How to deal with your late loved one's debt

EXPERTS SHARE THE BEST WAYS TO HANDLE THEIR ESTATE. BY LARA OWEN

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NOTHING in this world is certain except death and taxes - and they both come with heavy financial implications. There is a lot of admin to wade through after losing a loved one - especially if they owed money.

From understanding your liabilities to navigating a will and knowing when not to pay, two financial experts break down how to deal with debt after losing someone.

Pause, notify and organise

Iain McLeod, head of private clients at St James's Place, says: “In 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’

Securing this legal documentation allows the estate to be managed properly and prevents delays when dealing with financial institutions.

Daniel Woodhouse, external relations manager at Money Wellness, echoes the need for clarity and swift communication.

“The first thing we'd suggest is letting any creditors know that the person has passed away,” he says.

“They'll usually pause the account while things are sorted, which gives you some breathing space.”

He advises obtaining several copies of the death certificate early on, as creditors may request one.

Once notifications have been made, assess the scope of the deceased's financial obligations.

“Start pulling together any paperwork that shows what debts or accounts were in their name,’ says Daniel.