financial<\/a> matters after a loved one\u2019s death can feel both overwhelming and daunting. Iain McLeod, head of private clients at St James\u2019s Place, says: \u201cIn England and Wales, obtaining grant of probate or letters of administration should be the priority, as banks and lenders will normally only take instruction from an executor or administrator.\u201d<\/p>\nSecuring this legal documentation allows the estate to be managed properly and prevents delays when dealing with financial institutions. Daniel Woodhouse, external \u00adrelations manager at Money Wellness, echoes the need for clarity and swift communication.<\/p>\n
![\"A](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/06\/1749590834_935_0_How-to-deal-with-debt-after-a-loved-ones-death.jpg\")
Loved ones will have to tackle a mountain of paperwork after a death including grants of probate and letters of administration(Image: Alamy\/PA)<\/p>\n
\u201cThe first thing we\u2019d suggest is letting any creditors know that the person has passed away,\u201d he says. “They\u2019ll usually pause the account while things are sorted, which gives you some breathing space.\u201d He advises obtaining several official copies of the death certificate early on, as creditors may request one.<\/p>\n
Once notifications have been made, it\u2019s time to assess the full scope of the deceased\u2019s financial obligations. \u201cStart pulling together any paperwork that shows what debts or accounts were in their name,\u201d says Daniel. Accessing a credit report is also helpful for building a complete picture of what\u2019s owed.<\/p>\n
Who pays: State or family?<\/p>\n
Who owes what when it comes to a deceased person\u2019s debt is a common question and source of confusion. \u201cDebts are not inherited in the UK,\u201d says Iain. \u201cFamily members can only be responsible for a deceased person\u2019s debts if it was a joint loan or \u00adagreement, or provided a loan \u00adguarantee, for example.\u201d<\/p>\n
The rules are strict on this. \u201cIf someone dies, their debt becomes a liability of their estate,\u201d he says. \u201cThe Personal Representative of the estate will use the assets of the estate to help settle the debt. If the estate does not have \u00adsufficient funds, it becomes an insolvent estate. In that situation, there is a prescribed order for how the debts are to be repaid.\u201d<\/p>\n
![\"Iain](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/06\/1749590835_326_0_How-to-deal-with-debt-after-a-loved-ones-death.jpg\")
Iain McLeod, head of private clients at St James\u2019s Place, shares his expert advice over handling an inheritance(Image: St James’s Place\/PA)What happens to joint debts?<\/p>\n
Responsibilities are different for shared debts however. \u201cIf you had a joint loan or shared overdraft with the person who passed away, you\u2019ll usually become responsible for the remaining balance,\u201d says Daniel. \u201cIt\u2019s really important to speak to the lender and let them know what\u2019s happened. Most will be understanding and may be able to offer more manageable repayment options.\u201d<\/p>\n
Credit card debt, however, is more nuanced. \u201cWith credit cards, these are only ever in one name, however, the credit provider may allow a second card for a partner or spouse to use,\u201d says Iain. \u201cThe debt is the responsibility of the estate of the deceased primary cardholder. Additional card holders may consider applying for a new credit card in their own name if eligible.\u201d<\/p>\n
But being an additional cardholder on someone\u2019s credit card isn\u2019t the same as a joint debt. \u201cYou wouldn\u2019t normally be liable for the balance in that case,\u201d says Daniel.<\/p>\n
Can inheritance be claimed by creditors?<\/p>\n
The short answer is yes, but only indirectly. \u201cCreditors can\u2019t go after beneficiaries directly,\u201d says Daniel Woodhouse from Money Wellness. \u201cBut debts must be paid from the estate before any inheritance is passed on. If money is handed out too soon, there\u2019s a risk it could be claimed back to pay off outstanding debts. That\u2019s why it\u2019s so important to follow the right process.\u201d<\/p>\n
Iain McLeod underscores the legal implications. \u201cGreat care should be taken in the administration of an estate which may be insolvent, and seeking legal guidance where appropriate is advised. Executors are strongly advised to receive written confirmation that any debts are repaid or written off before any distributions can be made to beneficiaries.\u201d If assets have been distributed without settling all the estate\u2019s debts, Iain warns that the executor could be personally liable.<\/p>\n","protected":false},"excerpt":{"rendered":"Dealing with a deceased loved-one’s debts can be extremely stressful but if it’s not handled correctly you could…\n","protected":false},"author":2,"featured_media":173946,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3093],"tags":[51,1777,2825,474,3121,2499,1200,16,15],"class_list":{"0":"post-174116","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-credit-cards","10":"tag-debt","11":"tag-finance","12":"tag-inheritance-tax","13":"tag-personal-finance","14":"tag-tax","15":"tag-uk","16":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114661546057359199","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/174116","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=174116"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/174116\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/173946"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=174116"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=174116"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=174116"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
![\"Woman](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/06\/0_How-to-deal-with-debt-after-a-loved-ones-death.jpg\")
It’s crucial that you understand how to deal with a dead loved-one’s debts or the problem could impact you(Image: Alamy\/PA)<\/p>\n