Widow's liability of husband's debts.

[GlenB]

If a deceased person has an outstanding credit card debt and/or other debts in his sole name but all assets were held jointly with his wife, is the surviving widow liable for the repayment of the debts?

[welshlibranr]

Not completely sure here, but I think that if he left an estate, then you have to use it to pay off the debts...........but I would get some legal advice, to clarify the situation...................

[dzug]

I'd say yes - but only up to 50% of the value of the joint assets.

But ICBW.

[factor-fiction]

The estate is wholly liable for 100% provided there's enough in.

[dzug]

The estate IS (or includes) 50% of the joint assets - perhaps I didn't express that very clearly.

[GlenB]

Thanks for your comments. The point is that there are no assets in the estate - only liabilities, and the joint accounts with bank/building society pass automatically to the surviving account holder without being part of the estate.

[factor-fiction]

When an estate truly has no assets then the creditor gets nothing.

However (and I'm no lawyer so could easily be wrong) I'm not sure that money that was in a joint account automatically goes to the other name on the account without any of it being counted as part of the estate. We need barmaid or our other legal experts.

[themas]

I rather think the creditors would want to look at where the money in the accounts came from. If the accounts are "joint tenancy" then they would not form part of the estate as such, but I believe they are still treated as part of it for calculation of Inheritance Tax liability.

And don't forget that creditors can bankrupt the estate & if they did they would certainly be able to get at whatever % of the accounts was rightly attributed to the deceased.

You need to consult the solicitor who will be helping on the probate.

[GlenB]

Thanks, Factor30 and themas.
I can confirm that money in a joint building society account is held as joint tenants and is transferred to the survivor immediately on the first death. It does not form part of the deceased's estate but as themas said half is counted for inheritance tax purposes if that applies. As it happens it doesn't in this case.

[GlenB]

The outcome was that the Credit Card Company after trying to obtain part payment from the widow, in full settlement of the debt, eventually admitted that they had no legal claim against her and the full debt was written off.