basic living costs with the help of the family. I have now got to look at distribution of the estate and cash available to pay funeral costs which are legally the first to be paid. From the will mum gets the farm land but the will states she can not sell it. So with regard the distribution of cash and assets my question is can we legally go against the will and sell the land to pay the debt or as there is not enough physical cash in the estate do the credit card debt get written off. The land was in dad's sole name and gets passed to mum on death. Finally, again as suggested previously there are probably some spelling mistakes in this post for which I am truly sorry but if you are not able to give advise on my query please stay off the thread. For all these that are giving advise on the query I really do thank you.
I'm presuming the land was in your dad's sole name?All shall be well, and all shall be well, and all manner of things shall be well.
Pedant alert - it's could have, not could of.0 -
How much land and what sort of division of land is there (e.g. number of fields) etc.? You say the land is worth more than the debt, I would assume that would be significantly more? So the assets far outstrip the small debt.
A bordering farmer, or property owner, may be willing to purchase a small part of this land that would more than resolve the debt while keeping the bulk of the land within your family and giving a bit of extra cash to your mother. Personally, as executor, I would probably try negotiating with the credit card company to see if they would accept a lesser amount as full and final settlement and then pay that off, within the family (would be a lot cheaper than having to get solicitors involved).
Past caring about first world problems.0 -
IvanOpinion said:How much land and what sort of division of land is there (e.g. number of fields) etc.? You say the land is worth more than the debt, I would assume that would be significantly more? So the assets far outstrip the small debt.
A bordering farmer, or property owner, may be willing to purchase a small part of this land that would more than resolve the debt while keeping the bulk of the land within your family and giving a bit of extra cash to your mother. Personally, as executor, I would probably try negotiating with the credit card company to see if they would accept a lesser amount as full and final settlement and then pay that off, within the family (would be a lot cheaper than having to get solicitors involved).
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