Mum's partner died with debt...
Comments
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The life insurance plan he had been paying into only for a few months. It was sent to his mum but wouldn't have been enough to cover ay debts or funeral costs - just a few hundred pounds.
The reason I was asking was because if your mum had administered the estate and had paid out estate funds to beneficiaries without settling debts of the estate, your mum could have ended up liable.
If this is a life insurance policy that named his mum as beneficiary then I believe it passes outside of his estate.You keep using that word. I do not think it means what you think it means - Inigo Montoya, The Princess Bride0 -
Ok, if a life assurance plan is written in trust it's fine that money goes to the beneficiary of the policy. It doesn't form part of the estate. If it's not written in trust it does form part of the estate and should go to the loan companies first.
The few hundred left in his bank account should be used to partially clear any debts pro rata, advising the lenders there's no other money left.
Somebody walking off with "just a few hundred" is not the correct way to do things when there is money owed elsewhere.0 -
unholyangel wrote: »The reason I was asking was because if your mum had administered the estate and had paid out estate funds to beneficiaries without settling debts of the estate, your mum could have ended up liable.
If this is a life insurance policy that named his mum as beneficiary then I believe it passes outside of his estate.
Ah yes, this makes sense to me. His estate is basically non-existant as my mum has carried him financially since they met so I'm not sure if this changes things but I doubt my mum would therefore be liable for his debt. Thank you.0 -
PeacefulWaters wrote: »Ok, if a life assurance plan is written in trust it's fine that money goes to the beneficiary of the policy. It doesn't form part of the estate. If it's not written in trust it does form part of the estate and should go to the loan companies first.
The few hundred left in his bank account should be used to partially clear any debts pro rata, advising the lenders there's no other money left.
Somebody walking off with "just a few hundred" is not the correct way to do things when there is money owed elsewhere.
I agree, though this was only uncovered a couple of weeks after the life insurance plan had been paid out. We are unsure if the debt is still owed as the letters were from 2016 and we have no way of accessing his bank statements from the past to see if money was paid to this amount. But as it stands, there is nothing in his estate so just wondered if it was my mum's responsibility to pay (even though they were not married, did not share children or property etc).0 -
PeacefulWaters wrote: »Ok, if a life assurance plan is written in trust it's fine that money goes to the beneficiary of the policy. It doesn't form part of the estate. If it's not written in trust it does form part of the estate and should go to the loan companies first.
The few hundred left in his bank account should be used to partially clear any debts pro rata, advising the lenders there's no other money left.
Somebody walking off with "just a few hundred" is not the correct way to do things when there is money owed elsewhere.
Is that true in this case though, or do tax debts have priority over any others?Unless I say otherwise 'you' means the general you not you specifically.0 -
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You mum won't be liable. However, it's important that she doesn't get involved with dealing with any of his assets, as this can be 'inter-meddling' with an estate which. Simply telling people about the death, or passing documents to the executor or administrator is not inter-meddling.
I'd suggest that for any paperwork she finds, she passes this over to his mum (or sister) and that for anyone who contacts her, see simply explains that he has died, that she is not the executor or administrator and is not dealing with the estate.
She would only be liable for anything which was in the joint names of your mum and her partner, or for which she had signed a guarantee.All posts are my personal opinion, not formal advice Always get proper, professional advice (particularly about anything legal!)0 -
No your mum is not liable. She is not his next of kin and there was no estate to speak of. If any money he had went to his mum/sister then send the HMRC stuff there too.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.0
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You mum won't be liable. However, it's important that she doesn't get involved with dealing with any of his assets, as this can be 'inter-meddling' with an estate which. Simply telling people about the death, or passing documents to the executor or administrator is not inter-meddling.
I'd suggest that for any paperwork she finds, she passes this over to his mum (or sister) and that for anyone who contacts her, see simply explains that he has died, that she is not the executor or administrator and is not dealing with the estate.
She would only be liable for anything which was in the joint names of your mum and her partner, or for which she had signed a guarantee.
Thank you. This is really reassuring as this is what she has done so far. Other than arranging the funeral and notifying relevant people, she hasn't dealt with any of the money side of things.0
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