Debt After Death

Author: Josh Hall

The level of consumer debt in Britain has exceeded £1 trillion. This is formed in large part, of increasingly large mortgages, precipitated both by increased house prices and relatively low interest rates. In this climate in which borrowing is de rigueur, it is all too common for people to accumulate debt with little or no thought for the future. Indeed, a startlingly large proportion of people assume that, when you die, your debts will be written off. This is, of course, not the case. In fact, the death of the debtor has little effect on the debt itself – it must still be paid back by one means or another.

The Estate

When an individual dies, all of their assets (including money, property, shares and insurance payouts) are bundled together and valued as one. This collection is known as the person’s estate. When an individual makes a will, they will name someone to take charge of their affairs after their death. This person is called an ‘executor’. If, on the other hand, they have Died Intestate (that is, without a will), then an ‘administrator’ is appointed to carry out the same duties. The first task facing this individual, after having valued the estate, is to begin to pay off any outstanding debts from the estate.

In paying off these outstanding debts, the executor or administrator must ensure that they repay the deceased individual’s creditors in a certain order: Mortgages and secured personal loans; funeral and admin costs; inheritance tax then utility bills, credit cards and other taxes.

It is often thought that a surviving spouse or civil partner will automatically ‘inherit’ the deceased individual’s debts, but this is not necessarily the case. Nothing will be paid to the beneficiaries of the will until all of the debts have been cleared, but there are only certain circumstances in which a partner would be liable for these debts. The most common of these is if you were to have a loan in a joint name (that is, your partner’s and your own), or if you acted as a guarantor against a loan taken out in the deceased person’s name. In these circumstances, the responsibility for paying back the money is passed to you.

Will Terminology Explainer

Understand will and probate terminology in plain English.

Try our Will Terminology Explainer free, here on this site →

Your situation may be slightly different. ask a question below ↓ and our editorial team will reply with our advice.

Housing

If there is not enough money in the estate to pay off the outstanding debts, and you jointly owned a house with the deceased individual, there is a chance that you may be forced into selling the property in order to satisfy the creditors. Your course of action in these circumstances depends on the legal position of your tenancy; if you were tenants in common (that is, each of you owned a specific share in the property) then debts will first be paid from the deceased person’s portion of the house.

However, you are likely to have to negotiate with the creditors in order to avoid the forced sale of your portion. If, on the other hand, you were joint tenants (that is, you owned the entire property together), the deceased person’s portion will pass directly to you. However, creditors can still attempt to force the sale of the property through an Insolvency Administration Order, and so you would almost certainly be best off trying to negotiate a payment plan with those who are owed money.

The Next Step

Now that you have read through the advice above, you might want to put it into practice. Our Will Terminology Explainer lets you understand will and probate terminology in plain English. Try it now →

129 questions

Ask The Will Expert a Question

Ray Delta 07/07/2019 at 2:49 pm

My partner passed away in February 2019 leaving no estate assets or monies, she had a vehicle on a lease hire agreement with an £8,800. now owing. The leasing company have offered the options that this sum should be paid, sell the vehicle for the best valuation acceptable to them or they will recover the vehicle. I have sent them valuations which they have declined. Can the vehicle be recovered without a county court order and can an order be contested by my partner's estate.

Scarramouche 15/07/2018 at 9:39 pm

My mother died 2 years ago intestate. and a solicitor was used to deal with the estate thereafter. This was completed about a year ago after her old flat was sold. They issued a completion of estate distributed between her 4 sons.
Last week the employed solicitor wrote to me saying they have now received a further invoice from HMRC for rental income during her lifetime and ai do not know what this is. I have called them twice to be told that the relevant team will call me back.

My mother suffered from Alzheimer's in her latter years and spend a number of years in care homes.
I was not privvy to her financial affairs as 2 of my brothers decided to take care of all that.
I thought the flat had been sold to pay for her care but apparently not and unknown to myself the flat had been rented out to pay towards some of the care costs. I was unaware of this until the solicitor told me the flat could not be sold until the tennant is removed.
Am I liable to a portion of this money (almost "£1200) that HMRC are now demanding which the Solicitor did not take into account whilst sorting the estate.
I do ot have this sort of spare cash as the money from my inheritance went towards paying off some of my own debts

Bear 19/06/2018 at 3:25 pm

Can you please help.
Basically I had been with my partner for about 6 months. We were engaged,and he moved into my house.
Things didn't work out so we parted and he moved into a rented room.Soon afterwards i was notified that the bailiffs were coming to my house because he owed £7333.l knew that he owed it, but he told me that he had recently arranged it to be taken out of his weekly wage (but obviously he hadn't).I was horrified at the thought of bailiffs coming to my house, so my brother reluctently lent him the £7333 on the understanding that my ex paid him £500 per month untill it was paid. My ex wrote out an agreement and signed it. I signed to say i had witnessed it. Unfortunately my ex died (he took his own life),after only making one payment. My brother now says that i will have to pay him back. Will I?

Chappers 23/02/2018 at 7:00 pm

Sisters died suddenly no will 44yrs old. Our mother had supported sister and her husband by loaning £1200 a month for18 months for mortgage, expecting to be repaid. No life insurance. Husband fobbing off repaying as loaned wife and she spent it on mortgage not his debt. I've suggested lodge debt against property. Mum needs money back. Joint Tenants

TheWillExpert Editor 16/02/2018 at 3:32 pm

We don't know...you'd need to seek professional help from someone who has all the details. How can there be an executor if there is no Will?

Mojo 14/02/2018 at 11:13 pm

My Dad died 2 years ago intestate. He left a mortgage and an endowment policy made to the Executor, who is my sister. It has been agreed that his partner who still lives in the house, shall get the profit from the house sale, once the mortgage is paid. The endowment policy is to be shared between his children. If she refuses to move out to allow a sale to proceed, can the bank force the endowment policy to be used as part payment and then the Executor say the rest?

Donnametty 11/02/2018 at 11:23 am

My uncle died about a year ago and I was executor of his will I distributed the estate equally with my brothers and now the Council are saying that back in 2014 they paid a care home 7500 bill and they have sent a letter stating that back in 21014 it came to light he had sufficient funds in his accounts. Are we liable to pay this bill.

TheWillExpert Editor 23/01/2018 at 2:16 pm

Since you have an agreement in writing, simply send a copy of the agreement to the invoicer saying you are not liable for payment of this debt and that the new owner had agreed to pay this. The company should simply re-invoice the new owner. Consult CAB or go back to your solicitor if they refuse.

Sj 21/01/2018 at 9:58 pm

My father in law passed away last year. We now have a bill from HMRC for income taxes he owes for the last financial year. Is his wife liable for this? Will she be forced to pay it?
Many thanks

Mr Sponge 20/01/2018 at 12:22 pm

Hello

My father passed away 18 months ago, as executor I dealt his estate, all known debts were paid and his house was sold.

His house was a park home on a rented the pitch space. Both the house and pitch space were sold to a new owner. Part of the sale agreement included the buyer paying any outstanding pitch fees. We have this agreement in writing.

Today my solicitor emailed me to say she has received an invoice from the company that previosuly owned the pitch space, the invoice is requesting my father's estate pay £1500 in unpaid pitch fees.

I do not think I should have to pay this, but I'm not sure how best to take this forward, the invoicer has threatend to take me to court if I don't pay it.

Can anyone advise me?

Jo 11/01/2018 at 12:01 pm

My mother passed away 10 months ago. After settling her debts, the balance of her assets amounting to approximately £7000 (including a refund from HMRC) was shared between her grandchildren. HMRC are now demanding £605 tax from her estate. Do I have to pay this? I am a pensioner and cannot afford it.

TheWillExpert Editor 08/01/2018 at 11:42 am

Ask for full details of how the costs arose, what they were for, when they mistake was uncovered, why it wasn't addressed until after your mother had died. Were the fees paid from a pension? Was she due the balance of that payment from the council itself? There's not really much information here so we can't really advise. If the debt is genuine, the money may have to be paid from her estate after all other expenses have been paid etc.

Cymro 05/01/2018 at 11:13 am

My mother died in June 2017, in a housing association sheltered complex.
She had Council help with care fees, but the local authority made a mistake in calculating the care costs and are asking me, the son, to pay £950 of the arrears.
Do I have to pay as it was the Councils fault in their assessment of the care costs. My mother left £1000 after all funeral costs etc were paid.
Thank you
Colin

TheWillExpert Editor 02/01/2018 at 2:47 pm

The debt should come out of her estate. If there are insufficient funds in the estate to pay the debt it's likely it will be written off.

wales1982 25/12/2017 at 3:17 pm

My nan has a £1,000 debt with a catalgue but shes adamant the debt dies with her. She rents her house and has no assets so does the debt die with her?

Thanks

TheWillExpert Editor 08/12/2017 at 11:45 am

Usually if a life insurance policy has a designated beneficiary the estate goes directly to them. However as the insurance plan was cashed in early it's likely it will form part of the estate.

Rar 08/12/2017 at 9:58 am

My friend died without leaving a will. He has property which will cover his debts I think.
He had life insurange which was paid out while he was alive due to terminal illness,he wanted to divide it between 3 people myself his sister and another friend but didn't as he died before he could do that.The money was paid into his account and as far as I know still there.
His sister doesn't want to deal with his estate so someone else maybe a creditor will have to be appointed.
My question is, as she would have been the beneficiarie of his life insurance had it not already been paid to him does she have a claim to that money or will the administrator use it to pay his debts.

TheWillExpert Editor 09/10/2017 at 3:09 pm

How had the fees built up to that extent? Had your wife not arranged payment (on the basis that she had power of attorney over their affairs). Usually if someone passes away any debts are cleared from whatever is left in the estate. If your wife was responsible for paying the carehome fees as she had POA, then she may be responsible for paying the debt. You should really seek professional advice, with details of when the debts accrued, when POA was obtained etc.

Toby 08/10/2017 at 9:25 pm

My wife was power of attorney for their bank over her nan & grandad who has passed away recently. They lived in a carehome & fees over a year built up to owing £10,000! No money left in estate & money which was there covered their funerals so is my wife liable to pay this?

TheWillExpert Editor 03/10/2017 at 3:42 pm

No, any fees should come from her "estate". If there are insufficient funds, you as relatives cannot be held liable for these debts.

jane 02/10/2017 at 1:28 pm

My mother in law has passed away and i have been sent a bill for money owed fpr her nursing care fees. She has no money the only policy due will pay for her funeral and we will still owe on that. Are we laible to pay the fees as im on a small income. Any advice would be greatful
thanks

TheWillExpert Editor 25/09/2017 at 3:02 pm

No. Any debts should be paid out of your father's estate. If there's not enough money you as his child cannot be held responsible for any debts (unless they are joint debts such as jointly owned property or loan that you guaranteed etc). A financial or debt advisor or solicitor will be able to help you with this.

Kel 23/09/2017 at 9:50 am

My father passed away April this year. I've now found he owes a lot of money to different people. Notts county council for the care he received in his last months also hmrc for tax and late fines. I've spoken to ncc. But hmrc are saying I could be liable for this bill. They say it could be passed to me as I'm next of kin. My father left nothing no money no estate no will. Is this true could I end up paying them this outstanding bill it's in the thousands so I'm starting to panic.

TheWillExpert Editor 27/07/2017 at 2:09 pm

If your sister's name is not on the title deeds then she may be forced to sell the property to clear the outstanding debts. The normal course of events is that when someone dies, any debts are paid from money and property left by the deceased.

LKC 24/07/2017 at 5:27 pm

My father has recently passed and we believe he has debts of approximately £10k. He has a property which is owned outright and a tiny life insurance policy which will play out approx £3K. Will my sister (who lived with him) be made to sell the house to pay the debt? Thanks.

TheWillExpert Editor 20/06/2017 at 2:00 pm

What is the tax refund for?

Apple 18/06/2017 at 7:53 pm

Hie guys am new on here need some help please. My mom passed away in 2011 and I'm administrator of her estate I've received a tax refund cheque how do I go about this as I'm clue less

Booboo 10/05/2017 at 7:05 pm

Am I liable for my dead husbands tax bill

Booboo 10/05/2017 at 7:04 pm

My husband died suddenly in April 2015 leaving an outstanding tax and vat bill amounting to 23,000 he had a sole traders business which has now been taken over by my stepson without my permission am I liable for paying the debt as hmrc are telling me I will be looking at s custodial sentence

Sal 29/04/2017 at 5:39 am

I have just found out that my mums funeral bill was never paid off fully in 2007 there is an outstanding balance of £1,350 we have had no correspondence from the funeral directors at all , are we still liable for this after nearly 10 years ? Could we pay it off in instalments if we are as I have no savings I'm on long term sick thanks any advice appreciated

chris 22/04/2017 at 3:15 pm

My sister died leaving masses of debt, she was also a hoarder so on entering her property it
was a massive
job to find any paperwork in the first place and then contact her many creditors which i did my best to do. Debts included many that
were old and some seemed to have been sold on which made the process even harder, i did what i could and didnt hear anything else in the 9 months it took to sell the property. We cleaned and made the property saleable and the property has now been sold and it seems that only now we are being contacted by these creditors some that we are aware of some that we aren't. We didn't place a newspaper advert in the gazzet mostly down the many financial costs we were already incurring. We are now in a process of
settling some of the debt and are aware of who gets priority but my question is how much time do we give before we can start to distribute the estate if there is anything left, i have been told that any debts that are older than 6 years cannot be claimed for and that any company that writes to me need to give me full details of the debt but im not sure who true this is im also unsure of how long i need to wait for these companies to contact me? any information and advice would be much appreciated.

cool 19/04/2017 at 8:54 am

late brother left credit card debts - no will, no estate, I informed credit card companies and was informed accounts closed. compensation money from a mis-sold investment has come in 18 months after his death - do I have to inform these credit card companies now?

TheWillExpert Editor 18/04/2017 at 11:32 am

When someone dies, their debts should be paid from their estate. Your father will need to check what type of "ownership" the property is registered as having (with the Land Registry). If it was registered with your mother and father as "joint tenants" they both owned the whole home, so the surviving party (your father) automatically becomes sole owner. If the property was registed as "tenants in common" your mother's share of the property may form part of her estate. If the latter is the case, the HMRC debts might be payable from this part of her esate. In general if there is nothing in the deceased's estate to pay the debts, they will be written off. Your father can't be held personally liable for them. A solicitor will be able to advise on this.

Hen270466 15/04/2017 at 4:24 pm

Hi
My mother died suddenly. No will, no money and now being chased by HRMC for a debt of 28 k over underpayment of taxes from 2012 to 2015.
My dad is an OAP and living in the same house which is mortgage free. He has no funds to pay this unless he sells the house and they have separate bank accounts.
Is he liable for this taxes if so how can this be remedied without him paying. Please note that mom ignored the her tax liabilities all there years as we have only found out.
Any advise will be truly appreciated .

TheWillExpert Editor 10/04/2017 at 2:05 pm

We assume the executors were sufficiently thorough in their investigations of any outstanding debt, including checking your mother in law's paperwork, asking her friends and other family member (plus possibly advertising for creditors to come forward via an annoucement of the death in local papers and the London Gazette). If so and no other creditors came forward, you should be protected against any claims and can just tell them that the estate has been settled and there are no funds available to pay.

Kates 09/04/2017 at 8:47 am

Is it better to secure a loan against business assests or my home for inheritance tax purposes

Kate 07/04/2017 at 4:46 pm

My mother in law passed away 16 months ago. We have settled her estate and distributed the proceeds among the family.
We have just recieved a letter from a care company for an outstanding bill. We did let them know she'd died at the time. But they have never sent an invoice. Until now.
Do they have a legal claim to make us repay the debt?

TheWillExpert Editor 06/04/2017 at 1:59 pm

Unless this was documented it's unlikely you can be forced to pay it back. Can you come to some agreement with your sister over this.

Del10 05/04/2017 at 6:09 pm

My parents both died 3 months apart from each other last year ..I have a sister and over the years my parents have loaned me £27,000 .just sold my parents house ( no mortgage) do I have to pay my sister any money , ?

TheWillExpert Editor 22/03/2017 at 10:35 am

You are not responsible for this debt. Just tell the Council that your father has died and did not leave sufficient assets to pay the rent arrears. If you have any paper work or evidence, send that too. They can't take you to court unless they can prove that there were assets in the "estate" to pay for the outstanding rent.

Di 19/03/2017 at 9:08 am

My daughter in law's father died over 2 1/2 years ago. He did not leave a will and had nothing of value.She did not benefit or expect anything when he died. He lived in a council flat and received housing benefit. His furniture was all very old and was taken to the tip except for an ancent tv that was given to his brother.
The local council has now sent her a letter saying that he owed council tax and if she doesn't pay it within a week she will be taken to court and incur further costs. This has come out of the blue. Surely she can't be expected to pay this.

kerry 12/03/2017 at 11:01 pm

my grandparents are leaving a house which is a business upstairs (renting rooms to tenants x5) and downstairs is a separate flat in which they live to myself and my sister my sisters name has just been out onto the papers to say that she is part home owner and I will be added at a later date.....will we still have to pay any inheritance tax on the house even if my sister is already part of the home owner, thank you in advance for your help we are so confused about the best thing to do but no amount of solicitors or accountants can give good solid advice!!!

WW 24/01/2017 at 5:11 am

My Mum recently passed away with a huge amount of debt on credit cards, store cards and an overdraft
Funeral costs have been paid using an over 50's insurance plan she had taken out.
We are due 2 payments (hopefully) from her pensions. There is no other estate than that.
My Mum had a will and I am the executor.
The question I have is when I informed her bank of her death they said that she had insurance on the credit card but the overdraft would need to be paid. A friend asked a friend who works for said bank and she said that we could refuse to pay the overdraft as it is below the amount they can wipe without question but will obviously try to get us to pay it and I wondered if this was correct? I had also informed one of her other credit cards and they said the debt was wiped but that the company would still try and get me to pay the debt but I was to refuse and there would be nothing they could do about it which is why I'm wondering about the overdraft.

Haslemere 11/01/2017 at 9:04 pm

My partners father died recently. He had a Spanish property which was mortgaged by a UK lender. The property is in negative equity and have said they will claim against the remainder of the UK estate, effectively clearing all his savings, pensions etc. We would accept them repossessing the property but the solicitor thinks they have a right to the rest of the estate and is advising to hand over the whole of the UK estate in settlement. Does this sound right?

Nickj 11/01/2017 at 8:00 pm

My mother recently passed away leaving my Stepfather, my sister and I equal shares in her half of a Spanish property. Unfortunately there remains a 50k mortgage on the property in Spain. Her assets in England (cash) are more than enough to cover the Spanish mortgage, however my Step father insists that all 3 of us are responsible for the remaining mortgage. Is this true or should my mothers English assets (cash) cover her half of the mortgage?

TheWillExpert Editor 11/01/2017 at 12:31 pm

Tax debts are paid out of the deceased's estate. Your personal savings account would not form part of this estate.

Amanda 10/01/2017 at 5:40 pm

Hi
My husband had unpaid Tax debt to HRMC Because he has no money to pay it , my question is if he dies and there is no money, investment, shares, in his estate to pay this debt ,would they claim the debt from my personal saving bank account ,which is not joint??"
we dont have any joint account , or joint property

TheWillExpert Editor 13/12/2016 at 11:59 am

Funds for the mortgage will have to be found from the value of the estate (the house may need to be sold). Do check with your mortgage company to see if there was any life insurance included in which case it will be paid off automatically. Also check your parents paperwork/pensions records etc to see if any other life insurance policies were held.

Aunti 11/12/2016 at 10:10 pm

My parents died with in a short time of each without leaving a will and owing £70.000 on the mortgage.i am an only child and a student have I to pay this.

TheWillExpert Editor 15/09/2016 at 2:08 pm

We cannot say how willing the creditors would be to write off the debt. If there is a property available, the creditors may be less willing to come to some arrangement unless the property can be used to secure a repayment agreement etc. You should seek advice from a legal/financial professional who can review the entire situation. Citizens' Advice however, might be a good place to start.

Nick 14/09/2016 at 3:53 pm

Hi, I am dealing with my father's estate. His estate has two unsecured debts (about £11k in total - bank loan and credit card) and a half share in a property (tenants in common). There is also about £4k in cash to distribute to the creditors. Funeral costs etc have been taken care of.

This leaves about £7k of debt which should theoretically be met by selling the property.

Given that it is half owned by somebody else, we are reluctant to sell it, and would like to negotiate with the creditors.

I am happy to negotiate but I am clueless as to how strong or weak our position is, and how aggressively the banks would poursue the debt.

From your experience, what sort of level of settlement would the banks accept, and how likely is it that they would write off the remainder of the debt given that the cash in the estate will cover around 35% of it?

TheWillExpert Editor 23/08/2016 at 9:56 am

It does seem very strange that someone would be collecting a debt from a period that ended 4 years ago without have made any prior contact in the interim. The easiest thing to do would be to ask your mother's bank for statement of the direct debits made during the period of her residency - send a copy to the nursing home and say nothing is owed. Did you put a notice in the Gazette inviting credritors to come forward at the time of the death? This means that the personal representative of the estate will not have any liability for the debt (however sometimes residuary beneficiaries can do). We suggest you take this to a solicitor or the Citizens' Advice Bureau to take a look at further.

Kate 20/08/2016 at 3:47 am

I was Lasting Power of Attorney for my mother. Although never officially registered with the Courts, the form was registered with her bank and other financial institutions which gave me control of her financial affairs during the time she was living in a nursing home. I was also dual signatory on her cheques. I was sent a copy of all invoices via email each month, but the fees for her residency at the nursing home where paid for by direct debit out of her bank account.

During September 2013, I moved my mother out of the nursing home in question and any outstanding invoices were settled before the end of 2013, after which I had no further contact with the nursing home. My mother actually passed away in July 2014 and the remainder of her estate was divided up between me and my relatives as detailed in her Will. There were no outstanding debts on her behalf to settle at the time other than her funeral expenses which were paid. Her property had previously been sold prior to her death and the proceeds of the sale were used to fund the nursing home fees. Any investments she had were liquidated for the same purpose. Other than some china and a few items of furniture absolutely nothing remains of her estate.

Since April 2016 I have received email correspondence from a debt collection agency employed by the above mentioned nursing home. The nursing home claim that my mother, 3 years after she moved out and 2 years after she died, has an outstanding debt to them amounting to approximately £11,000. I was also forwarded by the debt collection agency a few days ago, a formal Statement of Account dated from 2009 – 2012 on the nursing home letterhead. I have briefly reviewed this but it is unclear to me how this debt arose. My question is, can I be held personally responsible for payment of this so called debt?

TheWillExpert Editor 14/07/2016 at 10:58 am

Is there any detail of the loan written down anywhere? If so, it will be part of the debts to be recovered etc. The note will probably not have any legality if it was not appended to the Will itself, but a solicitor would be able to advise you further on that.

JDB 11/07/2016 at 12:52 pm

My brother borrowed money from our mother and she wrote a note saying that it should comm off the will. Now she has died he is refusing to accept that he should pay it back as the will does not mention it. It is unclear when the note was written but may have been written after the will.

Gilly 27/06/2016 at 6:20 pm

My brother died intestate and with significant debts. Can his creditors make a claim on his pension or is that protected as mow belonging to his children?

Chris 23/06/2016 at 8:17 pm

My friend has a debt she owes. It's through the courts. But the creditor died almost a year ago and she just found out. The wife is seeking the rest of the payments. When should she have been notified?

TheWillExpert Editor 22/06/2016 at 12:48 pm

No it's unlikely that you will be held responsible for these debts unless your name is including as joint account holder or guarantor etc.

Joe 21/06/2016 at 6:29 pm

My daughter recently died and has left a number of debts, namely catalogue and mobile and also a bank overdraft, she hadn't any assets and didn't leave any money, she had been unwell for a number of years and her only income was a disability allowance. She also lived in a care home for residents with mental health issues, as her next of kin am i reponsible for her debts? Kind regards Jo.

TheWillExpert Editor 21/06/2016 at 12:20 pm

The executor is repsonsible for paying debts and also recovering any money owed to the deceased. There is nothing specific that says in what order this should be done.

bob 20/06/2016 at 1:53 pm

hi my father inlaw passed away with an outstanding back loan but he has a large amount of cash still owed to him ,does the executor have to make sure all money owed is repaid to estate befor selling off his house to pay the bank loan back

TheWillExpert Editor 20/06/2016 at 11:27 am

Any debts will be payable from your brother's estate. If there are insufficient funds, his estate will probably be declared insolvent. Until you have his death certificate, you'll not be allowed access to any of his accounts.

concerned1 18/06/2016 at 1:55 pm

Hi my brother died leaving no will. He lived alone in rented accomodation and has no savings or assets. His bank account is overdrawn and to access it I would need to visit the branch. I really could do with a statement from them to find out his direct debits etc but wondering if I'll be liable for any of his debts including his back account?
I am his brother and next of kin but as yet haven't had his death cert. so cant access anything.
Thanks in advance

AR 14/06/2016 at 4:06 am

friends of mine were married before He died.She had not yet been named
on the house deed of the house he was making payments on.However,she was named as administrator of his estate.She made all the mortgage payments on the house to the bank.She has all cancelled checks saved.She's asking that because she made all the payments on the house can she claim the mortgage interest on her Tax Return?

RWarner 08/06/2016 at 4:04 pm

My grandad passed away back in January this year, he left no will, we just found out that he had not declared his partner has been living with him for the past 12 years and his partner had everything she even organised the funeral claiming she was next of kin, she's now moved out and the person who they were renting the property off knew she was living there all this time, now suddenly my mother has had a letter for council tax and they are saying if grandad hadn't declared his partner living with him that because my mum is his eldest child she would have to pay it all back. Is this right?

TheWillExpert Editor 08/06/2016 at 2:25 pm

As limited companies with no other directors you should not be held personally liable for the debts. As we don't have all the information regarding your/your father's circumstances, we cannot really give more comprehensive information and you might want to speak to a solicitor about this.

Pammie 07/06/2016 at 12:31 pm

Hi, my father passed away in Feb 2015, he had two limited companies in which he was the sole director. I have had two claims, one for each company, in March 2016 from a contractor claiming he has outstanding invoices which haven't been paid. This contractor never made any contact after my father passed, despite being a family friend, and now has taken it straight to the Small Claims Court. There was no assets and a balance of £101 in the company when my father passed. Could I be held liable for this debt? And surely they must have had to send requests for payment before going straight to court?

Lesleyneedshelp 19/05/2016 at 4:19 pm

Hello my husband passed away and I was executor of the estate. My husband was a sole trader with the business in his name. I now have had one of his business suppliers chasing a deBT for £3000 producing an invoice claiming they were not paid. Am I responsible for the debt?

Neilly 18/05/2016 at 4:21 pm

Can debts be sold/transferred between lenders and debt collectors and vice versa after death?

(So could a debt be sold by a bank to a debt collector prior to death and then, the debt collector, sell it back to the bank if the debtor dies as their policy is to write off debts after death? )

TheWillExpert Editor 06/05/2016 at 12:41 pm

The easiest way to establish this would be to take a look at the terms and conditions of the equity release plan. If your gran does not have these, they company should be able to supply them.

Ceb 04/05/2016 at 5:07 pm

I want to know what happens to my grants house after she dies she took out an equity release on it so how soon will they want the money when she gone? Will the house have to be auctioned off or will they wait for it to be sold on the market?

TheWillExpert Editor 20/04/2016 at 2:38 pm

When a person dies, their debts are paid off in the following order of priority:
Secured debts such as mortgage and secured personal loans.
Reasonable funeral costs and the costs of administering the estate.
Unsecured debts, such as credit cards, unsecured personal loans, gas, water and telephone bills, unpaid rent, Council Tax and other taxes, and repayment of overpaid benefits.
If, as you say, there is not enough money to pay the debts you should take advice from a probate specialist on which debts should take priority, and they should be able to inform the creditors that the estate is insolvent.

Charlotte 19/04/2016 at 12:16 pm

My mother passed away naming me as executor in her will. She had no assets whatsoever - there was nothing to leave to anybody. She was on benefits, state pension, had a few hundred pounds in a joint account and lived in local authority housing which she shared with her husband. She had a payment agreement for an old credit card in her name only. They are now chasing for the debt (which went from £3200 before I wrote to £960 now?!). I have informed them of the situation but they are continuing to chase her husband (despite having my details). They are asking for proof of her assets! How do I prove she has nothing other than the above? Is the onus on us to prove this or do they need to apply for this formally. I have tried asking for legal advice but keep being told to write to them and they will write it off. Again, do I have to produce evidence, if so in what form. Thank you

chalky 11/04/2016 at 3:47 pm

My mother took out equity release in 1999. She passed away last year. My sister and I are joint beneficaries. The council involved (East Lindsey Council) have now after probate has been issued have sent us a bill for the next 12 months (the property has not been sold yet).
We own 10% of the property Phoenix Life own 90% the rest. Do we continue to pay 100% or should the cost be fairly sorted as per the percentage owned as above?

TheWillExpert Editor 15/03/2016 at 12:23 pm

This may depend on the terms of each specific lender so it's worth asking them what would happen. If you've had the mortgage for a number of years, you can sometime get the guarantor liability removed anyhow. Some companies will allow the option of any guarantee liability being paid off from the guarantors estate, or may agree to the transfer of the deceased's property as to release any charge remaining. If you are concerned, it might be useful to speak to a financial adviser.

Splonk 14/03/2016 at 2:40 am

My mother went garentor for my house if she passes away do we loose our home we are up to date with all payments

Andrea366 24/02/2016 at 2:24 pm

I left the marital home with 3 children as husband refused he has now passed away he left a few debts can I pay them and move back into our marital home .

TheWillExpert Editor 09/02/2016 at 11:23 am

We try and answer as many questions as we can. There are times, during holidays and some weekends etc where questions do not get answered. You can of course as reader, respond to any questions - and other readers may be able to resond to yours if they've had a familiar experience.

notsnowhite 08/02/2016 at 12:09 am

Hi, just wondereing whether or not to pose my question as there doesn't appear to be any responses since Sept 2015?

TS 03/12/2015 at 10:50 pm

Correction- she passed away 3 years ago.

Thank you.

BW

TS 03/12/2015 at 10:49 pm

Hi,

My mum passed away 2 years ago. There is a huge outstanding interest only mortgage on the property- it was held in her sole name. She had no life insurance.

Now, her husband has lived in the house for 3 years since her death-now with his new wife.

He ceased paying the mortgage payments 2 years ago, with the payments and interest accruing onto the initial mortgage amount. I wasn't aware that payments had stopped.

He and I are both executors, trustees and beneficiaries of her will.

I do not live in the property. He has lived there for the three years since mum passed away.

Who is liable to pay the mortgage?
Does he have more responsibility to pay it, as he is currently living in the house for free?

Thanks.

BW

Essex1972 02/11/2015 at 8:47 pm

Evening
My father passed away at the end of May and bt are now asking for their account charges. However the proceeds from my fathers estate which totalled 7000 after funeral costs have now been distributed. How long can someone or any organisation take before requesting money from the estate. My understanding is two months from the date of my fathers death

Thank you

Blueboy 19/10/2015 at 8:52 pm

Hi my mum.recently passed away and left as as joint executors,she owes 35 000 on mortgage what will happen and what should we do

V 01/10/2015 at 12:30 pm

I am executor of my father's will who has just died. I knew he had some debts in 2008 but not sure if he still has them or not or can remember who they are with. I understand I can do a Legal and Public Notice to debtors. Is this enough to protect myself from liability if no one comes forward? If I do find details of who the debt was with do I have to contact them?

TheWillExpert Editor 23/09/2015 at 2:34 pm

Unsecured loans are a low priority on the list of debtors to be paid following a death. It would be fair of the company to freeze the interest until probate is complete - Citizen's Advice may be able to help in this instance. If there isn’t enough money to pay an unsecured load seek advice from a probate specialist they should inform the creditors that the estate is insolvent.

didiboo 21/09/2015 at 10:45 pm

Hi sorry if this is in wrong area. Can any one help. My dad passed away and just after we found a letter addressed to him saying he owed money on an unsecured loan. If he paid the amount shown the debt would be cleared. We rang explained that dad had passed and within weeks recieved a new amount for 4 times the amount originally asked. Apparently now he has died it has been passed on to another department. Can they do this? Should we not just have to pay they original amount.? Thanks

vinho 18/09/2015 at 10:17 am

My father died a couple of months ago he was very meticulous where paperwork was concerned. My mum recently received a letter from the bank regarding 2 unsecured loans in his name which she knew nothing about we dont understand as like i said he kept all paperwork regarding anything and everything but there is no paperwork or any reference to these loans at all that we can find. My mum is worried sick about this as it amounts to £15.000 which she just hasn't got. The house belongs to my mum not my dad as my gran left her this as a deed of gift please help.

Thankyou

TheWillExpert Editor 02/09/2015 at 9:58 am

If the details of the Will do not concur with what has actually happened, you would need to seek the advice of a solicitor. The Will may be valid.

Shelley 01/09/2015 at 4:00 pm

Yes. It has the signatures of two witnesses.

TheWillExpert Editor 01/09/2015 at 2:17 pm

Was it signed in the present of two independent witnesses? (i.e not named in the Will).

Shelly 01/09/2015 at 9:13 am

My mother recently passed away and left unsecured debts on 3 credit cards that were solely in her name. My father is the executor but I am trying to help him negotiate the process. There is an informal will (never registered) that leaves two pieces of jewellery to 2 close relatives, but those pieces were passed to those people over 5 years ago. Other than that, everything else has transferred to my father's name. What is the situation with the informal will? Thanks.

TheWillExpert Editor 27/08/2015 at 2:28 pm

Check this with a solicitor. Usually 6 months is the time limit for creditors to come forward after death. If you have used all your powers to trace any debts in existence then you should not be help responsible if others are uncovered after this period of time.

mike 26/08/2015 at 7:33 pm

i am Executer to my late furthers estate and I am concerned there may be outstanding debts that I have not uncovered. How do I protect myself from later comebacks once I have distributed the estate?

TheWillExpert Editor 26/08/2015 at 12:22 pm

Your brother will need to look at all the details of the mortgage and any life insurance that was taken out to cover it in the event of death.

TheWillExpert Editor 26/08/2015 at 10:40 am

Find out what kind of scheme it is and whether it's provided by a member of the Equity Release Council. If it is, then it should have a "no negative equity" guarantee. This means there will be no debt left to the estate, so you would not be liable.

DJ 24/08/2015 at 1:47 pm

My father has just died and my brother is the guarantor of my fathers mortgage. Part of the hse belongs to my dads 2nd wife and his 3rd wife lives in the house. In probate will the morgage be paid off when the hse is sold. Will my brother be liable to keep up payments for the morgage now that dad has past!

Deb 23/08/2015 at 7:34 pm

Both myself and my brother are executors for our parent's wills. If they both die are me and my brother liable for the equity release on their house?

Suze77 15/08/2015 at 7:41 am

My mother owns her property jointly with my father and they have a very small amount in savings. My father has just passed away leaving a personal unsecured loan in his name only. Once the funeral has been paid for there will be a tiny amount left in savings and the jointly owned house which will transfer to her name. Would she be liable for the loan? She has been left with just a basic state pension. Everything else is in joint names except that one loan. Many thanks.

Wronglish 10/07/2015 at 6:01 am

Do I have to pay off my deceased husband's credit card debts if it wasn't in joined names and he had a mortgage on the property, where I live now with our children? Everything was on his name and no other money in his estate. Thank you

TheWillExpert Editor 03/07/2015 at 1:55 pm

@Madmonk. She is only liable for your debts if you die and she is the beneficiary (even then, this is not always the case).

Madmonk 30/06/2015 at 8:52 pm

My father passed away and left the estate in trust while my stepmother was alive. Stepmother has now passed and fathers home has now been sold. My question is this, I am involved in an IVA and my sister who is the executor is saying that she needs my IVA administrators details which I am not prepared to disclose as my partners financial matters are part of the joint IVA . My sister is saying that she must have this information as if the IVA is not settled then she becomes liable for it.

TheWillExpert Editor 14/05/2015 at 11:53 am

@Sak. Ask the council for a list of all the payments due and the payments made. If your stepfather made his payments by cheque, direct debit etc, then there will be a record of all the payments he made. If he paid in cash, there may be paper receipts etc. Remember Council Tax is one of the last priorities when clearing debts on a person's estate.

SAK 09/05/2015 at 11:09 pm

My Step-father past away 8 years ago, but a debt collector has recently got in touch stating that they have been appointed by the council to "recover outstanding Council Tax", that he supposedly owed. I know for a fact that the Council Tax was paid in full for the duration of their marriage (that lasted 5 years until his death) and we went to the Council together following his death to let them know of his passing and to deal with any problems arising from it. We were not told about any of such debts then. The property had no outstanding Council Tax debt and there were no issues with my step-father paying council tax prior to his death on a monthly basis, thus the Council couldn't have been chasing him for an outstanding amount then. But suppose there was an outstanding amount on a previous property or concealed by my step-father prior to marriage. Can this debt collector try to make us liable for a debt more than 13 years old that was never chased up by the Council itself following the notification of death? Thank you

TheWillExpert Editor 07/05/2015 at 2:21 pm

@jean. Probably. It depends on what your brother wants and whether anything was written down at the time of the agreement that covered this point.

Jean 01/05/2015 at 2:37 pm

My brother loaned my mother a sum of money to buy her retirement bungalow. The loan is accruing interest. My mother's will states that this loan including interest be paid off from the sale of the bungalow. If it takes several months for the property to be sold does this loan still accrue more interest after her death and before the property is sold.

TheWillExpert Editor 23/04/2015 at 2:31 pm

@klengall. Any of the deceased's estate should be used to pay for funeral costs and then clear the debts in the following order: Mortgages, rent arrears; water rates; council tax; fuel; personal loans and credit cards and last, any debts to the Exchequer such as outstanding tax or overpaid benefits.

Klengall 21/04/2015 at 12:33 pm

Under the new Pension legislation where by a pension can be paid out 100% tax free does this mean that the funds then have to be used to clear any credit card debt tht the deceased left behind?

TheWillExpert Editor 14/04/2015 at 12:40 pm

@val. Your husband's estate should be used to pay off the debts. If there is insufficient money in his estate, then you should not usually be responsible for the debt if it wasn't in joint names. Check with your solicitor over this.

val 11/04/2015 at 9:28 pm

my husband recently died and he had an unsecured loan 16 years ago before he met me i was not the guarantor to it and the loan company has recently contacted me regarding it saying that i will have to pay the outstanding as he never paid it back. do i have to pay it back if he took it out before we met ?

TheWillExpert Editor 12/03/2015 at 12:02 pm

@martyn. Is the partner (whose name is on the IVA) still around? If so, then he may be liable for this particular debt. The remaining debts should be paid from the estate. You should seek legal help with this.

martyn 10/03/2015 at 12:13 am

hello my mum has recently passed away she did not get chance to make a will Me and my sister are the only two remaining family ,The property is estimated at £95,000, I have since done a land registry on the property and found out there is 2 restrictions on there ,The first one being Santander which is for £17,000 they are the mortgage creditors .The second being a iva for £49,000
the iva is joint on there with me mum as the main candidate and her partner who are not married as the second name on there, where do we stand with this can any one help please

TheWillExpert Editor 16/02/2015 at 12:25 pm

@john. Payment of debt is decided during/after the probate process. There is normally an order in which debts are cleared as follows: Debts like mortgages and secured loans. Funeral and administration costs Unsecured debts like credit cards, unsecured personal loans and utility bills etc. Your solicitor and/or financial advisor should inform you of the protocols where specific assets are assigned to different people

John 13/02/2015 at 2:02 pm

Question - on the sell of assets to pay off a debt. If I give an example, if a person dies and leaves a debt of £30k in the form of a secured loan against the home. The assets left in the estate are the house which is left in the Will to Fred, a car left in the Will to Jim and Jewellery left in the Will to Sarah. My question is "which asset(s) get sold to pay of the debt ? The car and jewellery would cover the debt, but that would leave Jim and Sara with nothing and Fred with a house. Welcome a quick answer. Thank you

TheWillExpert Editor 09/02/2015 at 11:37 am

@GSG. you really need to seek the help of a financial adviser here as there are several different froms of pension death benefits.

GSG 04/02/2015 at 12:48 pm

Are death benefits from (a) a personal pension (b) a workplace pension scheme liable for my deceased partner's debts? I had been advised no (these are death benefits, not pension payments), but the private pension scheme are now asking for all debts to be listed as part of an assets and liabilities statement before benefits are released to anyone. Can you clarify please? There is no estate at all other than these death benefits which we've been informed about.

PS the company dealing with the private scheme payments are the same company that one of the debts has been passed to - so they will be aware of that one at least.

TheWillExpert Editor 21/01/2015 at 2:43 pm

@kclem. The rules on pensions have changed so you will need to seek professional advice. Usually all debts are paid out of the estate, so your son will need to investigate the terms of your father's pension and also his will. Professional legal/financial advice may be needed.

kclem 19/01/2015 at 3:49 pm

My ex husband has died leaving a large amount of debt for which he had an IVA.
Our son has been left to clear up this mess as the executors named in the will have both died and our son is next of kin and beneficiary.
There is a £30,000 pension will this be taken to repay my ex husbands debts.

TheWillExpert Editor 08/12/2014 at 12:23 pm

@Georgina Homes. Whose child is the child support supposed to be for? Your son or your child's father?

Georgina Holmes 05/12/2014 at 5:03 pm

My sons farther died 14months ago and now the csa want 9.000 pond saying he owed it for a child he had .does my son have to pay this .

TheWillExpert Editor 06/11/2014 at 12:30 pm

@matty. Look at the terms of the PPI - death is usually covered, which means the loan will not need to be repaid from the estate (i.e the insurance will cover it)

matty 05/11/2014 at 12:53 pm

my best friend died with an unsecured bank loan with ppi will this have to be repaid he has assets and small amount if savings could you please offer advice ,appreciated Matty.

big alsie 12/09/2014 at 4:38 pm

My mother pass away on the 13 Jan 2013 and was a house owner. I am the executor of her will. She had an equity loan on the house and so it is being sold to pay of this loan. How ever a letter came from a sheriffs office dated the 17 Jan 2013 stated my mother owed council tax. I wrote a letter to the Sheriffs office informing them my mother had died on the fore mentioned date. This letter was never answered and no further request was made to pay the council tax she owed. So do I have to pay this or not since no official demand has been made of me. In fact do I have to pay any other debt to any one who has not made an official demand.

don 12/08/2014 at 11:56 am

My mother died in Feb 2013, in Scotland, and her estate was wound up by the solicitors about 7 months later. Recently, over a year after her death,a bill arrived from the local authority for £6000 for her share of common roof repairs. As this has arrived more than 6 months after her death, am I, her son and beneficiary, safe to ignore this bill?

Stu 11/09/2012 at 9:34 am

My mother passed away in May, she had a unsecured personal loan, with no PPI. The only estate she had was her life insurance policy, and now the bank are chasing repayment of the loan.
It is my understanding that as there was no other assets apart from her life insurance that the bank can not demand the repayment of an unsecured loan from her estate. Is that correct? Can you advise on how to deal with this.

RedRiver 23/08/2012 at 12:29 am

My Father died recently leaving 2 Residential Properties (his house & mine) and 3 Buy to let Mortgages. I am the beneficiary and the family solicitor is the ecec. My father had substantial debt including Inland Revenue, Unsecured Loans, Credit Cards, Overdraft. His properties are all in negative equity however they do produce an income after the mortgage payments. I believe my fathers estate will be declared bankrupt/insolvent since the solicitor will protect himself. My question is, Am I able to claim title to the properties given the fact my father had "no interest" in them i.e. No Equity?
I have not yet given the solicitor the interim death cert, i believe it would be easy for him to resign if I asked him?
I would much apreciate some help, my father worked himself into his grave to create his portfolio and he would turn in his grave to see the admin & legal costs swallow everything. Thanks

Greg 14/07/2012 at 6:36 pm

A family member is one of the beneficiaries to an estate which includes a property in a desirable location that should not be difficult to sell. There a a large number of beneficiaries and the assumption is that all debts have already been paid. There was no spouse (ever). My question is does the solicitor who is acting on behalf of the estate have to sell the house or will each of the beneficiaries be asked if this is what they want as obviously now is not the best time to be selling property. Also, the property is said to be dilapidated and so a sale (possibly at auction) would not be in the best interests of the beneficiaries until work has been done on the property. What are the rights of the beneficiaries in this situation and do each of the beneficiaries have the same rights as each other ?

Liz 09/07/2012 at 6:44 pm

My husband was self employed when he died. I was the named executrix. His accounts were 3 years outstanding which I completed and the accountant sent in self assessments. My husband deferred his government pension and took a lump sum the year before he died. The lump sum was taxed at source and I was told the amount had to be included in the accounts as income.

There is no money left following payment of funeral and legal expenses.

Am I bound to pay the Inland Revenue myself as his spouse, will I be expected to sell an asset such as the car in order to pay them?

Ynot 11/06/2012 at 10:29 am

Question after probate and the sorting out of an estate what would happen if a new outstanding debt appeared against the deceased not previously known?

PAULSUN 18/04/2012 at 10:21 pm

If a person dies, the debt does not necessarily die with them.
This may be true in the Uk but here in Spain the debt may stay with the property and when you buy it is yours.

Ask The Will Expert a question

Ask our editorial team a question and we will reply with our advice. Tell us as much about your situation as you can: the more detail you give, the more useful our answer can be.

You do not need to use your real name. Please do not include your full address, phone number, email address, or the names of other people. We may edit or remove identifying details for privacy and legal reasons.

Comments are moderated before publication.