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Hello!
I've read some threads here about the issues I'm trying to get to grips with, but I guess every situation is unique.
I lost my sister to cancer in January. She left no will and a great deal of incomplete paperwork indicating that she had several large debts, including CCJs. A couple of the latter creditors have sent letters received after her death, indicating that they are aware that she was ill, which suggests she was communicating with them.
So far they, or any of the others that I've found, haven't yet been informed that she's died. Having read around the issues involved of trying to administer an insolvent estate, I am at a loss about what to do for the best.
Her only assets were two pension schemes, neither of which had started paying out because she was too young. Both will pay out a death benefit lump sum, but the total monies are far less than what is owed. It's clear that her estate is insolvent by quite some margin.
Her next of kin is her only daughter, a named beneficiary for one of the pension benefits. I have tried to find out whether this sum falls outside of my sister's estate and so far have been given conflicting opinions. The other pension scheme requires probate to release the monies, so I assume this means it would definitely be paid to the estate.
If it is the case that all of the pension benefit belongs to the estate, then it seems to be pointless applying for probate/ letters of administration as my niece cannot receive any part of it. Also the fact that the risk of a mistake in the process could result in some of the debts becoming my nieces responsibility, especially as I have no way of knowing if I have found all of them!
I know that it is not a legal requirement upon the next of kin to administer an estate if it is insolvent. I suppose what I am asking for help with is - how to go about informing all the creditors of her death, in a manner that makes it clear that the estate has no-one taking responsibility for it. I understand that if the creditors wish to access her pension, they will have to apply for probate themselves?
My main aim is to prevent any further distress to my niece, who was completely ignorant of her mother's financial plight. I'm hoping to help her by minimising the amount of work that needs to be done to resolve the situation, as painlessly as possible. The funeral was paid using what cash there was in my sister's bank accounts and I believe this is legally acceptable under the circumstances, as none of the debts were secured.
This is as brief a description as I can manage and hopefully make sense; thank you to anyone who has read this far! If there is anyone who can offer advice to help me handle this mess, I would be very grateful indeed.
Thank you once again :-) I wish everyone a happy (if cold!) weekend,
My best,
Riddle
I've read some threads here about the issues I'm trying to get to grips with, but I guess every situation is unique.
I lost my sister to cancer in January. She left no will and a great deal of incomplete paperwork indicating that she had several large debts, including CCJs. A couple of the latter creditors have sent letters received after her death, indicating that they are aware that she was ill, which suggests she was communicating with them.
So far they, or any of the others that I've found, haven't yet been informed that she's died. Having read around the issues involved of trying to administer an insolvent estate, I am at a loss about what to do for the best.
Her only assets were two pension schemes, neither of which had started paying out because she was too young. Both will pay out a death benefit lump sum, but the total monies are far less than what is owed. It's clear that her estate is insolvent by quite some margin.
Her next of kin is her only daughter, a named beneficiary for one of the pension benefits. I have tried to find out whether this sum falls outside of my sister's estate and so far have been given conflicting opinions. The other pension scheme requires probate to release the monies, so I assume this means it would definitely be paid to the estate.
If it is the case that all of the pension benefit belongs to the estate, then it seems to be pointless applying for probate/ letters of administration as my niece cannot receive any part of it. Also the fact that the risk of a mistake in the process could result in some of the debts becoming my nieces responsibility, especially as I have no way of knowing if I have found all of them!
I know that it is not a legal requirement upon the next of kin to administer an estate if it is insolvent. I suppose what I am asking for help with is - how to go about informing all the creditors of her death, in a manner that makes it clear that the estate has no-one taking responsibility for it. I understand that if the creditors wish to access her pension, they will have to apply for probate themselves?
My main aim is to prevent any further distress to my niece, who was completely ignorant of her mother's financial plight. I'm hoping to help her by minimising the amount of work that needs to be done to resolve the situation, as painlessly as possible. The funeral was paid using what cash there was in my sister's bank accounts and I believe this is legally acceptable under the circumstances, as none of the debts were secured.
This is as brief a description as I can manage and hopefully make sense; thank you to anyone who has read this far! If there is anyone who can offer advice to help me handle this mess, I would be very grateful indeed.
Thank you once again :-) I wish everyone a happy (if cold!) weekend,
My best,
Riddle
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