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How to deal with estranged relatives estate, probably insolvent & intestate

7 replies

nomorespaghetti · 04/02/2021 14:54

An estranged, distant relative has died, and me and my siblings are next of kin. No contact with relative for many years, funeral already taken place without our knowledge. There appears to be no will, he owned a flat (mortgaged), and there are a lot of debt collection letters. It’s almost certain that the debt will eat up all of the money (if there is any) in the property. Records are a huge mess, so we’ve realistically no idea of what was owed and to whom (he was a hoarder but hadn’t kept many useful documents...)

As I understand it, we are under no legal obligation to do anything... is that right?! Can we just hand the flat keys over to the bank and walk away? I am very wary of getting involved due to the high likelihood that the estate will be insolvent. I’m not interested in getting any money if there indeed is any money in the estate.

But if we don’t get involved, how will everything be sorted out? In terms of debts being paid, etc etc? How does this work, as presumably people dying insolvent and intestate is not an uncommon scenario? Thank you.

OP posts:
crabbyoldbat · 04/02/2021 18:55

Only the estate has to pay outstanding bills, not relatives. What happens is whoever administers the estate (executor, who can be next of kin or not) gathers in any money, including from selling property, belongings etc. , finds out whats owing, and either pays it, or tells whoever's owed that there isn't any money to pay it. There's an official priority order if there's some money, but not enough for everyone. If, after all that, there's anything left, it gets distributed as per intestacy rules.

I'm not sure who would take control if you walk away, but the bank isn't going to do anything other than the flat, I'd have thought - maybe the local council step in and/or appoint a lawyer to deal with it.

Whitney168 · 04/02/2021 18:57

If you weren't good enough to tell about the funeral, I certainly wouldn't be taking on the admin of executing the will! (Am currently doing this for my Mum's estate, it's enough faff without the debt collector element.)

Aquamarine1029 · 04/02/2021 19:00

You have no obligation whatsoever to deal with this mess, and I certainly wouldn't, I can assure you of that.

crabbyoldbat · 04/02/2021 19:07

Might also be useful to take a look here: www.mumsnet.com/Talk/legal_matters/4155786-Dealing-with-an-Insolvent-Estate

Who sorted out the funeral (just out of nosiness)?

nomorespaghetti · 04/02/2021 22:00

Thank you very much all, that’s really helpful. crabby his church sorted out the funeral

OP posts:
Hoppinggreen · 05/02/2021 14:52

I don’t think you are under any obligation to do anything

Toorapid · 05/02/2021 15:02

You aren't obliged to do anything and the debts certainly aren't your issue, but it's unlikely there's a mortgage on the place without life insurance to cover it, so there probably is value there.

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