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Worried about sorting out my parents debt after they have gone

3 replies

namechange58572 · 21/01/2024 19:29

I'm a worrier at the best of times so not sure if I am being OTT. I have siblings who I have tried to discuss the issue with but they don't seem concerned at all.
Our parents who are both elderly and not in great health have a lot of debt. It's highly likely this debt is higher than what their estate is worth. I have tried to have conversations with them to find out exactly how much and who with but they are not forthcoming.
Has anyone been in this position? My main concern is who will foot the funeral/estate agent/solicitors bills in these circumstances. Everywhere I read it states the estate but what happens if the estate is worth nothing?

OP posts:
bobomomo · 21/01/2024 19:34

When people die, the first call on their estate are essential funeral costs - these can be paid from their account (note not wake costs, just the actual funeral).

Second call are debts, if there's not enough money left they due with them.

Watchkeys · 21/01/2024 19:41

The estate pays all it can. The rest of the debt dies with the debtor.

You can easily google how funerals get paid for if the estate cannot afford it.

https://www.simplicity.co.uk/advice/no-money-for-a-funeral

maxelly · 21/01/2024 19:43

You don't need to worry too much - any unsecured debts like credit cards will just disappear if they're more than the total cost of the estate after funeral costs and any secured debt like mortgage is paid. Been there done that unfortunately and the credit card/unsecured loan people were surprisingly unbothered, they didn't pursue us for it or anything, I guess the risk of default due to death is built into the very high interest rates on that sort of credit. my dad was also in debt to the taxman and HMRC were a bit harder to deal with as we got a lot of computer says no and contradictory letters about what his (non existent) estate needed to pay but it all got sorted in the end with noone out of pocket. Unfortunately my dad's 'estate' was so small it didn't even reach to funeral costs which did mean I ended up paying myself for a very basic funeral but so long as your parents have some assets e.g. the house you should be ok. There are government mechanisms to pay basic cremation costs of someone who genuinely has nothing at all but no flowers etc which we wanted so paid out of pocket. Sympathies to you OP for having to deal with this!

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