Executor advice

[crad2]

Hi, I have just registered looking for support please.
My Aunt has passed away age 91. I am named executor. I have to apply for probate which i know i can do myself if i wish. There is a property involved which had a "shared appreciation mortgage" taken out a number of years ago by my aunt. Am i still able to apply for probate myself or does it need to be done by solicitor due to this fact? Is probate application straightforward or would you advise me against it myself?
Many thanks

[enaid]

Re: Executor advice

Hi and welcome,
it seems as lot of these were sold in the 1990s looking for a good way to borrow, truth is it's a good way to lend and the banks come out tops yet again.
Probate is not difficult to do yourself I have just done my MILs, if I were in your position though I would get some proper advice on the mortgage, make sure you are fully up to speed with it and what it means re the sale of the property. As the lender has a massive interest in the property you need to know everything is being done fairly. In the past people have taken legal action against the banks over this product but to no avail, maybe there is something that can be done now I don't know but there will be experts out there that do.
Good luck and please let us know if you do find out anyhting that can help others x

[crad2]

Re: Executor advice

Thank you for reply.
As the executor and a beneficiary of the will, can i be held personally responsible for any debt owed by her estate?
Just thinking ahead in case of any overpayment of pension/ benefit that may have taken place as i have heard horror stories about such things.
The property will have to be sold and the shared appreciation mortgage outstanding ballance cleared as this will be a substantial sum.
Just begining this steep learing curve !

[enaid]

Re: Executor advice

Yes you will be responsible to settle all the debts before distribution to the beneficiaries.
Do you know if your aunt was in receipt of any benefits ?
The main problem people have is with Pension Credit and the DWP trying to claim it back.
My reason for mentioning about seeking a bit of advice with the mortgage was simply the lender may try to over value the property etc, the more it is worth or sold for the more in theri pocket.
You will need to get the property valued by an estate agent for probate, try have a word with them they will have come across this situation before.

[crad2]

Re: Executor advice

My Aunt was in receipt of state pension, pension credit and attendance allowance. Her husband died in 2000.
As you say i need to get the property independantly valued for the probate. The lender may try to overvalue as you say.
If debts are owed and there is nothing left in the estate can i then be held responsibe to pay them out of my own savings?? worst case scenario

[enaid]

Re: Executor advice

You need to have an idea if the estate is able to cover everything, like the mortgage loan, funeral expenses etc and any unsecured loans.
State pension will be fine you can only owe from when you informed DWP of the death and if early enough they will owe the estate as this is paid in arrears, same with Attendance allowance.
Pension credit is a wild card and depends totally on what DWP come up with as to the claim and if the claim was a false one.
You will only be responsible if you make a mistake with the estate and the debts, do not rush make sure everything is covered.

[crad2]

Re: Executor advice

Thanks much appreciated.

[crad2]

Re: Executor advice

Considering the implications re the possible overpayment of pension credit which may also affect the council tax benefit she received and the property involved with the shared appreciation mortgage outstanding, i am thinking about letting a solicitor do the lot. I know this will be a lot of money, the house is probably worth about 150-180k . The lenders will want a large sum but there should still be a substantial sum remaing to satisfy the dwp if needed.

[enaid]

Re: Executor advice

Entirely your decision, the house isn't counted as capital while she lived in it, PC may well have been ok and depending on the Assessed Income Period of the award info on that HERE she may well owe nothing.
If you decide to use a Solicitor then maybe this will help you find one
http://lbcompare.co.uk/