Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • Sirlaughalot
    • By Sirlaughalot 8th Mar 18, 8:29 AM
    • 268Posts
    • 584Thanks
    Sirlaughalot
    No funds in the estate how do i inform creditors?
    • #1
    • 8th Mar 18, 8:29 AM
    No funds in the estate how do i inform creditors? 8th Mar 18 at 8:29 AM
    I`m helping me Sil who is the executor of my brother's estate. There are no funds left to pay off debts so how do we inform creditors? Is there a template we can use to send out to companies/ organizations to let them know of the situation?

    Thanks in advance
Page 1
    • Keep pedalling
    • By Keep pedalling 8th Mar 18, 9:02 AM
    • 5,004 Posts
    • 5,567 Thanks
    Keep pedalling
    • #2
    • 8th Mar 18, 9:02 AM
    • #2
    • 8th Mar 18, 9:02 AM
    What did the solicitor say when you took the legal advice everyone was telling you to do on your previous thread?
    • Sirlaughalot
    • By Sirlaughalot 8th Mar 18, 9:18 AM
    • 268 Posts
    • 584 Thanks
    Sirlaughalot
    • #3
    • 8th Mar 18, 9:18 AM
    • #3
    • 8th Mar 18, 9:18 AM
    What did the solicitor say when you took the legal advice everyone was telling you to do on your previous thread?
    Originally posted by Keep pedalling
    Said that the legal side of the family asset trust was sound and to go ahead with the finalisation of the estate
    • Keep pedalling
    • By Keep pedalling 8th Mar 18, 9:25 AM
    • 5,004 Posts
    • 5,567 Thanks
    Keep pedalling
    • #4
    • 8th Mar 18, 9:25 AM
    • #4
    • 8th Mar 18, 9:25 AM
    Said that the legal side of the family asset trust was sound and to go ahead with the finalisation of the estate
    Originally posted by Sirlaughalot
    Was the solisitor actually told the loans were spent on enhancing the property placed in the trust. Sorry but this still sounds as dodgy as hell, and I would not touch. It with a very long barge poll.
    • Sirlaughalot
    • By Sirlaughalot 8th Mar 18, 9:32 AM
    • 268 Posts
    • 584 Thanks
    Sirlaughalot
    • #5
    • 8th Mar 18, 9:32 AM
    • #5
    • 8th Mar 18, 9:32 AM
    Was the solisitor actually told the loans were spent on enhancing the property placed in the trust. Sorry but this still sounds as dodgy as hell, and I would not touch. It with a very long barge poll.
    Originally posted by Keep pedalling
    That`s fine you are entitled to your opinion. We have been to the citizen's advice bureau and a local solicitor now and neither has been over alarmed so we will just have to finalize the estate and see what happens on the legal side.

    But thanks for your advice
    • Keep pedalling
    • By Keep pedalling 8th Mar 18, 9:43 AM
    • 5,004 Posts
    • 5,567 Thanks
    Keep pedalling
    • #6
    • 8th Mar 18, 9:43 AM
    • #6
    • 8th Mar 18, 9:43 AM
    Just remember administering an insolvent estate can make you responsible for the debts unless you do everything by the book. If I was a creditor in this case I would be concerned that a fraud had taken place.
    • Yorkshireman99
    • By Yorkshireman99 8th Mar 18, 10:35 AM
    • 4,152 Posts
    • 3,394 Thanks
    Yorkshireman99
    • #7
    • 8th Mar 18, 10:35 AM
    • #7
    • 8th Mar 18, 10:35 AM
    That`s fine you are entitled to your opinion. We have been to the citizen's advice bureau and a local solicitor now and neither has been over alarmed so we will just have to finalize the estate and see what happens on the legal side.

    But thanks for your advice
    Originally posted by Sirlaughalot
    It is difficult to understand if you have been to the CAB and a solicitor why you are now asking for advice here. Either we have not been told the full facts or the CAB and solicitor have not been told either. Neither the CAB or a competent solicitor would suggest administering an insolvent estate. If you are determined to do so all you need is to tell each creditor the estate is insolvent and they will not be paid. No need for any template.
    • Sirlaughalot
    • By Sirlaughalot 8th Mar 18, 1:11 PM
    • 268 Posts
    • 584 Thanks
    Sirlaughalot
    • #8
    • 8th Mar 18, 1:11 PM
    • #8
    • 8th Mar 18, 1:11 PM
    It is difficult to understand if you have been to the CAB and a solicitor why you are now asking for advice here. Either we have not been told the full facts or the CAB and solicitor have not been told either. Neither the CAB or a competent solicitor would suggest administering an insolvent estate. If you are determined to do so all you need is to tell each creditor the estate is insolvent and they will not be paid. No need for any template.
    Originally posted by Yorkshireman99
    Thanks, i now know nothing else is expected to be paid into the estate so i can communicate with the creditors and explain there is no funds in the estate. Just looking for a template that i could use to look a bit more professional. But i think i have one now from Macmillan support.

    Thanks again for your help
    • Sirlaughalot
    • By Sirlaughalot 18th Mar 18, 7:50 AM
    • 268 Posts
    • 584 Thanks
    Sirlaughalot
    • #9
    • 18th Mar 18, 7:50 AM
    • #9
    • 18th Mar 18, 7:50 AM
    I have almost finalized the work required to settle the estate just waiting for a reply from the lost accounts advice given in the main help forum on deaths. It`s been about 4 weeks so far, is there a suggested time limit on when to expect a reply? Will they reply if no accounts have been found?

    Thanks in advance
    Last edited by Sirlaughalot; 18-03-2018 at 7:56 AM.
    • Sirlaughalot
    • By Sirlaughalot 18th Mar 18, 7:56 AM
    • 268 Posts
    • 584 Thanks
    Sirlaughalot
    Do recent widows/widowers have any special tax consideration from the HMRC when it comes to income tax allowances or can i assume they are now classed as single people.

    Thanks in advance
    • Linton
    • By Linton 18th Mar 18, 9:38 AM
    • 9,387 Posts
    • 9,519 Thanks
    Linton
    Do recent widows/widowers have any special tax consideration from the HMRC when it comes to income tax allowances or can i assume they are now classed as single people.

    Thanks in advance
    Originally posted by Sirlaughalot
    Recent widows/widowers have no special income tax allowance considerations. But I cant see why that information should be of any relevence to an executor. Why do you need to assume anything?
    • Sirlaughalot
    • By Sirlaughalot 18th Mar 18, 12:36 PM
    • 268 Posts
    • 584 Thanks
    Sirlaughalot
    Recent widows/widowers have no special income tax allowance considerations. But I cant see why that information should be of any relevence to an executor. Why do you need to assume anything?
    Originally posted by Linton
    My Sil has a couple of pensions being left to her by her late husband. She has cashed in the smaller one as she thinks she will need the cash when her daughter finishes her first-degree course at the university in two years time. The second pension together with her NHS nursing salary takes her close to the high tax band of 40% (45001). I was wondering if there may be allowance as she is now a widow but you have answered that now.

    Many thanks and i hope this explains my question as generally a widows pension does involve someone's death and this could be a question associated with the executor of the estate allied to that death
    Last edited by Sirlaughalot; 18-03-2018 at 12:47 PM.
    • Sirlaughalot
    • By Sirlaughalot 18th Mar 18, 12:58 PM
    • 268 Posts
    • 584 Thanks
    Sirlaughalot
    My Sil has also benefitted from the bereavement allowance thanks to the advice given by MSE members. It has been paid in the form of a one-off payment and monthly payments for 18 months if my memory is correct. For tax purposes would this be classed as taxable income?

    I say this because the pension which she cashed in has been classed as income and a P45 document accompanied the payment. Once again i`m worried that these payments may take her income over the high tax threshold and the problems that this may cause

    Thanks in advance
    Last edited by Sirlaughalot; 18-03-2018 at 1:11 PM.
    • Linton
    • By Linton 18th Mar 18, 1:33 PM
    • 9,387 Posts
    • 9,519 Thanks
    Linton
    My Sil has a couple of pensions being left to her by her late husband. She has cashed in the smaller one as she thinks she will need the cash when her daughter finishes her first-degree course at the university in two years time. The second pension together with her NHS nursing salary takes her close to the high tax band of 40% (45001). I was wondering if there may be allowance as she is now a widow but you have answered that now.
    Originally posted by Sirlaughalot
    That is a different question! Nothing to do with tax allowances: An inherited pension pot can be completely tax free. See https://www.gov.uk/tax-on-pension-death-benefits
    • Sirlaughalot
    • By Sirlaughalot 18th Mar 18, 2:36 PM
    • 268 Posts
    • 584 Thanks
    Sirlaughalot
    Trivial commutation i remember reading that in the letter that accompanied the P45/pension payment so i hope the tax has already been paid by the provider so it will not eat into her personal tax allowance. Not a problem for this financial year as she was caring full time (5 months) for her husband up to the point of his death and her income was basic pay only
    Last edited by Sirlaughalot; 18-03-2018 at 2:39 PM.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

161Posts Today

1,753Users online

Martin's Twitter
  • It's the start of mini MSE's half term. In order to be the best daddy possible, Im stopping work and going off line? https://t.co/kwjvtd75YU

  • RT @shellsince1982: @MartinSLewis thanx to your email I have just saved myself £222 by taking a SIM only deal for £7.50 a month and keeping?

  • Today's Friday twitter poll: An important question, building on yesterday's important discussions: Which is the best bit of the pizza...

  • Follow Martin