Credit card and mother in law death

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binnie
binnie Posts: 995 Forumite
edited 8 June 2017 at 4:55PM in Credit cards
Hi, Wonder if anybody could help please.
My mother in law has a credit card which was issued by Nat West got into debt and the debt went to Westcot July 2016 where she paid £1 a month.
As she has now passed away on Sunday my sister in law rang them and they said it would now be passed to Royal bank of scotland, which has puzzled us to why.
She offered to pay half of the money but they refused saying they wanted all of it.
Mother in law has no savings and her house has to be cleared to put up for sale which make a long while to sell.
Is there anything we can do to try and pay a lesser amount
The amount is £6,600, They also has added on an extra payment to cover car breakdown etc which was £20 a month but sister in law noticed that back in 2009 and stopped it. Her mother already had insurances so was miss-sold

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  • pvt
    pvt Posts: 1,433 Forumite
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    Did MiL have a will? Who is its executor? This would be a matter for them to deal with.


    Not sure why you feel the creditor would wish to settle for a lesser amount than that owed. Nor why your sister felt obliged to settle your MiL's debt.


    The correct procedure would be for the Executor of her will to wrap up all her affairs, including settling any debts, before any distribution to beneficiaries of any assets that are left.
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  • binnie
    binnie Posts: 995 Forumite
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    Thanks for your help. Never done this before so didn't know the correct procedure.
    My sister in law was going to settle the debt but with her mothers money, she only had £3,500 in the bank so offered that.
    So we shall wait until the house is sold to pay it all off
  • Yorkshireman99
    Yorkshireman99 Posts: 5,470 Forumite
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    binnie wrote: »
    Thanks for your help. Never done this before so didn't know the correct procedure.
    My sister in law was going to settle the debt but with her mothers money, she only had £3,500 in the bank so offered that.
    So we shall wait until the house is sold to pay it all off
    Don't be bullied into paying. You have no liability but if the is no will then the closest relative must apply for letters of administration to administer the estate. There is a separate forum for dealing with this.
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
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    First thing to be paid should be the funeral costs.
    There probably will not be much left over after that but any liabilities as at date of death have to be paid pro rata - you can't just decide to pay one and ignore any others.
  • unforeseen
    unforeseen Posts: 7,290 Forumite
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    jonesMUFCforever wrote: »
    First thing to be paid should be the funeral costs.
    There probably will not be much left over after that but any liabilities as at date of death have to be paid pro rata - you can't just decide to pay one and ignore any others.

    There is still the house to be sold, so probably enough to fully clear all the debts once that happens
  • bris
    bris Posts: 10,548 Forumite
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    The estate has to pay it, the house is part of the estate so there is no get out clause.


    The executer will also have to search for any other debtors if there is any before the estate can be settled. As already stated if there isn't enough money to pay everybody you don't just clear the CC, you pay them all pro rata.


    The executor needs to be very careful and precise as a bad decision can make them liable so get proper help if unsure.
  • Mojisola
    Mojisola Posts: 35,559 Forumite
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    binnie wrote: »
    Thanks for your help. Never done this before so didn't know the correct procedure.

    You'll get plenty of advice on the Deaths, Funerals & Probate Board.
  • Yorkshireman99
    Yorkshireman99 Posts: 5,470 Forumite
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    jonesMUFCforever wrote: »
    First thing to be paid should be the funeral costs.
    There probably will not be much left over after that but any liabilities as at date of death have to be paid pro rata - you can't just decide to pay one and ignore any others.
    As there is a house to be sold then the creditors will just have to wait but they are likely to get paid in full.
  • agrinnall
    agrinnall Posts: 23,344 Forumite
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    binnie wrote: »
    My mother in law has a credit card which was issued by Nat West got into debt and the debt went to Westcot July 2016 where she paid £1 a month.
    As she has now passed away on Sunday my sister in law rang them and they said it would now be passed to Royal bank of scotland, which has puzzled us to why.

    Because NatWest is one part of the wider Royal Bank of Scotland Group (and has been for over 15 years).
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