widow needs DIY probate help re insolvent estate

JoMSE

Hello, My husband ( formerly self employed and retired) died after a period in care with dementia.
I have been doing the probate myself and have received the Grant of probate.  There is only a few thousand in the bank, no property, no anything else.  He had been paying back a Working Tax Credit overpayment to DWP and there will be a payment to the Council due for his last month of care. I understand I can get payment of funeral costs.   I am also retired and on Pension Credit. I have tried to get answers to several questions from citizens Advice, Age Uk and several free legal services but they either don't answer specific questions or are oversubscribed or have lost funding.  So, please can anyone answer the following?      Is putting a notice in The Gazette a good idea? Should I also get a box number to avoid giving out my address? Are these expenses recoverable? The estate will not have enough to pay
both DWP and the Council.  Who decides who gets what?  How long do I have to finish the process?  Any help appreciated. Thank you

Flugelhorn

re the Gazette - my understanding is that this only protects the executor from any claims from creditors but does not protect the beneficiaries - and you are both exec and beneficiary. You probably also know the finances well and hence probably no risk of there being any unknown debts

sourcrates

Moved to more appropriate board.

Keep_pedalling

The best option with insolvent estates is to walk away and not administer them. As he had no significant assets probate will not be required, have you actually applied for it? If you have you can no longer take the simple route outlined below. 

If you have not applied for probate and not touched any of his bank accounts then you need to do the following. If you have not done so already inform the bank of his death via their bereavement department, this will freeze his account, but you can still arrange for the funeral director’s invoice to be paid directly by the bank. 

Write to all the creditors you are aware of inform them of his death (include a copy of the death certificate) and tell them that the estate is insolvent and that no one is administrating it. Don't place a notice in the gazette. 

The first call on an estate is secured debt, which is not applicable here. Second is funeral costs, then unsecured debt and finally beneficiaries if anything is left. If there is not enough to pay unsecured debt then the creditors need to be paid on a pro rata basis. Get this wrong and the administrator can become responsible for the debt which is why the normal advice is not to administer the estate.

If it is too late to do that let us know and we will try to advise you as best we can. I think this thread is better placed in the deaths, funerals and probate board so I will ask the mods to move it. 

Savvy_Sue

Do you have a local Law Centre? Or have you tried Citizens Advice?
The answer to the 'who gets what' question is not necessarily straightforward. Don't rush to pay either: if you receive pressing 'reminders' about the debts I'd reply with a holding response that the estate is insolvent and priority of payments will take time to establish. 

Do you own or rent your house?

And I'm sorry for your loss.

JGB1955

Keep_pedalling said:

The best option with insolvent estates is to walk away and not administer them. As he had no significant assets probate will not be required, have you actually applied for it? I

If it is too late to do that let us know and we will try to advise you as best we can. I think this thread is better placed in the deaths, funerals and probate board so I will ask the mods to move it. 

The OP has already said that she has obtained probate.....

Keep_pedalling

JGB1955 said:

Keep_pedalling said:

The best option with insolvent estates is to walk away and not administer them. As he had no significant assets probate will not be required, have you actually applied for it? I

If it is too late to do that let us know and we will try to advise you as best we can. I think this thread is better placed in the deaths, funerals and probate board so I will ask the mods to move it. 

The OP has already said that she has obtained probate.....

Sorry, I miss read the opening post.

That makes things more complicated as she now has no choice but to deal with the creditors.

@joeMSE can you give us the gross and net numbers you used on the probate application and a breakdown of how much is owed to each creditor plus funeral costs please?