Creditor claims against estate?

Keep_pedalling

db_york said:

p00hsticks said:

My understanding is that if property is owned jointly, then it passes directly to the survivor on the death, but half the value of it is be included in the estate. 

I'm not sure where that leaves the executor and beneficiaries if there are not enough other assets in the estate in the form of savings etc to cover all the debts owed..... 

I found this on national debtline site. "Each owner owns all of the (joint tenancy) property. When one owner dies, their share does automatically pass to the other owner. It does not form part of the estate available to creditors" . There may be something about IHT but it's the availability to creditors that is the concern 

There are no known creditors, it's the possibility of them appearing later that is worrying her

A creditor could apply to sever the tenancy to get their money back, however this rarely happens and only with very large debts that make the legal costs worthwhile. 

Why is she even using a solicitor? if the house is the only major assets it is likely that probate is not required. If she is the sole. Is she is the sole beneficiary  a notice in the LG is also a waste of time as it is done to protect the executor not the beneficiary.

Yorkie1

I may have missed this, but is she also the executor, or just the beneficiary?

Marcon

db_york said:

p00hsticks said:

My understanding is that if property is owned jointly, then it passes directly to the survivor on the death, but half the value of it is be included in the estate. 

I'm not sure where that leaves the executor and beneficiaries if there are not enough other assets in the estate in the form of savings etc to cover all the debts owed..... 

I found this on national debtline site. "Each owner owns all of the (joint tenancy) property. When one owner dies, their share does automatically pass to the other owner. It does not form part of the estate available to creditors" . There may be something about IHT but it's the availability to creditors that is the concern 

There are no known creditors, it's the possibility of them appearing later that is worrying her

That's a joint tenancy - it doesn't cover the position where a property is owned as tenants in common. It might do much to set her mind at rest if she (a) goes back to the solicitor and asks them to confirm and (b) she clarifies with the solicitor anything which is worrying her. They are best placed to set her mind at rest and will be used to dealing with clients, especially elderly ones, who are anxious and may therefore not follow things 'first time around'.

madbadrob

p00hsticks said:

My understanding is that if property is owned jointly, then it passes directly to the survivor on the death, but half the value of it is be included in the estate. 

I'm not sure where that leaves the executor and beneficiaries if there are not enough other assets in the estate in the form of savings etc to cover all the debts owed..... 

Incorrect.  If a property is owned jointly then on death of one part the other becomes total owner and the property is removed from the value of the estate.

If a property is held Tenants in common then you are correct half of the value becomes a part of the deceased estate.

In relation to the OP.

You are correct in some instances.

If posted in the Gazette (and a local paper) then after 6 weeks all debts should have been notified and dealt with.  Its called a statutory notice.  If this is not done then any debtors have 6 years from date of death to make the claim for a debt.  In both cases they should provide you with the proof of the debt and enough proof for you to be sure its a genuine debt.

I think this is where you are getting confused.

Your final line is incorrect 

Rob

user1977

madbadrob said:

p00hsticks said:

My understanding is that if property is owned jointly, then it passes directly to the survivor on the death, but half the value of it is be included in the estate. 

I'm not sure where that leaves the executor and beneficiaries if there are not enough other assets in the estate in the form of savings etc to cover all the debts owed..... 

If posted in the Gazette (and a local paper) then after 6 weeks all debts should have been notified and dealt with.  Its called a statutory notice.  If this is not done then any debtors have 6 years from date of death to make the claim for a debt.

The debt doesn't vanish just because there was a notice in the Gazette, the only legal significance is that it's generally deemed to be the minimum the executor needs to do as part of their due diligence to avoid personal liability.