No Will - consequences?

Bosvark@ said:
I dont think so - thats why you need life cover when you buy a house, and the banks offer debt cover in case of your death. Life insurance is important as your family can be held accountable as far as I know.
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I think the life cover is more in the interest of your family when you die..... so your house is paid off and they have a home.
 
Life cover serves three purposes 1) immediate cash flow to help the surviving family members, immediate expenses etc. (The estate can take a few months) 2) to settle whatever specific debt if ceded to a creditor e.g. house loan, credit cards etc. and 3)purely to increase the "inheritance".

Actually, whoever said creditors are not paid if you die intestate is talking nonsense. The executor will still go through the usual advertising and compilation of a L&D account process, whereby first secured, then preferent, then concurrent creditors are settled. The remaining estate will be divided to the family in accordance with intestate law.
 
SiriS said:
Actually, whoever said creditors are not paid if you die intestate is talking nonsense. The executor will still go through the usual advertising and compilation of a L&D account process, whereby first secured, then preferent, then concurrent creditors are settled. The remaining estate will be divided to the family in accordance with intestate law.
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You read like your ass again :D

The question was what happens if someone dies intestate and they have more liabilities than assets, i.e. they have a load of debt that will go unpaid.

In the end, those creditors will NOT be paid and they will have to absorb the loss.

The question was NOT about the process. It is obvious that there will be a process whereby all creditors must submit claims.
 
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blunomore said:
You read like your ass again :D
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Actually a valid point you make... :o Although "again" was unnecessary. :)

The question was what happens if someone dies intestate and they have more liabilities than assets, i.e. they have a load of debt that will go unpaid.

In the end, those creditors will NOT be paid and they will have to absorb the loss.

The question was NOT about the process. It is obvious that there will be a process whereby all creditors must submit claims.
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Then I fail to understand the question. How does it differ from dying WITH a will?

Dying with or without a will changes nothing in terms of how the creditors are dealt with. Creditors settled first, the remainder dealt with either in accordance with the testament or intestate law. Where liabilities exceed the assets, in both cases the creditors lose out (pro rata of course) and nobody inherits anything (excepts for specific exemptions.)

Mind you, the way the OP replied, it seems he's under the impression that their is some sort of "creditor advantage" by dying intestate, which is most certainly not the case. So maybe I read too well. :p :D
 
SiriS said:
Dying with or without a will changes nothing in terms of how the creditors are dealt with. Creditors settled first, the remainder dealt with either in accordance with the testament or intestate law. Where liabilities exceed the assets, in both cases the creditors lose out (pro rata of course) and nobody inherits anything (excepts for specific exemptions.)

Mind you, the way the OP replied, it seems he's under the impression that their is some sort of "creditor advantage" by dying intestate, which is most certainly not the case. So maybe I read too well. :p :D
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True.

If your liabilities exceed your assets, then someone will either NOT get paid AT ALL, or get NOT get paid IN FULL.
 
blunomore said:
No.

Only those that cannot be paid in full (because the estate does not have enough assets to cover the liabilities) or those that cannot be paid at all (for the same reason).
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That's what I meant, but didn't articulate too well. I should have said, the debts that can't be settled by your estate die with you.
 
i wonder if someone could clear this up for me: I heard if you die without a will (& for example not married & no children) - all your assets go to the state? thats why i had one drawn up very quickly.
 
Billy said:
That's why Credit Providers generally want some sort of life cover.
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... it's not compulsory (unless things have changed recently).

My father bought a place and for whatever reason, elected not to take cover. When he passed, we needed to pay off the rest of the house and sell the car ASAP
 
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