View Full Version : Question about death and debt
pencil shavings
29-04-09, 10:07 PM
What happens?
say you own money to credit cards, does the debt get written off? or does it have to get picked up by someone, say children or other half?
jamesterror
29-04-09, 10:09 PM
Would usually come out of your assets.
pencil shavings
29-04-09, 10:14 PM
and if you have none?
Your estate would be liable but if you have none the the debt dies with you.
Your estate would be liable but if you have none the the debt dies with you.
Yes
you always have an Estate, but if you mean if your assets are insufficient to meet your debts, then yes you are right. (unless debt is jointly held with someone still living
http://www.thewillexpert.co.uk/DebtAfterDeath.html
husky03
29-04-09, 11:48 PM
costs a feckin fortune to die
pencil shavings
29-04-09, 11:49 PM
Yes
you always have an Estate, but if you mean if your assets are insufficient to meet your debts, then yes you are right. (unless debt is jointly held with someone still living
http://www.thewillexpert.co.uk/DebtAfterDeath.html
thanks.
I had a read of that and from my understanding...
if you have no estate (ie rented house and no savings) apart from the minimal contents of your house, then once that has been sold, any remaining debt that is in your name alone will get written off?
Jamiebridges123
30-04-09, 12:07 AM
Brb, Canoe...
jamesterror
30-04-09, 12:18 AM
thanks.
I had a read of that and from my understanding...
if you have no estate (ie rented house and no savings) apart from the minimal contents of your house, then once that has been sold, any remaining debt that is in your name alone will get written off?
In a simple answer, yes. Bearing in mind they are not partnered.
Unless they have a partner by marriage, or live with a sibling in the same house hold and share equal rights (there is a similar precedent case for this I think with inheritance of property, possessions and debt).
timwilky
30-04-09, 07:33 AM
costs a feckin fortune to die
not quite, costs a fortune to get rid of the dead. We did my bro in law on the cheap and it was still over 2 grand for the funeral. He left 5 grand in a drawer to sort things out like funeral, wake, probate, estate agents, solicitors etc and some bitch nicked it whilst he was in the hospice.
Owenski
30-04-09, 08:33 AM
not quite, costs a fortune to get rid of the dead. We did my bro in law on the cheap and it was still over 2 grand for the funeral. He left 5 grand in a drawer to sort things out like funeral, wake, probate, estate agents, solicitors etc and some bitch nicked it whilst he was in the hospice.
Thats sick!
Isnt this what the whole who-ahh about getting insurance on credit cards debate was about on the news a while back. People were paying for their insurance during life then when they died the money was still taken out of thier estate. Bloody awful when you think about it its takin advantage of the people who'll just be wanting to get things sorted out and finsihed.
Miss Alpinestarhero
30-04-09, 08:37 AM
costs a feckin fortune to die
Yup it does. My grandad died not too long ago and the cost was absolutely astonishing..i think over 2k? Even though my nan opted for the cheapest things in order to save money it really added up.
Luckypants
30-04-09, 09:23 AM
not quite, costs a fortune to get rid of the dead.
Yet another reason for life insurance.... everyone should have it. It is relatively cheap to get say 10K of cover to pay for funerals, incidental expenses and any debts. Takes some of the stress away from those left behind.
petevtwin650
30-04-09, 09:31 AM
Yet another reason for life insurance.... everyone should have it. It is relatively cheap to get say 10K of cover to pay for funerals, incidental expenses and any debts. Takes some of the stress away from those left behind.
Yes, but then that sum is part of your estate isn't it? so if you owe money they will have first call then whatevers left, if any, could be put towards funeral expenses.
I have 20k life insurance, but my debts far exceed that and I have no assets whatsoever. Thinking I'll end up being a guy on a bonfire somewhere.
Luckypants
30-04-09, 09:37 AM
Yes, but then that sum is part of your estate isn't it? so if you owe money they will have first call then whatevers left, if any, could be put towards funeral expenses.
That should not be a problem, just take sufficient cover to pay off debt.
I have 20k life insurance, but my debts far exceed that and I have no assets whatsoever. Thinking I'll end up being a guy on a bonfire somewhere.Well I have significantly more cover than that to cover my liabilities. I believe the point of the life cover should be to have sufficient to pay off any debts, pay the necessary AND leave a some for any dependants. Luckily I have no dependants in the financial sense.
I've dealt with a few insolvent estates. Debt is always a personal matter unless it's secured. So if there isn't enough to go round then it dies with you and the creditor will write it off.
petevtwin650
30-04-09, 09:45 AM
That should not be a problem, just take sufficient cover to pay off debt.
Well I have significantly more cover than that to cover my liabilities. I believe the point of the life cover should be to have sufficient to pay off any debts, pay the necessary AND leave a some for any dependants. Luckily I have no dependants in the financial sense.
That is easy to say.
I'm not bleating or feeling sorry for myself, cos I've had a good life, but my debts are over 100k. Try getting affordable cover at my time of life.
TBH, all I would want, and all we all really need, is to be cremated and that's it. No wake or headstone or wreathes.
punyXpress
30-04-09, 09:50 AM
Is that why you don't go on early November rideouts, Pete - I thought it was the cold?
punyXpress
30-04-09, 09:56 AM
Thinking I'll end up being a guy on a bonfire somewhere.[/quote]
Don't you have to blow up Parliament for that? :smt073
Now there's a thought!
Luckypants
30-04-09, 10:21 AM
That is easy to say.
I'm not bleating or feeling sorry for myself, cos I've had a good life, but my debts are over 100k. Try getting affordable cover at my time of life.
TBH, all I would want, and all we all really need, is to be cremated and that's it. No wake or headstone or wreathes.
Pete, it was not a pop at you - I was making a general point. I appreciate it may not be so easy getting cover as you get older, my current policy was taken out 12 years ago and is cheap for what I'm covered for. I'll carry on paying it as long as possible because it is good value.
That should not be a problem, just take sufficient cover to pay off debt.
I've dealt with a few insolvent estates. Debt is always a personal matter unless it's secured. So if there isn't enough to go round then it dies with you and the creditor will write it off.
I can see the point in life assurance for your dependents, but not for your debts - stuff them :twisted:
I have term assurance not the other kind so after 25 years it will run out & i'll have no cover :smt102
I can't afford to die :neutral:
Pete, it was not a pop at you ... as you get older.
Not much you weren't ;)
:lol:
Jamiebridges123
01-05-09, 06:57 AM
Then again, if you die it's no longer a burdon on your shoulders at least.. ;)
petevtwin650
01-05-09, 08:29 AM
We're all friends here, I was just showing that there are people who have different approachs to life and death.
Clearly, if I was really that bothered about burdening my net of kin with funeral expenses I could take measures. I gave my daughter a substantial amount of Premium bonds years for just that eventuality but have since used them. Is there a specific policy that goes only to funeral costs and not into the estate that anybody knows about.
Brb, Canoe...
:lol:
I've dealt with a few insolvent estates. Debt is always a personal matter unless it's secured. So if there isn't enough to go round then it dies with you and the creditor will write it off.
I'm very glad I wasn't aware of that a while back. The feelings invoked when I thought that personal debt would be chased via dependants was one of the things that stopped me doing something very stupid. :(
punyXpress
01-05-09, 09:34 AM
Pete: I'm sure you can say who the beneficiary is to be in the event of a claim. Could be anyone & is kept outside your estate.
Would just beware of funeral providers who advertise these things as I imagine they are the most expensive way of buying the service.
:shock:My dad died suddenly last year [age 65] owing thousands of pounds.
My poor mum [now literally!], age 75, had to pay every penny. At one point we thought she would lose her house.
She would get threatening 'phone calls and letters.
Grieving is bad enough without having to deal with all the money cr@p
kurtis.randle
02-05-09, 10:03 PM
What happens?
say you own money to credit cards, does the debt get written off? or does it have to get picked up by someone, say children or other half?
why are you planning to die?
had to pay every penny.
What advice did she get?
I'm sure the creditors said she had to pay :roll:
Sorry for your loss & the subsequent problems
Thanks Stu. We didn't know Dad owed 50k to credit cards!!
Got too much for my brother and I that we had to consult a solicitor.
Fortunately he had life insurance, but it all had to go to pay off the debt.
Mum was left with nothing. These things happen I suppose
Thanks for your kind words
Thanks Stu. We didn't know Dad owed 50k to credit cards!!
Got too much for my brother and I that we had to consult a solicitor.
Fortunately he had life insurance, but it all had to go to pay off the debt.
Mum was left with nothing. These things happen I suppose
Thanks for your kind words
But the point here is that there were assets in the estate, namely the life policy.
But the point here is that there were assets in the estate, namely the life policy.
So, I don't want to upset Dawn, but with proper estate planning - say from a solictor :-dd - it could have been arranged prior to death that the life assurance went directly to a particular heir, be kept out of the estate and the debts are just w/o?
So, I don't want to upset Dawn, but with proper estate planning - say from a solictor :-dd - it could have been arranged prior to death that the life assurance went directly to a particular heir, be kept out of the estate and the debts are just w/o?
Er possibly. There are two issues here. First is that the living need to be careful that they are not party to defrauding creditors. However if you don't know about the creditors (as in Dawn's case) then the position is rather different. Second is that if you out assets beyond reach voluntarily (ie for no consideration), then the creditors can force the PRs to reopen the deal, and can apply to the court if necessary to have themselves appointed as PRs and then bring a transfer at undervalue action.
Er possibly. There are two issues here. First is that the living need to be careful that they are not party to defrauding creditors. However if you don't know about the creditors (as in Dawn's case) then the position is rather different. Second is that if you out assets beyond reach voluntarily (ie for no consideration), then the creditors can force the PRs to reopen the deal, and can apply to the court if necessary to have themselves appointed as PRs and then bring a transfer at undervalue action.
I was thinking with life assurance that it could go to someone specifically instead of first into your Estate. Thereby avoiding inheritance tax as well as creditors?
Or is that not possible :???:
I was thinking with life assurance that it could go to someone specifically instead of first into your Estate. Thereby avoiding inheritance tax as well as creditors?
Or is that not possible :???:
Yes of course it is, it's frequently done. The policy would be written in trust. It's a perfectly acceptable form of estate planning. But if you arrange things purely so as to avoid creditors, the creds mightn't be too pleased.
vBulletin® , Copyright ©2000-2025, Jelsoft Enterprises Ltd.