Debt Collection Agencies and the Deceased?

[bluebottle]

Re: Debt Collection Agencies and the Deceased?

I can only offer personal experience here, when my brother died I sent a letter to all un-secured debtors with a copy of the death certificate and a covering letter stating that there were few liquid assets and that we as a family would have to put together to cover funeral costs, they all replied stating that the debt had been written off.
Admittedly they probably had no choice , but the letter was much less confrontational than the one above.

Unfortunately, we don't know how "confrontational" Mucky Hall et all are being, GT.

[gravytrain]

Re: Debt Collection Agencies and the Deceased?

Whenever possible i like to give people the opportunity to do the right thing.

Then drop on them like a ton of bricks if they don't

[CleverClogs]

Re: Debt Collection Agencies and the Deceased?

This was taken directly from the Co-operative Legal Services Website:

http://www.co-operative.coop/legalse...ponsibilities/

"Disappointed beneficiaries have up to 6 months to make a claim after issuing the Grant of Probate while creditors’ owed money by the deceased can potentially make a claim against the personal representative for up to 12 years after the death."

Cobblers'.

Look at sections 21 (link) and 22 (link) of the Limitation Act 1980.

[labman]

Re: Debt Collection Agencies and the Deceased?

Either way, specifying a time limit of 21 days is inappropriate in the circumstances, given what the legislation says. I'm afraid it's too late at night for me to get my little brain around whether that is saying 6 or 12 years.

[gravytrain]

Re: Debt Collection Agencies and the Deceased?

Perhaps the six months quoted is the period required for the executor to initially service the estate.

I know claims on an estate can be made well after this period

PP

[bluebottle]

Re: Debt Collection Agencies and the Deceased?

I think it is acknowledged just how devious and deceitful Mucky Hall, Snotcall, etc., can be. The OP, as an executor, needs to cover their own back whilst, at the same time, preventing any fraudulent or questionable claims being made on the estate.

Yes, claims can be made on an estate some years down the line, provided whosoever makes those claims can prove they have legitimate claim on the estate.

Given the known behaviour of Mucky Hall, Snotcall, etc., I am of the opinion that giving them a 14-day time-limit is not unreasonable. If they genuinely need more time, it is open to them to ask the OP for this and for the OP to grant it. Give Mucky Hall, etc., an inch and, as most people well know, they will take a mile.

[labman]

Re: Debt Collection Agencies and the Deceased?

Firstly, and most importantly. Dandroid - are you happy your issues have been answered?

Purely for my knowledge bank (not that I'll remember it), what happens if the money is paid out, spent and in 18 months time a creditor makes a legitimate claim against it? There must be something enshrined in law, or nobody would ever get money from wills until 12 years after the person's death which clearly is not the case.

[Inca]

Re: Debt Collection Agencies and the Deceased?

As a recent Executor to a Will I can only tell you what I was advised. Put a Probate Notice in the local newspaper and follow the probate/letters of administration guidelines that you will be given when you apply for probate.

[bluebottle]

Re: Debt Collection Agencies and the Deceased?

Both Enquirer and Inca's suggestion of press notices is sound and would enable the OP to deal with claims, prioritising them as necessary. HMRC/DWP, the funeral director and any monies due to the local authority (Council Tax) would be the first priorities. Any other creditors will have to take their place in the queue, including Mucky Hall, Snotcall and Aktiv Krapital.

[wales01man]

Re: Debt Collection Agencies and the Deceased?

is there any insurance that can be taken out before funds are distributed or a sum held back incase some arises in the period after be it years or months

[Inca]

Re: Debt Collection Agencies and the Deceased?

We had a £15 demand from TalkTalk who wouldn't take a payment except from the account holder,,the woman wasn't best chuffed when I told her she would need the services of a good medium and a oujia board! And I had to send off a copy of the Death Certificate to cancel his Facebook account! You will meet the strangest of obstacles .

[dandroid]

Re: Debt Collection Agencies and the Deceased?

Wow, thanks for the response guys. As yet I have not taken any action so am still open ears to everything. LOL as much as I love CleverClogs answer and would love to act in such a manner I am concerned about being stung in the future. As per Gravytrain’s post we have to front the cost of the funeral and to make things even more difficult there is an equity release mortgage on my MILs property which I believe that we only have 12 months to settle before they take the property which will probably require some work done to it to sell quickly in the current climate. Obviously a solicitor will add to the cost so I am a little nervous about getting our money back.

Alarm bells are now ringing, we have to go through probate so if we do manage to settle all the debts and have something left which can be spread out to the beneficiaries in the will can I then be liable to pay the money back if another claim comes forward? Would this be the executor’s responsibility to get it back from the beneficiaries? I have read sections 21 (link) and 22 (link) of the Limitation Act 1980 as per Cleverclogs post but really don’t understand what it means.

Also as per Bluebottles quote that certain claims would be paid out first like the funeral director, does this mean that all of my own costs sorting the estate out will be paid out before anything else, ie. funeral and solicitors costs etc?

[MissFM]

Re: Debt Collection Agencies and the Deceased?

Wow, thanks for the response guys. As yet I have not taken any action so am still open ears to everything. LOL as much as I love CleverClogs answer and would love to act in such a manner I am concerned about being stung in the future. As per Gravytrain’s post we have to front the cost of the funeral and to make things even more difficult there is an equity release mortgage on my MILs property which I believe that we only have 12 months to settle before they take the property which will probably require some work done to it to sell quickly in the current climate. Obviously a solicitor will add to the cost so I am a little nervous about getting our money back.

Alarm bells are now ringing, we have to go through probate so if we do manage to settle all the debts and have something left which can be spread out to the beneficiaries in the will can I then be liable to pay the money back if another claim comes forward? Would this be the executor’s responsibility to get it back from the beneficiaries? I have read sections 21 (link) and 22 (link) of the Limitation Act 1980 as per Cleverclogs post but really don’t understand what it means.

Also as per Bluebottles quote that certain claims would be paid out first like the funeral director, does this mean that all of my own costs sorting the estate out will be paid out before anything else, ie. funeral and solicitors costs etc?

From recent experience, Bluebottle is (as usual) absolutely correct. Don't worry about Probate - it's really nit-picking and annoying but not difficult (if I can do it anyone can....). and if you follow the advice above you shouldn't have any problems

[enquirer]

Re: Debt Collection Agencies and the Deceased?

Also as per Bluebottles quote that certain claims would be paid out first like the funeral director, does this mean that all of my own costs sorting the estate out will be paid out before anything else, ie. funeral and solicitors costs etc?

If the estate has any CASH at all, then that is what goes toward funeral costs. It can be paid out before probate etcetera is completed. Just make sure you get a receipt. Any shortfall is then claimed from the estate when it is finally distributed.

As regards possibly having to pay out in the future, you can only do what is reasonable.

As previously suggested, go with accepted practice - place adverts in local papers and the London Gazette (this is considered to be the 'government' newspaper. Anyone who is anyone is assumed to check it). That, and carefully combing through MIL's papers, should be sufficient to cover your back.