Mum died leaving £1400 in debt- They said they'll wipe it if theres not enough in the estate but..

Briansteen50

Mum had a £1000 in an overdraft and DWP want £400 back.

She has a house which she left to me and it's valued at 140k.
She had zero savings and both the DWP and the bank have said they'll wipe it if there's not cash enough in the estate (Both know about the house).

However, she just got a refund on a life insurance policy as she didn't make it to a year. Its £425. It will be paid into my account next week. Stupidly i didn't think about it and obv it's part of HER estate.
Who should I pay this too? We haven't started probate yet and doing it ourselves next week as it's a non complicated estate.

Do I just split it or just give it to the DWP or to the bank? (Im guessing it would be DWP first?)

Keep_pedalling

How have funeral costs been covered?

Briansteen50

https://forums.moneysavingexpert.com/discussion/comment/81953592#Comment_81953592

She had a funeral plan already paid for. However, a few things haven't been covered and i'm paying for that. E.g transporting the body 200 miles to the plot, embalming. That comes to £450 in total. That's pretty much all of my savings. I have £600 of my own savings.

Keep_pedalling

Then I would allocate that money to cover the uncovered funeral costs which has priority over unsecured debts.

Briansteen50

https://forums.moneysavingexpert.com/discussion/comment/81953600#Comment_81953600

I'm sorry to sound dumb but would I not get in trouble for this for using funds from her estate on funeral costs rather than paying back debts even if they have said "we'll wipe them?" I always thought that it was Debts>Funeral>passing on Inheritance. costs. As if you didn't have enough for the funeral it's tough and you'd just have to sell the house for the funeral costs.

Keep_pedalling

https://forums.moneysavingexpert.com/discussion/comment/81953605#Comment_81953605

The order of the call of estate assets is secured debt, followed by funeral costs, then unsecured debt and finally beneficiaries, so no you won’t get into trouble.

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/6663137/mum-died-leaving-1400-in-debt-they-said-theyll-wipe-it-if-theres-not-enough-in-the-estate-but

Sorry for your loss.

Are you certain you have identified all bank accounts? It is just a householder with no working cash will be eternally challenged for regular bills or any maintenance needed.

How did your mother meet her day to day expenses?

Briansteen50

https://forums.moneysavingexpert.com/discussion/comment/81953613#Comment_81953613

Thank you so much for this. I've been so worried all bloody day! lol Honestly, thank you.

Briansteen50

https://forums.moneysavingexpert.com/discussion/comment/81953620#Comment_81953620

I lived with her and we used all our money to pay for bills etc. I did her banking and it's just the one bank. She closed her other accounts down when my father passed away 20 years ago.

I was her carer so had to give up work about 3 years ago. I will be returning to work in the next month. :)

Brie

I thought it was funeral costs first and then the rest but otherwise I agree with Keep_pedalling.

Ms_Chocaholic

Sorry to hear of your loss.

My understanding though was that her estate comprises all her assets - including the house so surely the debts will need to be paid from her estate.