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Mum died leaving £1400 in debt- They said they'll wipe it if theres not enough in the estate but..
Comments
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Yes - but some creditors may not be interested in trying to force a house sale for small amounts (£1000 and £400).
3 -
Thanks for clarifying
Thrifty Till 50 Then Spend Till the End
You can please some of the people some of the time, all of the people some of the time, some of the people all of the time but you can never please all of the people all of the time1 -
Exactly, if the house was being sold then they would probably just hold on for the depts to be repaid but where the house is the home of the only beneficiary the legal cost of pursuing this would far out way the small amounts owned and would not exactly be good publicity for the bank.
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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.
Reasonable funeral costs go before unsecured debt. You couldn't have an elaborate affair on an insolvent estate but in your case £450 doesn't sound unreasonable.
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.
Yes that's correct, you (or the executor) would ordinarily have to get the house sold for funeral costs or the debts if there was no other option. However in your case its perfectly valid to pay the funeral costs first from the cash given the order above, and then if that leaves the house which the bank / DWP are letting off the hook, that's their choice.
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Sorry for the late reply.
Sorry for the late reply.
One thing that is worrying me is if the person on the phone has misspoken. Everywhere I'm seeing says You WILL have to pay it back at some point even if they say you won't, even small amounts.
We're doing probate ourselves and obv has to list all of her debts. I'm slightly concerned that will come back and change at some point. :/1 -
Why are you applying for probate on an insolvent estate?
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It's not insolvent - she has a house valued at £140k which she left to the OP.
Perhaps they need probate to update ownership on the land registry?
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One question: Was the house in mum's sole name on the Land Registry, or are you named, too?
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