Maybe problems of an executor

jittersandbang

My husband has been appointed executor of a relatives will. Problem is this family member has debts mainly to a bank but they have been frozen. The family member is not paying towards the debt but the bank is sending statements of the debt but is not perusing the debt as the relative is in no financial position to pay. I think there is another debt too but I'm not sure where but I don't think payments are being made to that either.
The relative has a house which is being left to an adult child and a small insurance which will be paid to the second adult child. 
What happens when the relative dies? Although details of debts aren't forthcoming will my husband be liable to get in trouble for any further debts not known about? I'm pretty sure it's not as straightforward as the relative thinks it is. 

doodling

Hi,

It is the executors job to use the deceased's assets to pay the deceased's debts.

If the debts are greater than the assets then the advice is usually to not take on the role of executor in the first place.

If it is necessary to sell the house to pay the debts then the executor might have to throw out anyone still living there (assuming that person doesnt have a right to stay there).  Your husband may not be happy doing that.

The decision as to whether to take on the executor role can be made after the death, potentially after your husband has had a chance to look at the deceased's paperwork and understand what is owed to who, it is not something that needs to be decided now.

Is your husband being left any money in the will?  Whilst some people would be happy doing the job because it is the right thing to do, others would be reluctant to spend the time sorting everything out if they aren't going to see any personal benefit.

If your husband definitely isn't going to do it then it is polite to tell the testator so that they can choose a different executor.

Marcon

jittersandbang said:

My husband has been appointed executor of a relatives will. Problem is this family member has debts mainly to a bank but they have been frozen. The family member is not paying towards the debt but the bank is sending statements of the debt but is not perusing the debt as the relative is in no financial position to pay. I think there is another debt too but I'm not sure where but I don't think payments are being made to that either.
The relative has a house which is being left to an adult child and a small insurance which will be paid to the second adult child. 
What happens when the relative dies? Although details of debts aren't forthcoming will my husband be liable to get in trouble for any further debts not known about? I'm pretty sure it's not as straightforward as the relative thinks it is. 

Might be better if your husband indicated to the relative that they don't feel they have the skills to be an executor - this sounds a recipe for trouble. An executor can be personally liable if they 'get it wrong', especially if there are debts which aren't dealt with correctly and in the 'right order'.

If there are two adult children, suggest that they are appointed as executors.

Marcon

doodling said:

The decision as to whether to take on the executor role can be made after the death, potentially after your husband has had a chance to look at the deceased's paperwork and understand what is owed to who, it is not something that needs to be decided now.

It's hard to assess the state of an estate without risking taking steps to start administering it (known as 'intermeddling') - and once you start, you have to complete the job. Far better to decline now while the testator is alive and competent to make alternative arrangements for executorship.

jittersandbang

My husband didn't realise what he was taking on until I explained about the debts and he asked the relative to appoint someone else but the relative mentioned to me a few weeks ago that nothing has been done about it. I have a feeling after paying these debts there will be nothing left for the second adult child leaving one child with a house, the other nothing.
I've only recently been thinking about this as I ponder on my own Will.
How does he decline the job? He's told him already to find someone else. 

jittersandbang

My husband is not benefitting any any way from the Will. Nor would he want or expect to. 
I am hoping the relative is saving towards a funeral as the adult children are in no financial position to pay it. One working part time, the other on benefits. 

Keep_pedalling

If an adult child is the main beneficiary then they would normally be the best choice of executor, is there any reason they would be incapable of handling it?

The debts would have to be pretty substancial if they would wipe out the value of a house. If it turns out that the estate is insolvent your husband can simply renounce his executor’s powers and have nothing to do with winding up the estate.

jittersandbang

Keep_pedalling said:

If an adult child is the main beneficiary then they would normally be the best choice of executor, is there any reason they would be incapable of handling it?

The debts would have to be pretty substancial if they would wipe out the value of a house. If it turns out that the estate is insolvent your husband can simply renounce his executor’s powers and have nothing to do with winding up the estate.

I'm assuming the relative didn't think the 'kids' weren't up to the job.

The debts won't wipe out the value of the house but will most likely wipe out the insurance money being left to 'child' 2.

The problem is, he has signed the document agreeing to the job. Is it too late to decline the role? 

doodling

Hi,

jittersandbang said:

[...]
How does he decline the job? He's told him already to find someone else. 

Declining is easy, he just doesn't do it and tells the beneficiaries and anyone else who asks that he isn't doing it.

Eventually someone else will decide to do it (usually a beneficiary) and at that point they will ask him to fill out a form from the probate office to tell them that he isn't doing it.  There is no formal process before that point.

Keep_pedalling

jittersandbang said:

Keep_pedalling said:

If an adult child is the main beneficiary then they would normally be the best choice of executor, is there any reason they would be incapable of handling it?

The debts would have to be pretty substancial if they would wipe out the value of a house. If it turns out that the estate is insolvent your husband can simply renounce his executor’s powers and have nothing to do with winding up the estate.

I'm assuming the relative didn't think the 'kids' weren't up to the job.

The debts won't wipe out the value of the house but will most likely wipe out the insurance money being left to 'child' 2.

It is likely that the insurance will not form part of his estate, in which case the house will need to be sold to pay the debt.

Normally it is a bad idea to leave a specific property to someone as by the time you die you may no longer own it. Was this will drawn up by a solicitor?

jittersandbang

Keep_pedalling said:

jittersandbang said:

Keep_pedalling said:

If an adult child is the main beneficiary then they would normally be the best choice of executor, is there any reason they would be incapable of handling it?

The debts would have to be pretty substancial if they would wipe out the value of a house. If it turns out that the estate is insolvent your husband can simply renounce his executor’s powers and have nothing to do with winding up the estate.

I'm assuming the relative didn't think the 'kids' weren't up to the job.

The debts won't wipe out the value of the house but will most likely wipe out the insurance money being left to 'child' 2.

It is likely that the insurance will not form part of his estate, in which case the house will need to be sold to pay the debt.

Normally it is a bad idea to leave a specific property to someone as by the time you die you may no longer own it. Was this will drawn up by a solicitor?

The Will was drawn up by one of these cut price/do away with a solicitor sort of job. They came to the house and writ it up and posted it out. The Will itself looked straightforward.