life insurance/ funeral fund

[bagee]

Hi all! My mum has a unpaid bank loan. I have been back and forth with them to try to get them to write the debt off. The latest news on this is they now want a copy of her life insurance/ funeral fund. Has anyone heard of this before and if you have can they really take the money that,s supposed to pay for her funeral? I,m at a loss with that one. Any help advice would be appreiciated. Thanks in advance.

 

[Pinkys]

I suspect you need professional advice. perhaps Age UK??

For an outstanding loan, they may have the right to investigate any assets, and may have a claim on them. It may be possible to dispute the loan if there was some evidence your mother was lacking capacity when she took it out, but otherwise, they may have legality on their side.

 

[Bod]

"I suspect you need professional advice."
Absolutely, and the sooner the better.
CAB, Stepchange, National debtline, there are many out there.

Bod

 

[Selinacroft]

I'm no legal expert but I would have thought it was executor's responsibility to pay for funeral expenses first and then any priority debts- tax, loans secured creditors , other creditors etc in the right order (whatever that is).
I suppose they need satisfying that there is no money left in the estate, hence their request to see if there is any life insurance.
I don't think family can be held liable from their own personal funds but any debts should be settled from the estate by the exors before any remaining assets are distributed.

 

[Saffie]

I'm no legal expert but I would have thought it was executor's responsibility to pay for funeral expenses first and then any priority debts- tax, loans secured creditors , other creditors etc in the right order (whatever that is).
I suppose they need satisfying that there is no money left in the estate, hence their request to see if there is any life insurance.
I don't think family can be held liable from their own personal funds but any debts should be settled from the estate by the exors before any remaining assets are distributed.

If someone hasn't died, why would it have anything to do with an executor?

 

[sue38]

If this loan company is hassling you for money, and from what you have said previously your mum's income is being used to pay her care fees, I would tell them to try and sue her and wish them the best of luck .

Your mum's life assurance policies, including those set aside for her funeral costs, will not be available to pay her debts unless and until she dies, and then her funeral costs will take precedence over any other loan.

 

[Selinacroft]

If someone hasn't died, why would it have anything to do with an executor?

A thousand apologies if I jumped the gun here. I assumed as funeral funds and life insurance were being discussed the thread was regarding an estate. Please accept my apologies if this is not the case.

 

[Linbrusco]

Totally different rules here in New Zealand, but I work for a bank, and can only think your Mums bank is wanting evidence somehow that your Mum does have enough life/funeral cover that any possible surplus could repay the loan, before they consider writing the debt off, if its come to the point where financially the repayments can no longer be met?

 

[bagee]

life insurance/funeral fund

Hi all. Many thanks for replies. I was in touch with national debt line and explained what was happening. It turns out I need to write a letter saying that I object etc etc as it,s me that pays for that fund and has mentioned data protection. it can be traced that the money was paid into her account and when she was admitted to hospital then the nursing home i transferred it to my account as there wasn,t any point in keeping it in mums account, plus the fact although it is in mums name but i am the benefiary on the policy. I,ll post when I have written and had a reply. Thanks again to all.