Dealing with a Deceasedís Finances
After the death of a person he/ she would hopefully have already written in a will. In such a case, if the will is already written it is addressed to an executor and in cases where there is no will written it is taken care of by an administrator. One can enlist the help of a solicitor or an accountant of the deceased person. You need to take advantage of their help for the letters of administration. There is a time period of one year given to sort out the estates after which one can pay the taxes of a deceased person. After this, one needs to apply for probate with or without the help of a solicitor if the financial affairs and assets of the deceased person are not finalized. The status of probate provides a legal document which allows the close relatives of the deceased person to sort out all the affairs.
Deceased's Financial Documents
The financial documents of the deceased person are essential in dealing with their affairs. These include state pensions, private pensions, stocks and shares, utility bills, property deeds, unpaid bills, rent payments, state benefits, tax and natural insurance affairs, mortgage payments, car insurance policies, life insurance policies, home insurance policies, health insurance policies, savings account and certificates of bank and building societies, loan payments, store card payments, credit card payments, and other formal debts.
If the deceased person was a business owner, then one needs to produce all the documents related to his business to a solicitor so that these assets can also be disposed of legally and hopefully, fairly. With all these conditions in place, there are just a few more expenses which must be considered when it comes to dealing with the deceased's finances. They are: solicitor's fees, other debts owned by the deceased, unpaid bills, rents of the deceased's home and then the other fees to protect the estate and properties of the deceased person.
Legal Help With Deceased's Finances
All these issues can be taken care of either by an executor or the administrator with the legal documents which include the probate or the letters of administration. If the deceased person had various debts then it can be covered in with the following money: mortgages money can be given with the money that comes from insurance. These may have to be used to cover the deceased' person's bills, even if they were otherwise disposed of according to the terms of the last will and testament.
Even after paying in all the money and counting it as part of the deceased's estate, if there is some shortage for the mortgage payment then there arises a need to sell one of the properties which the deceased person owned. All the rents and utility bills should be paid with this money or by other people living in that house. All taxes need to be paid, together with any arrears which may have built up. Fuel bills should be paid. Then last comes the credit cards and the personal loans which can be paid off from the sales of the deceased's estates. However, when considering selling off property and/or assets of the deceased person in order to pay off their debts, one must check whether or not these assets were owned jointly (in which case they may not be able to sold and certainly the joint owner would need to be compensated, or not.
The executor of a person's will can claim money from the following sources:
- deceased person's business assets,
- pensions and savings,
- mortgage money,
- tax rebates,
- money from personal loans and credit cards,
- life insurance and pension schemes.
But if the money of a deceased person is less than the expenditures, then it needs to be spent in the following order so that it covers the important aspects at least: the money needs to be given to the solicitor for his fees and then to pay the funeral expenses if the family or friends do not wish to cover this. Then any rents or mortgages needs to be cleared and the next to be paid are the pension fees and the last should be the wages for the people who were working under the deceased person.
The death of a person can be a deeply emotional time, and sometimes the dealing with the deceased person's finances is the very last thing that you want to do, but it must be done. There are legal obligations to dispose of jointly held assets and to pay certain fees and taxes. You have a certain window of time in which to do this. Then, it seems like almost the last reason to deal with a deceased person's finances, but you probably want to dispose of their assets as they would have chosen to do. That is still very important. Becoming an executor of a will can be a big responsibility, especially if the situation is complicated, but you will always be able to hire a solicitor to help you.
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