Credit Card Debt-When someone Dies

[IcanIwill]

Hello again long time to post as my mission to become debt free is going great!

I am currently helping my uncle with my auties credit cards she had when she was alive, She has passed aay in the last month, One of these are with MBNA who my uncle phoned and they just said they will send informaton to us over the next 6 weeks, My uncle also went into the bank to close her debit cards but she also had a credit card with her bank,

My uncles background is, they owned their house together, now he owns the house, He is not working he is on long term sick and gets paid statuary sick pay.


So what can these credit cards do?

Can they make him sell his house to recoup the debt ?

Will they try and make an arrangment to pay what he can afford?

Is the debt legally his now even knowing the cards are soley in her name


Hope that was not to confusing but thank you in advance

I can I will
xx

[leclerc]

Re: Credit Card Debt-When someone Dies

If the debts are in sole name only then they will have to be written off unless she had the funds from her estate to pay them.

They cannot make you sell the house and the debt dies on death usually provided that he was not a secondary cardholder.

[IcanIwill]

Re: Credit Card Debt-When someone Dies

Would really like to know what the law actually states but cannot find nothing on this. Will get my uncle to ring them tomorrow to see what they are planning on doing with the account!

[leclerc]

Re: Credit Card Debt-When someone Dies

There is no law specifically but if the cards are in sole names then only from his estate can any funds be paid. The house cannot be sold if it is the residential home of the other party(end of).

[labman]

Re: Credit Card Debt-When someone Dies

IcanIwill, Leclerc is absolutely correct!

http://www.direct.gov.uk/en/moneytax...rs/dg_10013093

[Guest]

Re: Credit Card Debt-When someone Dies

.

They cannot make you sell the house and the debt dies on death usually provided that he was not a secondary cardholder.

IIRC debts are due from the deceased estate provided the estate is in funds. Section 32 of the Administration of Estates Act 1925.

As executor I have a legal obligation to settle debts from the estate provided they are not barred debts, and be paid before distributing the assets according to the deceased will.

[labman]

Re: Credit Card Debt-When someone Dies

IIRC debts are due from the deceased estate provided the estate is in funds. Section 32 of the Administration of Estates Act 1925.

As executor I have a legal obligation to settle debts from the estate provided they are not barred debts, and be paid before distributing the assets according to the deceased will.

As per post 2!

[Guest]

Re: Credit Card Debt-When someone Dies

If the debts are in sole name only then they will have to be written off unless she had the funds from her estate to pay them.

They cannot make you sell the house and the debt dies on death usually provided that he was not a secondary cardholder.

Yes this is correct. If the other person was a secondary card holder they would still not be liable.

Only if both names were on the agreement (a joint application).

D

[Crowie]

Re: Credit Card Debt-When someone Dies

Hi there,

I used to work in a Bank, and please be assured that everyone on here is right, and the credit card company cannot force your uncle to sell his house because a credit card is classed as unsecured borrowing.

You havent mentioned any details of your auntie's estate i.e. anything else of hers such as savings or investments etc. which she owned solely in her own name. Credit cards or other liabilities would be repaid from encashment of assets. Anything in joint accounts etc. with your uncle do NOT count, as they passed to him by survivorship when she passed away. If the credit card was solely held by your Aunie then he's not liable for any of the monies owing.

One thing did occur to me though, you never mentioned how old she was. I was wondering if maybe she'd been sold some of the much-maligned PPI insurance? If she had such a policy, then get a claim in and let the insurer pay up.

If your uncle could afford to do it, I've seen situations in the past where people have wanted to pay off debts owed by deceased loved ones in order to "clear their name", but I always advised them to keep their money.

Anyway, I wish you and your uncle well with all this. Not nice at all. Good luck

[IcanIwill]

Re: Credit Card Debt-When someone Dies

thank you to everyone for your views and thoughts, very confusing information on the met with most sites saying assests wilk have to be sold etc etc, but the above posts have made every thing a lot clearer and when i tell my uncle i think it will take a weight off his mind. Cowie do you think i should approach the credit card company or is a letter template i could send off?

thanks once again
IcanIwill

[IcanIwill]

Re: Credit Card Debt-When someone Dies

Sorry forgot to add

>No PPI
> Age was 56
>No savings and no investments

IcanIwill

[Crowie]

Re: Credit Card Debt-When someone Dies

Hi there.,

I'd suggest that all you need to really do is to forward a copy of Auntie's death certificate to the credit card company (pop into your bank and ask them the provide some 'certified copies' of the death cert rather than sending in the original). Bank shouldn't charge anything for doing stuff like that (well I never did!). All they are is a photocopy with an official stamp certifying that it's a true copy of the original document.

Send this to the credit card company, and if you can, send a statement of assets and liabilities relating to Auntie's estate. Remember, nothing joint should be included as that belonged entirely to your uncle as soon as auntie passed away. If you're not an executor to her will, then get the executor to do this for you. If there are assets e.g. savings and investments etc. then the executor will have to use these to 'settle' your auntie's estate and repay any borrowings before your uncle gets anything. If she had nothing, or everything was joint the credit card company will simply have to write the outstanding monies off.

All you need to write is something like this:-

Dear sir/madam

Re: Account number
in name of................................. deceased.

With regards to my late Aunt detailed above, please find enclosed a copy death certificate showing that she passed away on........ (date).

I understand that at the date of her death, my late Aunt had an outstanding credit card balance on the above-mentioned Account. As executor of her estate, I regret to advise that my late Aunt had no assets of her own, and I enclose a statement of her assets and liabilities to this effect for your records (if this is the case of course).

As evidenced by the enclosed document, my late Aunt had no specific assets of her own which I could realise in order to settle her liabilities. As a result, I regret to advise you that as executor, I am not in a position to be able to repay the monies which are owed to you. (amend this if you are able to pay something).

I trust this is in order.

Yours Sincerely


That ought to do the trick, however please ensure that the document is signed by all executors of her will if there's more than one. You might also want to enclose copies of bank statements etc as evidence of your figures etc.

Hope thats OK for now, and good luck with it.

[Guest]

Re: Credit Card Debt-When someone Dies

Excellent post Crowie

[Crowie]

Re: Credit Card Debt-When someone Dies

Oh, and one other thing.. If Auntie had any personal possession (often referred to as 'chattels'), eg jewellery, other valuables etc. these became the property of your uncle as well, so he would not be required to sell any of these to settle the debt either. If there's some clueless insensitive oik on the other end of the phone, it's possible that they might bring this subject up. If so the executors can tell them that's not going to happen.....

Must admit, this sort of stuff makes my blood boil. The last thing your poor uncle needs right now is to have money worries on top of everything else he's having to cope with.

Good luck

[Crowie]

Re: Credit Card Debt-When someone Dies

Thanks.,

I'm new to all this I'm afraid....

Still, if I can help in any way at all I'm happy to.