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Thomas Judge
Thomas Judge, Lawyer
Category: Law
Satisfied Customers: 32991
Experience:  Over 25 years experience in law
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My cousin died recently and as next of kin I am acting as personal

Customer Question

My cousin died recently and as next of kin I am acting as personal representative.I have
personally paid the funeral expenses (£2502) pending refunds (insurances etc)into the estate which will amount to approx £500.I also received £491 from closure of a bank
account which had been credited with £440 overpaid state pension/pension credit which
I am being asked to repay to Dept for Work & Pensions.Unsecured creditors amount to
approx £5000.There are no other assets.
Does the DWP overpayment rank as an unsecured creditor or should I repay the £440
from my bank account?
Submitted: 1 year ago.
Category: Law
Expert:  Thomas Judge replied 1 year ago.
Thank you. You state that the value of the estate is not enough to pay off all the debts owed by your cousin, this is known as an ‘insolvent estate’. Where this is the case, you must payoff what debts they can in the following priority order.Secured debts such as mortgage and secured personal loans.Reasonable funeral costs and the costs of administering the estate.Unsecured debts, such as credit cards, unsecured personal loans, gas, water and telephone bills, unpaid rent, Council Tax and other taxes, and repayment of overpaid benefits.The DWP would be considered an unsecured debt. If there isn’t enough money to pay everyone, you should inform the creditors that the estate is insolvent. I hope that helps. Please rate positive.
Thomas Judge, Lawyer
Category: Law
Satisfied Customers: 32991
Experience: Over 25 years experience in law
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Expert:  Clare replied 1 year ago.
MY colleague is entirely correct in terms of the fact that secured loans and funeral expenses come first - but "government debt" such as the DWP overpayment come next - so if there are any funds left over after paying the Funeral cos s- it goes to the DWP