Under Wills in Chelmsford and throughout Essex and the rest of the UK, unfortunately debts and/or bills that people have at the time when they die (including any outstanding credit card balance, mortgage, water, Council Tax, energy and telephone bills) still have to be paid off as part of the process of probate.
Where the deceased was married and a spouse is left behind then will automatically have to bear responsibility for any outstanding payments on debts that they were considered to be jointly responsible for. Moreover, it is also to be noted that even if the deceased was co-habiting at the time of their death, then the surviving partner could be deemed responsible for any bills linked to their home including those for utilities and the mortgage.
However, in the event that the deceased was not living with someone in a relationship at the time of their death then there is a need for their executor(s) to look to guarantee the process of probate in Chelmsford or other locations in consideration adheres to a strict process. This effectively means that all bills and taxes that were unpaid need to be paid prior to the remainder of the deceased’s estate being distributed to their named beneficiaries under the terms of their Will.
With this in mind, as an executor where someone has died it is first necessary to identify and notify any and all outstanding creditors so they are aware the resolution of any balance owed could be delayed for what is clearly a valid reason (i.e. the bill payer/person who owed the debt has died) unless there is some other named person linked to the debt under the process of probate in Chelmsford.
It then falls upon the deceased’s executors to have all the assets valued of which property, shares and savings are to be included with the total figure then serving to show as to whether inheritance tax needs to be paid if that figure is greater than the current nil rate band of £325,000 which is then to be charged at 40%.
Then, once the necessary payment of inheritance tax has been made, it will be necessary for the executors to make an application for a grant of probate in Chelmsford (or any other relevant locations) that could take between six and twelve weeks to be approved. If approval is granted then the all of the deceased’s assets can be accessed with a view to paying any and all bills and/or debts that are outstanding at this time. However, at this time there is also a need to consider if the deceased had any life assurance or Payment Protection Insurance with a view to then covering their debts as part of the process of probate in Chelmsford or wherever else the deceased was located at the time of their passing.
Either way, where there is sufficient value in the deceased’s estate for the purpose of covering all of those debts that are still outstanding, the deceased’s debts could be paid in any order under the process of probate in Chelmsford or anywhere else in the UK; although it is usually a good idea to pay off those debts that are still generating interest first.
However, where there is insufficient value in the deceased’s estate then there are clear guidelines regarding the order that the debts must be settled in as part of the process of probate in Chelmsford and other throughout the UK:
Secured loans (i.e. mortgages)
Funeral expenses
Executor’s expenses
Unsecured creditors (credit cards, utility bills)
Interest on secured loans
Informal loans
If this order is ignored then the executor(s) of individuals’ estates could be held personally liable for any outstanding sums owed by the deceased in locations including Chelmsford and throughout the rest of the UK. Therefore, you need to contact service providers like Andrew Douglas Wills and Legal Services for assistance under the terms of your Wills with regard to probate in Chelmsford and other locations in Essex.
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