Statute barred debt for a deceased relative.

LavenderKuromi

Ok, I can put this to the Executor, thank you.

RAS

Trusts are special beasts. It may be that the deceased and their estate never own the house because it passes directly to the remaindermen. Or it could be something else.

The executor needs to take proper advice from someone with trust experience before they do anything other than arrange the funeral. If the estate is insolvent, then they should back out and just let creditors know the fact.

ManyWays

@sourcrates

In this country, any debts of a deceased person are not automatically exempt under the limitation act.Instead, the deceased`s liability to repay a debt transfers to their estate, provided the estate is not insolvent.

This is not correct.

It is true that there is no specific exemption for statute barred debts for an executor. But the general principle still applies, that these debts are unenforceable on court and so do not need to be paid. And the same applies to situation where a creditor is unable to produce the CCA agreement ofr the debt.

If this was not the case, then every debt adviser giving advice on when a debt is statute barred would have to caveat it by saying that when you die the debt has to be settled by your estate. That does not happen.

sourcrates

@Manyways

Debts do transfer to the deceased's estate, I am positive on this as I have been an executor.

Just for the sake of clarity, I did add next that:

"If funds do exist, you can by all means claim its statute barred status, most of the time they will not pursue such debts".

ManyWays

They are still legal debts. That does not mean they are no longer statute barred, or they need to be paid…

@fatbelly what do you think?

MayDogsandCoffee

If he was without heating and hot water for 6 years then he has been failed by more than social services and the attention should have been taken while he was alive. Why so keen to have debt sorted now, it won't improve things for the deceased.

BigRob2d

I have a similar situation whereby we have had a debt recovery company try to pursue the estate for a debt held since 2005. However, they can provide no evidence of what this is for and there are no records anywhere in my relative's paperwork (we found a range of bills for other debts that we have cleared).

I have stated that I am not comfortable paying the debt from the estate if they can't provide evidence of the actual debt itself… given that it is so old, they are saying they don't have any records. Would we legitimately be able to refuse to pay this?

Grumpelstiltskin

Yes under no circumstances pay this.

sourcrates

https://forums.moneysavingexpert.com/discussion/comment/82078636#Comment_82078636

Yes of course you can refuse to pay, a creditor pursuing a debt MUST be able to provide evidence of liability when asked, otherwise any old Tom, !!!!!! or Harry can come chasing you for money.

No proof equals no debt, the same applies if it went to court, its as simple and as difficult as that.

ManyWays

I agree with @sourcrates.

In addition to asking for proof of the debt, you should also ask for evidence of the last payment made. If you have the bank statements for the last 6 years and cannot see any payments in there, the debt may be unenforceable as being statute barred.

National Debtline on 0808 808 4000 can talk to you about statute barring if you want to know more.