Renouncing insolvent estate

jonnyb1978

As a named executor in a will, I made preliminary enquiries into two life insurance policies that would make most of deceased' assets.

Apparently they were cancelled at some stage so there is literally nothing but a few quid laying around their home. Housing Association home and personal possesssion of no value.

Liabilities will include rent for the time to clear the home, utilities and possible a credit card. Also to pay back any DWP payments since the death.

Funeral will have to be paid by out of families pocket. 

I don't want to be liable for debts etc. So is renouncing the best option. If I do this there, do I need to send will along with the form as I will have no need for it any more. Will the probate registry conform they have received it OK. 

Should I then send letters to creditors explaining the death and nobody is currently dealing with estate?
Thanks

Brie

I didn't think one needed to renounce being an executor if the estate is insolvent.  All it requires is notifying the creditors that there's nothing available for them and that's the end of it.  It's not your estate so it's not your debts.  Neither are they the debts of any other family member or friend.

The local council could do a "pauper's burial" if the family doesn't have the money but that's a no frills with no guests deal.   

Keep_pedalling

Probate will not be required so you need to do bother other than inform the family and any creditors who crawl out of the woodwork that the estate is insolvent and that no one is administrating it.

Flugelhorn

you wouldn't be liable for the debts - if the estate is insolvent then they can't be paid. 

if family want to clear the property and pay for the funeral then that is fine but they don't have to - you just need a standard letter stating that the estate is insolvent and there are no assets 

Silvertabby

If the estate is literally 'just a couple of quid' (which may be put towards the funeral expenses) then just hand the keys back to the HA and walk away.  This will prevent any accusations of selling any valuables from the flat, and misappropriating the proceeds.

And don't believe the HA when they try to tell you (and they will!) that the nok are legally obliged to clear and clean the flat before handing the keys back.  My late sister's HA tried this on with me, but I just called his BS and walked away.  Never heard anything more from them.

jonnyb1978

Thanks for the advice.

So if I inform the creditors there is nothing, will I need to get final statements from utilities, bank, Housing Association etc and make a set of estate accounts and also put a notice in the gazette etc 

Or will this all be totally pointless. 

RAS

No, you just write to those you can identify and say the estate is insolvent. If they wish to administer the estate, they are welcome.

PS you can legitimately collect any appropriate documents and offer the carrier bag to potential admins, as long as you don't try to settle debts etc.

jonnyb1978

Thanks. What should I do with the will once handed to me?
Surely I can not just ignore it 

Savvy_Sue

jonnyb1978 said:

Thanks. What should I do with the will once handed to me?
Surely I can not just ignore it 

Yes, you can. If anyone expresses interest in executing, repeat 'there's no money but there is a will, would you like it?'

artyboy

jonnyb1978 said:

Thanks. What should I do with the will once handed to me?
Surely I can not just ignore it 

You most certainly can! Although might be worth a peek in case there are any Swiss bank accounts mentioned in it...

doodling

Hi,

jonnyb1978 said:

Thanks. What should I do with the will once handed to me?
Surely I can not just ignore it 

Basically yes, you do.

You do nothing at all.  If you want to, you can pick up any cash at the property or in bank accounts and put it towards the funeral but don't take anything else.  (Taking cash for the funeral is not intermeddling, but taking control of property would be, even if the intent was to sell it to pay for the funeral).

It would be polite to tell people who might need to know (e.g. the HA or creditors)  that the deceased is deceased but you are under no obligation to do that.  If you have the keys to the property then give then to the HA and walk away (as others have said, you are not responsible for clearing the property or paying rent).

If any creditors get in touch with you then you can choose to tell them that there is a will but no executor (as the executors have renounced) and if they wish to administer the estate then you would be happy to send the will to them on receipt of a written request to do so so that they can administer the estate themselves.  If any creditor does this then include the words "I have renounced my role as exexutor" in the covering letter to avoid any possible misunderstanding.  Do not let yourself feel pressured to respond to letters from creditors if you don't want to - you are not the executor so it isn't really anything to do with you.

You don't even need to worry about the funeral if you don't want to, you could just let others worry about that (e.g. the state if no-one wants to pay) but in that case dont take any money from the estate.