Bank Accounts while Terminally Ill

Debt after the Death of a Partner, Friend or Member of your Family

When somebody dies, their debts are paid out of their estate (money and property left behind). However, in these days where many people in the UK carry huge burdens of debt it may be that selling the estate doesn’t cover all the debt. Alternatively you may now face debt that you cannot service as a single person.

If you need a cash loan of up to £750 then go to PaydayUK

You are only responsible for a debt if the loan or credit agreement was in joint names. If in single names you are not responsible for your partner's debt, however the estate can be used to settle debts.

Dealing with debt can be very stressful, especially at a time when you are dealing with emotional stress. So how do you cope?

• Don't panic. If you have debts then call or write to your debtors and explain the situation. In the case of bereavement they are usually very helpful.

• Do expect to have to prove the bereavement. You may be asked to produce a Death Certificate in the case of a joint agreement.

• If you have life insurance then find the documents and set the wheels in motion. Check to see if the person who has died had any extra mortgage protection or entitlement to a pay out from work (known as death in service).

• Prioritise your debts. Pay off those with the highest interest first and those that are essential such as mortgage, gas and electricity.

• Have a thorough and honest examination of all household expenditure - identify where you can save money, for example some utility providers provide discounts if you take all supplies from them. Look at sites such as for the cheapest provider. Suggested areas for potential savings include food, drink, telephone, gas, electricity, vehicles/transport and leisure.

• Have a budget each week, make it realistic and stick to it. You may find that our budget planner is helpful.

• Consider taking only a small amount out of the bank at the beginning of the week and using only that. This allows you to keep a grasp of what you are spending and know exactly where you are financially.

• You may be entitled to government benefits .

You can find more key information about managing debts here.

Unravelling Complicated Affairs after Someone's Death

• Arm yourself with the facts. When it comes to paperwork, financial and legal affairs - get organised. Find all the information you need, keep it together in one place and if you aren’t sure then get good advice.

• Don’t ignore legal issues or those associated with tax or debt. It is best to get them resolved as quickly and amicably as possible.

• Use those around you. If you are struggling to deal with a particular situation then use friends and family to help you get through it.

• Be prepared for a few surprises. Although we have all heard of death bed confessionals they rarely take place. It is not uncommon for former spouses, mistresses, illegitimate children and unpaid debts to come out the woodwork. If you feel unable to cope with them at the time then ask for some help.

You may find it useful to get professional advice from an expert in the relevant area. You can find specialist legal, financial and counselling advice in our Finding Local Help section.