• Welcome to the LegalBeagles Consumer and Legal Forum. If this is your first visit to LegalBeagles and you need assistance then you can ask a question here;
    Create a Thread
    Please Register to get the most out of the forum. Registration is free and only needs a username and email address.
    REGISTER
    Please do not post your full name, reference numbers or any identifiable details on the forum.

Estate - order of payout

Collapse
Loading...
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Estate - order of payout

    An acquaintance is unsure of the order of priority for distribution.

    Deceased died intestate.
    Daughter acting as administrator.
    Total value of estate a nominal 2500, so no probate required.
    Funeral will be 1950.

    Obviously, funeral expenses are settled first, but what of the other creditors? Is there a pecking order, or is it pro-rata? In no particular order, these are the bills:

    DWP ( unknown).
    Gas ( unknown).
    Water ( unknown).
    Electric ( unknown).
    Council tax ( unknown).
    House clearance (approx 100).
    Administrators expenses (approx 200).
    Housing Association rent ( unknown).
    Warden charge ( unknown).
    Nursing Home (partially assisted only. Approx 860).

    It's clear that the estate is going to go bankrupt, so there's going to be a row (the Health Authority have already tried to con the daughter into signing a document stating that she accepts personal liability for the debts of the deceased).
    Tags: None

  • #2
    Re: Estate - order of payout

    Hi Enquirer

    My understanding is that the first priority is the funeral and all costs (inc. administrative costs) relating to the death itself. If the executor is a professional ie solicitor or accountant, their fees would also be part of that priority.

    The next would, as usual, be the taxman (so DWP and Council Tax would take precedent after the above).

    Following that, AFAIK if there's any money left it would be apportioned Pro Rata as in any other insolvency.

    I'm glad she has you as a friend to tell her not to be bullied into signing any documents indicating personal liability.:nono:

    It may well be that, upon being informed of the death, many of the creditors will write off the debts.

    This might be useful: http://www.insolvencydirect.bis.gov....Insolvents.htm

    HTH x

    Comment

    View our Terms and Conditions

    LegalBeagles Group uses cookies to enhance your browsing experience and to create a secure and effective website. By using this website, you are consenting to such use.To find out more and learn how to manage cookies please read our Cookie and Privacy Policy.

    If you would like to opt in, or out, of receiving news and marketing from LegalBeagles Group Ltd you can amend your settings at any time here.


    If you would like to cancel your registration please Contact Us. We will delete your user details on request, however, any previously posted user content will remain on the site with your username removed and 'Guest' inserted.
    Working...
    X