Help needed. Are children responsible for debts of a parent after death?

In most cases when a person with debt dies, it's their estate, not their childrn, that is legally responsible. Any outstanding debts should be paid out of the estate and if there is not enough cash then assets (eg the car) should be sold to cover them if possible.

So providing there is nothing left for the children to inherit, then they are not responsible.

Hopefully they havent co-signed anything.

That’s why I said in ‘most cases’ Best

If the credit card companies are daft enoug to lend money to those who can’t possibly hope to repay it in their lifetime, then that’s their problem IMO.

Thanks for the replies. I've found a bit more out about the position in the UK.

No they haven't singed anything other than guarantor for her rent as it's a private rental and she couldn't get it any other way. Thankfully they set up DD's for rent council tax and utilities before any other payments

When we looked last night all OH got on his phone was USA sites so I wanted to make sure we understood UK situation.

I agree OldMeg if companies are daft enough to lend without being responsible it's their problem but they feel really bad because they know she won't have a hope in hell of paying off the debts.

They don't know how to stop her getting credit. Her DH used to deal with all the money and she never had to think about budgeting or payments and she won't change.

I suggested they talk to Age UK or CAB but as they both work full time and offices for either of these are miles away so I said I'd ask GNers as folks here have a lot of knowledge/experience.

I have messaged them and it's a relief so thanks again.

step change might be the best people to advise.

the only way I think they'll "pay" is in a round-about way: if she left money for her funeral as part of her estate, that would be used to pay her debts not her funeral, so that'ld leave them paying for the funeral.

funeral plans are different though, and if shes running up CC debt shes unlikely to have savings accounts anyway.

Just be very carely re use of addresses etc

Age Concern and the CA have online and telephone advice lines and also Fact sheets on a wide range of problems.

To get debt sites for the UK, just include UK in your search terms. Something like 'Responsibility for debts after death UK' . That should get the right sites.

Exactly what Monica said. AgeUk are brilliant!

I suppose the problem is that the CC companies will be after her before she dies, they would probably take her car if they take proceedings against her, your friends should check to see if they can take money from her pensions as payment for her debts.

Once she dies, they will be ok, but she sounds quite hail and hearty!

Thank you all, I'll be passing on the information on.

Especially about the on-line information and fact sheets.

And I'll get them to check what sort of funeral plan/policy she has, I know she has something in place.

They don't care that they won't have anything, they just don't want to be left with her large debt.

Also they wish they could find a way to stop her getting hold of the credit so that she can't get into more debt. They don't think it's right borrowing money that she/they know can't be paid back.

Thanks agin for the help.

Unless they've co-signed for the card it's the estate which is liable for any debts after a person dies but as with all debts there is a certain pecking order of who gets what first. Funeral arrangements and HMRC come first. If there is nothing left then the creditor gets nothing.

Just wondering if it would be possible for them to redirect her post to stop her getting the credit card applications - unless she'd doing it online? It's hard to imagine how she keeps getting them as each application will affect her credit rating. Worrying time for them.

Yes Willow it is worrying.

My friend was going to join us tomorrow but now has to work :-(

I'm hoping she will be able to join us at one of our meet ups, I keep suggesting she joins GN so may be one day she will get round to it :-)

This lady doesn't have to be getting offers through the post. I do not think that is allowed anymore, but there are plenty of adverts in the papers, on television and online. If she wants a loan it is very easy for her to get one.

Perhaps the best thing to do is leave her to sort out her own problems next time she gets nasty letters. Keep an eye on her, but let her cope with loan companies taking her to court. If that happens she will get a black mark on her credit record and all of a sudden loans will be unavailable

Do these people know what she is saying on these forms. Is she, for example, claiming that she is a houseowner even though she actaually rents, so the lenders think she has assets to meet any debt.

I think if you accept the inheritence then you take on the debts. You can refuse the inheritence but it means you have to be aware of the facts well in advance otherwise you can't make the right decision.

Even though M/MIL is paying her living costs via DD does she have any funds left for everyday living ? Is she using these cards for that purpose for buying food for example,if her OH has always dealt with previously then she may be at a loss as to hope to cope.
Saying that it is far too easy for people to apply for cards on line and be accepted even if they have evidience of multiple cards against their name.

I think if you accept the inheritence then you take on the debts. You can refuse the inheritence but it means you have to be aware of the facts well in advance otherwise you can't make the right decision.

Not really.

It comes out of the estate.

If you inherit 5k and debt is 3k you pay 3k and are left with 2k.
But if yoy inherit 3k and debt is 5k you pay 3k and inhetit zero but arent responsible for the other 2k.

(over simplistic as you dont really "inherit" until after probate which subtracts the debts from potential inheritances anyway)

Absolutely right notanan2. When someone dies and their estate is valued, the first thing that happens is that all the debts are paid. What is left then gets distributed. If someone leaves £10,000 to their children in their will but after debts are paid nothing is left, that is all they get, nothing.

Many an eager legatee has had their hopes dashed because there is no money in the estate to pay their legacy.

Quick update for those of you who replied to this question.

Our friend found out how her MIL was getting credit, yep it was on-line and she was using the income from before the FIL died.

Anyway, they think (fingers crossed) that they have shut down any future cards.

They know there won't be any money for them to inherit and they never had a problem with that but their worry was how would they pay off MIL's growing debt.

They now have arrangements in place with all the credit providers they know of but say MIL will have to live to about 180 to pay it all off. But that's the best they can do.

So a very big thank you to you all for your advice and information, it was much appreciated.

I am glad that is sorted. Thinking you may be responsible for other people's debts is frightening.

I think M0nica and notanan2 have expressed the position perfectly.