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Loan repayments after death

Last post Tue, Dec 20 2011, 4:54 PM by eastleighjim. 2 replies.
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  •  Tue, Dec 20 2011, 4:54 PM

    Re: Loan repayments after death

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    Did your uncle and your aunt own a property? If so the bank may be able to go after that to pay the debt. Your aunt is not liable (unless it was a joint loan or she gauranteed the loan) but if they owned a property together it may be worth her paying off his debt rather than lose the property at some point in the future
    • Post Points: 5

  •  Mon, Dec 19 2011, 8:32 PM

    Re: Loan repayments after death

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    If the loan was solely in your Uncles name then it is for his estate to settle, not your Aunt's responsibility. If he was in debt and his estate was left with no other assets....then the bank simply has to write off the money.

    Inform the bank of the situation, they can make this request, or try it on.... but legally they cannot hold your Aunt or any other individual liable for a personal debt taken out by your deceased Uncle.
    • Post Points: 5

  •  Mon, Dec 19 2011, 8:02 PM

    Loan repayments after death

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    My uncle recently died and it's since emerged that he had a loan of £4,000. He didn't have a savings account or anything to pay it off, and was basically in debt. The bank is now telling my aunt that she has to pay off the loan, even though it was in his name. Is this correct? I thought I read somewhere that it's not her responsibility, as there wouldn't be any money from the estate to pay it off.

    Can someone help/advise?
    • Post Points: 35