Deceased Partners Debt

[cris r]

Can anyone answer this question ,my sisters partner (father of her child ) Died suddenly last Christmas owing the bank money on a loan he had. My sister did not have any share in his estate what he had went to his daughter. who is responsable for this debt?

[Loosehead]

His estate is liable. The bank can, at the time, make representations to the executor of the will. Looks like the depbt dies with him in this case.

[StarskyH]

If the couple were not married then the debt is personal and will have to be met from the estate. The executor of the Will will be responsible for ensuring that all debts are met and all assets and debts should have been dealt with.

[cris r]

He did not leave a will although my sister was made exectour of his affairs. The house was left to his daughter although my sister has carried on with the payments on the morgage.

[tigersam258]

Has your sister informed the mortgage company that he has passed away as the money that she has paid would be recorded as paid by him and so she would receive nothing from the sale of the house if required to by the estate to settle debts.

I would recommend that she speak to a solicitor on this.

[themas]

Your sister's responsibility in winding up his estate included finding out about any debts. These then have to be paid off out of the assets of the estate (the only higher priority is to pay the funeral expenses) before any money or other assets are distributed to the beneficiaries. From what you say, it looks as if this may not have been done properly - assuming the house has been transferred to the daughter.

If there is any equity in the house then the bank loan should be paid off from it. This could mean re-mortgaging to raise the money or even - if that is not possible - selling the house. The bank might be willing to agree other options (such as payment over a period of time) but that would be a matter for negotiation.

[cris r]

Thanks for all this information I will pass it on. My sister did inform the morgage lender, it was a long process to get the morgage in her name. Any money that was left after the funeral went towards paying the morgage off She did also inform the bank but they have only now started to ask for
the money to be repaid. The thing is she does not have it. She only just manages to pay her morgage. Thanks agian for advice