Loans after mums death

[theviking51]

Hi, my mother passed away easter sunday aged 80 and left my dad who is 86 differant loans outstanding. ie; credit cards which are in her name only. I heard maybe on tele that loans die with you and family dont get chased for depts? Can anyone let me know. plus i need to find out if my dad can get bereavment benefit because of not much money. thanks Eric

[bigmamma]

I'm sorry to hear of your sad loss theviking . What a worry for your family now on top of your grief . I can't offer any advise other than I would hope that some credit agencies have the system whereby they cancel the debt . I hope all goes that way for your dear father , x

[baileybird]

A quick trip to CAB will answer all of this for you. Sorry to hear that xxxxxxxxxxxxxxxxxxxxxxxx

[barry1010]

Loans must be paid out of your mother's estate - what she has left behind, such as bank accounts, savings, the sale of her personal possessions and so on.
If she owned her own house, whether on her own or jointly with your father, that also counts as her estate.
If she truly had nothing of any value then the family cannot be chased for the money.
Normally when a person dies, the funeral expenses and debts come out of the estate before the remainder is distributed in accordance with her will or intestacy rules if she left no will.

[theviking51]

Thankyou all for your advise. Lifes a bitch.

[themas]

If there was a house owned jointly with her husband as joint tenants (as opposed to tenants in common) then her interest in the house goes automatically to her husband, and is not normally part of her estate so far as payment of any debts is concerned. However, if the debts are not paid (because there is not enough money in her estate) it is possible for the creditors to make the estate bankrupt. The value of her part of the house would then be taken into account & it might have to be sold to pay the debts and bankruptcy fees. However, it is most unusual for creditors to act in this way.

Contact CAB or the Pension Service for advice about bereavement benefit or any other benefit issues.

[theviking51]

Thanks. will visit cab andmaybe age concern.

[middkazsam]

Hi, dont worry. If the loans were unsecured and your dad owns the house then all will be fine. Its only if the loans and cards were secured against the house that there could be problems. Get some advice from the citizens advice bureau, they are free and know what they are talking about.