Debt in Death query?

[HazeyJaneII]

If someone dies with a debt (under £3000), and has a very small estate (also under £3000 - no savings, property etc) - which just about covered the cost of funeral, death cert, bills and cost of emptying rental property....would the executors of the will (us) then be liable to pay the debt?

No. As long as you've administered the estate properly.

No, the debt dies with the debtor. Most companies have a bereavement dept to talk to.

No. The estate is used to pay off debt. If the estate is less than the debt, then it would be written off, afaik.

Thankyou
Ok. We spoke to the company shortly after the death, and they said that it would almost certainly be written off, so we gave our contact details.

So I was surprised to receive a letter from someone acting on their behalf, sent to the rental address, saying they had been trying to contact us and the balance now needed to be paid.
Would there be a priority in what the estate pays for? Ie - if the funeral/immediate bills owing, has been paid for using all the money, would we the credit agency still be able to ask for the money from the estate?

There is a priority order of debts. The technical term is 'insolvent estate'

www.co-oplegalservices.co.uk/media-centre/articles-may-aug-2017/what-is-an-insolvent-estate/

Hope you can sort it out OP, sorry for your loss.

There is a priority if there is no insurance.

Mortgage secured loan
Tax and Council tax
Utilities and credit cards last.
You would need to consider selling any car and antiques etc.
You should maintain records.
Unless you notified the creditors there is no estate they won't know the situation.

This is all helpful, Thankyou.

We informed the creditors that there was no money (at the time, we weren't even sure there was any money at all). There is no mortgage, car, antiques or anything of value. The money in her account just about covered the funeral and the bills on her flat.

It was fucking horrendous when it all happened, and trying to sort everything out, I thought I'd turned the page, so it's knocked me back a bit to be honest.

As others have said, if the estate is insufficient to cover the unsecured debts the debt should be extinguished.

I’m sorry for what you’ve been through. Don’t let them harass you.

But sounds like you have settled some bills in full? I think possibly this was incorrect as all unsecured creditors including utility companies should have been considered equally for distributing what assets there were.

We had to pay the gas and water bills before handing in the keys on her rental property, which we had to do 2 weeks after she died. We called the credit company and explained the situation, giving them our details so the could contact us. I expected this to be sooner than 4 months after her death.

My understanding is you should have told the gas and water companies there weren’t funds to pay them. You should have collected information regarding all the debts and then for those of equal standing negotiated with all the creditors to partially settle the debts as far as the value of the estate allowed. You do take personal liability when you administer an estate, even a small one so although debts can’t be passed on you could have to correct any misadministration.

I’m so sorry for your loss and I know from experience that administering an insolvent estate is incredibly distressing at what’s already an awful time. It might be worth reposting this on the legal board as I’m just speaking from my experience of a slightly similar situation.

Thanks mystery.
I don't really understand why none of this was mentioned by anyone I spoke to when my mum died. Also why the credit company said it would be written off
Anyway it is what it is. I think we'll end up just paying it off, if we can. I am pretty broken by the last few months, and don't have any sort of fight in me.

sorry for your loss

the cynic in me thinks that the credit card company is now trying it on and seeing whether a grieving person will pay up - not realising that they are not liable for someone else debts (you've already explained there is not money in the estate, they will have made notes on their system too they know this)

Yes, absolutely don’t mean you should pay it off. They might have been entitled to a tiny share of the funds after the funeral expenses and at most this is what you might be liable for. Please don’t pay it off.

You're not liable for anything unless you had joint finances and accounts. In fact, you are now owed money from the estate because you paid those bills.

Anybody who pesters you, tell them they need to wait whilst you get the estate in order.

No. Debt dies with the person unless it’s in joint names.

They will try and get money out of you though. It took forever for us to get FILs credit card company to leave us alone. He didn’t have enough to cover his funeral let alone anything else.

www.moneyadviceservice.org.uk/en/articles/dealing-with-the-debts-of-someone-who-has-died#what-happens-to-debts-when-you-die

You really don't have to pay this debt and the credit card company are praying on your good will to do so.

I suspect it’s an admin error and automated systems not talking to each other. Call them again - I’m sure it will get sorted out.

I’m sorry for your loss.

Any one owed anything will need evidence of no funds.
You need to keep a break down of costs and receipts regardless.
I would send them a copy of this.

Sorry for your loss,

I lost my mum in April and have absolutely appalled by the way some companies deal with this situation, they all want to squeeze every last £1 out of it. If there is no money in the estate then you are not liable, they will be pushing it in the hope it gets paid off.