What happens to debts when you die?

[BrilloPad]

If you die with debts in your name, can your spouse be chased for those debts?

Mother-out-law died suddenly on Tuesday. Caused a lot of suffering - my wife is distraught. Has not eaten or slept since. I came up to Wales to look after the child and provide what support I can. I have to go back to London tomorrow to take the twins up to Wales for half term.

Earlier he husband got a call from a catalog company. She had run up a £1000 debt in her name. He checks paperwork - another catalog company £2000. 3 further credit cards - £4500, £7500 and an unknown! So she owes £15,000 minimum.

Apparently she has spent all his enormous life savings! He was unaware of the debts - all in her name. He was aware of credit cards but thought they were nil balances.

He gets £8000 per year pension. A funeral bond of £5000. No savings or investments. He has a car worth about £3000. They owned a flat together which will now pass to him - worth about £250,000.

Is there any way that he can be chased for her debts?

He is 85 - and very distressed. I am advising him to refuse to accept further phone calls and to refer all letters to her daughters. Anything else practical that can be done?

BP

[SarahL2012]

Try citizens advice - they should be able to tell him (or you if he isn't up to it) what the legal position is. I think they will also speak to the creditors.

[Magpie252]

Sorry to hear your bad news

Unfortunately it's the responsibility of the Executor of the will to settle outstanding debts before the remainder of the estate can be distributed

I assume/hope she had will and appointed an executor, the executor should write to all of the creditors explaining the situation & requesting that all future correspondence is directed to them

Then take proper advice, CAB would be a good start

[eek]

The only debts he can be directly chased for are those in joint names anything in her name needs to be paid from her estate which by the sounds of it is nothing.

Debt after bereavement and death | Advice from StepChange (CCCS) Has some immediate advice but beyond the immediate bit of identifying the companies and notifying them in writing there is little you need to do immediately.

Try and get to speak to the citizens advice or age uk. They will point you in the right direction.

[BrilloPad]

Many thanks for the replies. We are going to contact CAB - age UK is a good one - cheers!

The flat was owned as joint tenants so I believe will pass to her husband automatically? Neither of them had any other assets.

[eek]

Many thanks for the replies. We are going to contact CAB - age UK is a good one - cheers!

The flat was owned as joint tenants so I believe will pass to her husband automatically? Neither of them had any other assets.

Yep see Jointly owned property and Inheritance Tax // Probate Forms . It would seem that there are no assets from which to pay the debts so it's probably a matter of writing to the companies and saying sorry there is no estate to pay the debt from.

Check what cab or age uk say but tell them it looks like there is nothing to worry about. Oh and have a safe journey tomorrow.

[Syntyrion]

No, she does have one very significant asset - her half share of the £250k flat. So her executor will have to pay her creditors out of the proceeds of that. Speak to CAB and if the come after him, get a solicitor (Legal Aid may also be an option).

[eek]

No, she does have one very significant asset - her half share of the £250k flat. So her executor will have to pay her creditors out of the proceeds of that. Speak to CAB and if the come after him, get a solicitor (Legal Aid may also be an option).

You may went to investigate that a bit further with some online references before talking about things you don't understand. How the house is owned is very important in these cases

[centurian]

A simple Land Registry search will give the answer. Can be done in minutes online by paying a small fee.

What you are looking for is Joint Tenants, where the property automatically transfers to the other parties. This makes is harder for creditors to get their claws into her half of the property - although they can still do it if they are sufficiently motivated. But it puts you in a better bargaining position to negotiate a much lower settlement figure for each creditor.

If the land registry comes back as Tenants in Common, then things may be a bit tougher - as the half ownership only transfers once the estate is settled. This gives creditors the upper hand.

Of course, both options may involve paying the creditors something - and it sounds like there is little cash to go around to buy them off, even at 20% etc. The creditors with smaller amounts may not bother, especially if Joint Tenants. It's the larger ones that need more attention.

Age of the surviving spouse will be a factor - creditors and courts will not want to turf a person in their 80s out of their house for unknowingly debts run up by their spouse - feel free to play on that point.

[d000hg]

As well as CAB there are excellent debt-advice charities such as CAP (www.capuk.org) - they're a Christian charity which is why I know of them but they're very good. Could be worth a quick call to ask if they deal with such situations.

Amused by the google suggestions when you type "christians against"... poverty is nowhere near the top of the list.