Do debts die with the deceased?

fellakel

Hi All,

I think this is the right board, if not , sorry.

Anyway, my Grandad died a few months back and we are sorting through everything finally. He had a few bills (gas, electric, etc) with large amounts outstanding.
Does my Dad (the only benficiary) inherit these debts or are they written off as part of the deceased estate?

dzug

If there is any money in the estate then the bills must be paid from it.

If there is insufficient to pay them then they are written off in whole or part.

dunstonh

They are paid by the executor of the estate from the cash within the estate or the sale of assets within the estate. After all liabilities have been settled, any surplus is then distributed to the beneficiaries.

JohalaReewi

If the debts are soley in your grandads name then it is as dzug and dunstonh said. The debts won't be inherited by your dad. If any of the debts are in joint names (and the other names are still alive), then they could still be liable if the debt is settled from the estate.

gee3er

My father died last week of cancer and we have since discovered an unsecured debt with a building society. My mother is distraught that they will make a claim on her property as there wont be enough money excluding the property to pay back the debt.

Would they have such claim? or does the debt get written off?

It also turns out that the building society were happy to lend him significant amounts while he was obviousy unwell (jaundiced and confused). He was admitted into hospital a week after taking out the loan.

dmg24

Sorry to hear about your father gee3er. Is the house in both your parents names, or just one? Did your father have any savings, either jointly or just in his name?

gee3er

the property is in both their name

therealdelboy

As joint tenants, or tenants in common?