Money owed to deceased person

[dzug]

Let's say I owe a deceased person some money.

Obviously I am obliged to pay this over to his executors.

But as a private individual when am I obliged to do this and how much evidence can I insist on to prove they are the executors? Can I insist on seeing a copy of probate before I pay - and if I do could I be liable for interest payments?

Grateful for any thoughts.

[society]

Not an answer but a comment - you are always answering questions and giving out very helpful answers, this is the first time I've noticed you asked a question.

Interesting question tho, My guess is, you should ask to see as much evidence as you can to prove that 'they' are deserving of the payment. These days, trust no one especially where money is concerned.

[dzug]

I do - very occasionally - ask questions. Usually on something obscure.

Thanks for your comments. My thoughts would be to insist on seeing probate, but want to be sure it would not backfire on me.

[LoftyLottie]

My thoughts, but I am open to correction. If it is picked up, for probate purposes then you will be contacted by the solictors who are dealing with the probate. An executor, however, does not have to employer a solicitor, but still has to carry out the probate and do all the necessary paperwork, and the results have to be published for public perusal. Therefore, you will be fully entitled to see any paperwork to prove you are paying over the money to the right person.

[society]

Why do you think it would backfire on you? Are you the sole responsible party for this inherited debt?

The executors are obliged to show you probate, I believe by law they are compelled to do so. That alone in itself is solid evidence. You are the one who will be 'paying out' and you need to see concrete evidence.

[dzug]

The only reason that I fear it might backfire is if they say - you've had this money for 6 months (maybe longer) while we've sorted out probate, how about some interest?

[LoftyLottie]

I think that on death all financial transactions have to stop, bank accounts are closed, etc., so no interest on them after death even if probate takes an eternity - and it can!! I don't think you can be charged interest past the date of the death, and would think it unlikely anyway if you weren't charged interest by the deceased in the first place.

[paddywak]

sorry if it seems like I'm hi-jacking your thread but on the same lines, if a person dies owing for example £1000 on a credit card just who, if anybody is liable for debt?

[LoftyLottie]

Debts can't be inherited paddywak, except by people who share accounts, etc. e.g. husband and wife who have a joint account.

A lot of people will try and get debts out of next of kin, etc.

[LoftyLottie]

Debts on a jointly owned property, e.g. mortgage payments, council tax can also be inherited by the surviving partner.

[dzug]

The estate of the deceased is liable - ie any other assets he has must be used to pay off debts. There is an order of priority.

If he doesn't have any assets then the debt lapses

[paddywak]

Thanks lotttie, it was just thought that came to mind while reading the answers to dzug's question

[LoftyLottie]

You are right dzug. I forgot about that. Was just simply thinking of someone who died without assets. Sorry.

[LoftyLottie]

And sorry Paddwak. It's just that I do know of someone who died in complete debt and who's next of kin, son, got chased up by many people for him to pay off her debts.
There is no way the son could be liable unless they held joint property or joint accounts.

[society]

Thread carefully Dzug and don't ever give a smidgen of information about paying interest. Always steer every conversation or communication to closing this debt and finishing with it. Best of luck.

Hopefully Barmaid will see this thread soon.

[LoftyLottie]

e.g. If a husband died owing £1000 on a credit card and the credit card was in joint names with wife, then the wife would be liable. If just in his name then she would not be. Any surplus funds in the husband's name only could be used to settle the debt.

[Barmaid]

My view is that you should see the Grant of Probate or Grant of Letters of Administration. The former will confirm the authority of the executors, the latter will confer authority on the executors. Otherwise, how can you tell you are paying the right person?

As to interest, it would depend on the type of debt it is - there may be a contractual right to interest or a statutory right on the other hand, there may be no right at all. Particularly if there is a GoLoA I do not see how they can claim interest since there is no one to whom the debt can be paid until this document is obtained.

Unless it was a HUGE sum of money and worth arguing over, and unless the entitlement to interest is very clear cut, i would be inclined to not pay any interest. They are going to have to either get the agreement of all the beneficiaries (assuming they are identifiable and of full age) or a Beddoes Order to enable them to bring proceedings without a personal risk of costs. Most executors would be very reluctant to do this on the basis that their best witness is dead. However, this is all rather general and on a more fact specific example, I might change my mind.

[paddywak]

This has been a really interesting thread as it deals with something most people don't even think about until it's too late,thank you one and all for your imput

[dzug]

<If a husband died owing £1000 on a credit card and the credit card was in joint names with wife, then the wife would be liable>

Well yes - but credit cards are rarely if ever in joint names. They are in one person's name with the other as an authorised user who has no responsibility for paying the bill at all.

Thanks for your answer Barmaid - you've given me confidence in what I was almost certain was the answer.

The 'debt' would be a week or two's state pension that I had collected on his behalf and not got around to handing over. So no great amount.