Debts after death

[TheSnootiestFox]

Hi, just after some help please! Long story short - my mum died recently leaving under £3k in her accounts but a very neglected house worth £145k. She also left debts of around £8k for unpaid credit card bills, care bills, water and telephone etc. Her cremation will be paid for out of the £3k leaving me £1000, and I need to pay the contractors that I instructed before she died and who have completed work on the house as i wasnt expecting her to pass away quite so quickly. There will be about £100 left. I have no intention of selling the house as I rent currently and intend to live there with my children. Credit rating shot due to previous mortgage going into arrears when ex h walked out so I can't remortage. My question is, can I be forced to sell up and pay the debts?

I've been checking things out since mum became ill, believe me I'm on it! And no, no Council Tax relief. I'll pay 200% on mums house throughout I imagine, I did while getting divorced.

As a worst case scenario you could even look at renting the house out to raise the £8k rather than selling it.

Which I agree would be a real shame for the sake of £8k especially as it was your mum's and that you actually need a house

Yes.

Firstly I'm sorry for your loss.
Couldn't you borrow 8k to settle the debt? I think there is such a thing as a money transfer credit card would you be able to get one of those,or a loan secured on the house? It would be a very small percentage of the value of the house. It seems a shame to sell the house for 8k debt if you want to make it your home. And untimely you would be better off if you didn't have to pay rent.
I would get some proper financial advice to fully consider your options.

If she doesn’t have a will, then no one is the executor! You dont need the money for funeral to come into your account, you just get the invoices sent to her account holder and they pay it directly.
Don’t be too surprised if they dont pay the money to you without the sight of a will.

Thanks but they have. The 'account holder' said to me it's either one form for it all to be transferred to me, or a separate form for the funeral and the same form for the balance to be transferred to me. As the lady said, it's daft doing two forms. It did have to be signed and stamped by a solicitor though, and she had no interest in will, funeral invoice or death certificate either.

Once you are in the house would there be space to let a room out? Depending where you live you could potentially charge enough to be able to pay off the debts without a loan?

I'll pay 200% on mums house throughout I imagine, I did while getting divorced.

have you told council tax your mum has died? Possibly through the tell us once scheme?
have you told council tax that there isn’t a will but you’re waiting for administration?

when someone dies with a will and lives in an owned house solo - council tax is zero until the probate is granted. Up to 6 months

but council tax will not know situation, other than your mum has passed unless you tell them, which can sort of get bypassed when you’re grieving and sorting out

i doubt you’d have c/tax to pay whilst admin is being sorted - check it out

Now that is worth knowing, thank you x when I registered the death I was told all council debts would be informed but I will check - I just assumed that as they were quite unsympathetic to me moving out and leaving an abusive marriage, the same would apply!

Banks will release money if there is only a small amount in the accounts (though, in the case of Nationwide, the limit is quite high) without letters of administration / probates. My DMIL passed with not much in her name and no will and we’ve never applied for a letter of administration as it wasn’t needed anywhere.