Debt owed to Estate

[PinkSalad]

The solicitor/executor of my mother's estate is chasing a loan now owed by the recipient. The loan was secured against the recipient's property. The recipient is disputing the interest the solicitor is charging.

I specifically recall my mother stating to me the solicitor asked her about interest, and she said no as long as the loan was returned. I can vividly recall this conversation. The solicitor/executor is now insisting on pursuing this loan via Sherriff Officers, as the recipient of the loan is disputing the interest, understandably.

I'm concerned the solicitor is creating work for themselves and in doing this will only serve to cost all the beneficiaries of the estate money, taking this route will this mean going to court?. How much are court costs for chasing a debt, including solicitors, approx?

Is there anything we can do as beneficiaries? If the recipient of the loan agrees with us to return the loan amount within a set period of time and in return the interest will be wiped? Can we put this to the executor?


Any help on this would be greatly appreciated.

[Pezza54]

If the beneficiaries believe that the executor is wasting estate resources by chasing a debt that is unlikely to be recovered they may have a claim against the executor.
Before starting a costly court claim, the main beneficiaries, if in agreement, should all sign a formal letter asking the executor to stop chasing debt interest and pursue the debt alone.
This letter should prevent beneficiaries from making a future claim against the executor for undervaluing the estate in respect of debt interest.

[PinkSalad]

If the beneficiaries believe that the executor is wasting estate resources by chasing a debt that is unlikely to be recovered they may have a claim against the executor.
Before starting a costly court claim, the main beneficiaries, if in agreement, should all sign a formal letter asking the executor to stop chasing debt interest and pursue the debt alone.
This letter should prevent beneficiaries from making a future claim against the executor for undervaluing the estate in respect of debt interest.

Thank you for your reply.

What happens if the solicitor pursues the debt, and the person doesn't pay and we've asked the solicitor to take away the interest element? Can we sign a letter to get the solicitor to give this person the option to just pay the loan within x amount of days and no interest will be added? I'd like the executor to use the interest element tactically (as much as I disagree with the interest element), to obtain the core part of the actual loan value.

The loan was secured against that person's house (£12,000), and I obtained the documentation on this from the land register for personal confirmation.

One last thought, Is there a particular way the letter should be posted? A lot of things have gone on with this estate situation and I don't trust the solicitor, unfortunately, although I have tried to be nothing but good with this person.

Thank you for your quick reply.

[Pezza54]

Yes a carrot instead of a stick may prove more successful.
Post "signed for" 1st class

[PinkSalad]

With the debt secured against the property, can we still put a stop to the executor starting court proceedings, if the person doesn't pay the debt? What will happen to that money attached to the property? Can we just play the waiting game with it until the property is sold?

Another thing. There is another executor, but that firm partner doesn't deal with the estate, and we have never met that person. Do we need to include that person in the letter?

[Pezza54]

In your first post you said the debtor was disputing the interest, not the loan itself.

What are the terms of the loan. In particular how much is outstanding, how much time before the debt is repaid and has the debtor kept up with repayments.

You only need to write to the executor dealing with the estate. It is this executor's responsibility to involve the other executor

[PinkSalad]

Unfortunately, we have not been kept in the loop from the executor, apart from recent communication where her hand was forced, and therefore we found out about possible court proceedings.

We only knew about the interest very recently, as there were words of 'communication' between a beneficiary and the debtor. Once this incident took place, we were then aware of the interest the debtors refusing to pay. I didn't know this incident was going to occur, however, it did bring things to light it sounds like it went okay.

We know the debtor has until Monday to pay before court proceedings, which was in communication from the solicitor where their hand had been forced. I wasn't too bothered as I was happy to let the solicitor get on with doing her job, I was leaving it for 9 months until this came to light.


We do not know the terms of the loan, as we haven't been shown anything.

We knew the loan was to be paid after my mother died. She lived in her deceased partner's house and had the right to live in it. Once she was no longer in the house (moved or died) then the sons would sell the house and the money was to be paid from this. The loan was payable on death according to a recent communication from the solicitor (yes, but he the debtor needed time to pay). I understood it to be payable once this house was sold, although I've not seen any documentation on it and there is nothing in my mother's things on it. It was known the person (the son) wouldn't have had the money to pay the loan until their deceased father's house was sold. The house was sold within 3 months of my mother's death, and keys to the house were only handed over about 6 weeks after she passed. In fact, the keys that were handed to the solicitor had to be requested from the solicitor as I had given the son's keys from one of the neighbours who was a keyholder. They put the house up for sale very quickly and it went quickly. I was very keen for them to get their house sold.

Although the debtor is disputing the interest, this is what we know, nothing in writing, The debtor isn't good at keeping up with their bills even when they have money. They do have legal representation.

No payment on the debt, as far as I'm aware, has been received, the full debt is outstanding secured against the debtor's house.

Interest has been added since the date of death, we were told that in recent communication.

[Pezza54]

I am guessing that it was the solicitor, the executor, that set up the loan, and has knowledge of the loan terms.
My advice has not changed. Main beneficiaries should write to the solicitor. If the solicitor loses the court claim there could be substantial legal fees deducted from the estate. The beneficiaries may decide to sue the executor/solicitor for professional negligence

[PinkSalad]

You guessed correctly, and I can now understand why you came to that conclusion.

I've found the solicitor to be tactical in their working way. I can't see this being straightforward, as I know what this solicitor is like. Previously, when there were issues with the house my mother lived in after her death, we contacted the solicitor, and she didn't reply. It was an ongoing situation and the sons contacted their solicitor (as we know now). When I did eventually receive communication from the executor/solicitor, she confirmed the email sent to their solicitor/estate agent and sent us a copy I'd requested. She said she forwarded the email to their solicitor but when it came through it was the secretary's email, as we know who the person is. That might be ok?

We had asked her to go directly to their solicitor/estate agent to obtain the loan directly from the sale of the house. This is what was sent to the secretary's email - "can you let me have sight of the proposed irrevocable mandate, or do you wish me to prepare this?", with regard to the loan. Did she do what we asked her to do? At the time of being sent this email, we were also told by the executor/solicitor she never heard back from their (debtor) solicitor. After communication with the debtor, this person said our solicitor/executor didn't reply to their solicitor and was ignoring their solicitor. Both solicitors were saying the same thing to clients on each side. Both solicitors have property departments.

My concern is sending this letter, and then her does something that will be sneaky, as above, as I don't believe either solicitor on either side. Can we inform the debtor directly, we asked the executor? Can we write a letter to their legal representative confirming what we've asked? We could do without the hassle of a future claim and any sneaky solicitor tactics, it's been a tough year.

[PinkSalad]

Thank you for all your responses.

Another thing I need to ask. There are 4 beneficiaries. 1 beneficiary requested an interim payment, this was agreed upon, and they were given a value after the solicitor/executor's hand was forced. Another 2 then requested a payout. Going on what the original person agreed, then the other two should have received another 2K/1K each. Does she need to keep the payments consistent with the interim payout? I can wait on mine, but they all wanted their money.

In terms of financial consistency, this doesn't sit well with me.

[PinkSalad]

I am guessing that it was the solicitor, the executor, who set up the loan and has knowledge of the loan terms.
My advice has not changed. Main beneficiaries should write to the solicitor. If the solicitor loses the court claim, there could be substantial legal fees deducted from the estate. The beneficiaries may decide to sue the executor/solicitor for professional negligence

Really need your help.

She has replied, to the signed recorded letter, and has said the loan was registered in the Books of Council and Session, and she doesn't need to go to court to obtain a judgment. Am I able to obtain a copy of this loan agreement? Is it publicly available for me to obtain? Plus, she is saying all the costs will be recoverable from the debtor as Sheriff officers will be instructed. What happens if that's not successful?

What can we do now? I'd rather not opt for this interest, as my mother didn't ask for it, as they told me time and time again they didn't want the interest.

The solicitor is also saying if we want to return the interest after the payout to the debtor, then that's up to us as beneficiaries.