Having to Pay the Debt of a Deceased Parent?

[absolutelyclueless]

Hello All,

I hope you can give me some advice for a good friend, whose father sadly died in August. The debt is for an adjustable bed that her Dad took credit out for back in 2013. My friend thinks the debt is about £6,000; she knows he was paying £103 a month and had 36 months to go when he became very ill and was moved into a hospice.

The deceased didn't own his own property, and money from his bank account was split between my friend and her 2 siblings (there was not enough in the account to to cover this debt, incidently).

My question is, is my friend liable for this debt? Her father was under the impression it would effectively die with him, but she has today received a letter saying she will hear from the company's solicitor within 10 days regarding the outstanding amount.

Any advice gratefully received; obviously this is adding to the upset of a recently bereaved family.

To close bank accounts you only need a death certificate. If they only hold small sums banks hand it over. Probate is only needed if property or trusts are involved and the estate is large. Does not sound like it was needed in this case. However, the bed company is entitled to the sum of money that was divvied up my your friend, to go towards the debt, as sounds like they will try to recover it. The balance, they will have to write off. Not sure about the bed though, as ownership was still with them. It was odd for your friend to give away an item that she knew was being purchased on hp.

To close bank accounts you only need a death certificate. I think you have to be the executor or appointed administrator? Surely you can't just rock up with a death certificate and close an account and receive the funds? ANYBODY could do that

could that affect your credit rating though, not paying it?

I'd be tempted to just ignore it if it doesn't affect your credit rating?

And how could it really.

We closed mum's accounts earlier in the year. She had two at different banks. Each bank had different levels at which they required probate - one limit was £30k and the other £50k if I remember right. We closed one of them without probate but had to take a copy of the will which named me and dsis as executors, plus ID, as well as the death certificate.

If the company told her to do what she liked with the bed, they cannot change their minds down the line, once the OP has already disposed of it.

We had similar and sought the advice of a solicitor.

They told us we were not executors unless there was a will and probate was obtained. Not administrators either without probate. As the estate was tiny (no property, small amount in bank) probate was not needed and if any creditors made contact we were simply being helpful...and had no need to be, could have just left the estate alone and walked away.

However, your friend has got involved in the estate (we did too, closing accounts etc thinking it was the right thing to do). We were told to keep aside any money and, if creditors contacted us, inform them that the estate was insolvent and ask if they would consider writing off the debt. If they wouldn't then they would only get a share of the money once all creditors had been contacted. Do you know if he owed anything else?

There's a template letter here bereavementadvice.org/topics/probate-and-legal/dealing-with-insolvent-estates

Though your friend will need to change the first line. She should call herself next of kin, DON'T use the phrase "personal representative" as that means an executor/administrator who has legal responsibility to administer the estate.

Unfortunately, if they decide not to write off the debt she will need to pay them. Not the full amount, just what was in the bank account (unless there's other creditors, then she'd need to share it between them).

When my mil died (also owing lots of money) I was advised by more knowledgeable posters on MN to not pay any bills from mils account or take any responsibility for anything because once you start paying bills etc you can make yourself legally responsible, as you have tampered. There is a very specific order in which creditors have to be paid. If there is more money owing than there is in the estate, you, as nok have nothing to gain by tidying up the affairs of the deceased and I was advised to just walk away.
In mils case we were lucky that there was sufficient money in her bank acc to pay for the funeral. We did clear out her flat because it was council and had to be handed back. I also contacted all her creditors that I knew of to inform them she had died, just to be polite really but I refused to sign bank paperwork ehich they tried to sneak on us making dh legally responsible if creditors tried to claim from the bank. Watch the bank - they will be sneaky. I also refused to pay any bills or handle anything else.
This won't help you OP but might be useful info to anyone else dealing with an insolvent estate.
It was awful. A good year after she passed, I had credit card companies ringing my house chasing money, despite bring told that there was no money and they wouldn't be paid.
As an aside, what sort of company thinks it is a cracking idea to give large credit to an elderly woman with health issues and no guarranteed income?

TBH I can't understand why your friend thought it was ok to take the money form the estate when there were debts owing.

Aderyn2016 that's only partly true. If you are the executor of the will then you are responsible for all the things you have mentioned not to do.

Sorry, I meant if you are just nok and there is no will/executor

Your friend is definitely at fault as executor. It's not like a magic fairy comes along and pays the bed company. They have bills to pay too. She's going to have to contact the other beneficiaries and see if they'll help out. I feel for her as it was obviously an accident.

Thank you everyone for the additional responses. My friend has now paid the debt and is relieved it's all over.

Glad it's over with

Good to hear that she sorted it out with the company, thanks for the update.

My friend has now paid the debt and is relieved it's all over. Why? Why has she paid the debt when the debt was considerably more than the money which was originally in the bank