I ask this question on behalf of my 89 year old mum, whose health is failing. She owes around £5,000 in total to a credit card, Vanquis, and also a loan she took out with Lloyds. What happens to these accounts when she dies? She has life insurance to bury her, but what should we do?
I just want to say thanks for all you do, and if you can help with some advice here.
Mrs. Gemma Smith
I understand your concerns, and have dealt with the same issues for people, and even for my own family.
A few things need to be addressed:
- If your mum has PPI or payment insurance on the accounts, if she were to pass, this may pay off the accounts.
- If your mum has life insurance, that money goes outside of any probate, or court’s order, so if she has enough life insurance, after her burial expenses, you could pay off the accounts.
- However, you do not have enough funds to pay off the accounts, they are your mum’s debt. If she has no estate, or property, or assets, you can notify who she owes, and they will deal with it. Which usually means writing the debt off. No one is responsible for the account but your mum.
When someone dies, family get tied down with some “loose ends” the deceased may have left.
Forget those loose ends. Deal with the here and now, your loss, and mourning. Creditors, banks, lenders, whatever…..can wait.
I hope your mum lives to get a letter from the Queen, you know what I mean. And should the time come, just email me, and I will help you sort out the financial end of her affairs.