Author Topic: Wigan council chasing me for my dead mothers debt of council tax  (Read 246 times)

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Wildon

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I wonder if someone could help me with what I need to stop Wigan council chasing me for my deceased mothers debt of council tax.  I am the executor by default and have received the attached letters from Wigan council.  She had no savings and lived in a council house so no estate or savings to pay off this debt.  I have sent an email after the first letter arrived to tell them she had died and so they then cancelled the demand for this year, but still have 2945.27 subject to court proceedings.  Many thanks for any advice.

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disgruntchelt

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Re: Wigan council chasing me for my dead mothers debt of council tax
« Reply #1 on: March 17, 2025, 11:30:51 pm »
Are you the executor by default? Are you named in her will? If the deceased had no assets (not even a bank account) and a debt a date of death and no will you shouldn’t offer to be the deceased administrator.


PallasAthena

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Re: Wigan council chasing me for my dead mothers debt of council tax
« Reply #2 on: March 18, 2025, 01:23:49 pm »
The only way to stop them chasing you (which they are doing presumably because you have told them you are the Executor) is either to pay the CT bill or to provide them with whatever evidence they require that there is no money in the Estate to pay the CT debt. Ask them what they need from you so that they can write off the debt. When someone dies their debts are not cancelled, they have to be paid out of their Estate by the Executors if there is money in the Estate to do that.

If your mother, at the time of her death, owed debts (including the Council Tax) that were greater than her assets then she has an "insolvent estate". Have a look at this advice on what Executors must do if an estate is insolvent. In particular the order in which debts must be paid.

https://www.bereavementadvice.org/topics/probate-and-legal/insolvent-estates/

Normally when someone dies neither their family nor their executor are liable for their unpaid debts. But with an insolvent estate if you don't pay them in the correct legal order you, as executor, could become personally liable for her debts. (If you are the legal Executor or Administrator that is - I don't know what you mean by "executor by default". Did she leave a Will?)

First priority is to pay funeral and "testamentary expenses".

It sounds like any other debts (such as council tax) will be "unsecured creditors". Are there any other debts except council tax? If not, and if any assets of are less value than the CT amount owing, essentially everything she owned (once you have it in cash) you have to give to Wigan Council.

This page has template letters that might find useful

https://www.bereavementadvice.org/topics/probate-and-legal/dealing-with-insolvent-estates/
« Last Edit: March 18, 2025, 05:35:21 pm by PallasAthena »

d612

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Re: Wigan council chasing me for my dead mothers debt of council tax
« Reply #3 on: March 20, 2025, 12:39:44 pm »
Sorry for your loss....

The standard way of doing this is to write back saying the deceased had no assets and that you are not accepting any position of executor (if there is a will) and nor are you accepting any position of administrator (where there is no will). the term 'Next of kin' as you are has no legal standing in terms of dealing with a deceased's estate- ie you have no legal obligation to do anything.

People or organisations with debts owing to them can if they wish take on the role of executor/administrator themselves - as indeed they would be entitled to do having debts owing. In practice companies just write off the debt at this point.

However you really needed to have done this at first point of contact - once you start acting as an executor or administrator by "doing something" then you get into the messy situation of intermeddling as its called where indeed you have become embroiled in the mess by default as you put it.

Edit
A property formerely occupied by the sole deceased immediately post death becomes a Class F Council tax classified property as I recall which gives the executors 6 months(I think) totally free of council tax - or until the property is sold/re-let whatever. Usually the council is informed automatically by the "tell us once service" which is done at the time the death was registered. Certainly the last one I did in 2017 the whole thing was automatic with a letter from the council confirming exemption and as I recall a small refund for the council tax paid that month the person died in sent back to the deceased's bank account.
« Last Edit: March 20, 2025, 12:48:56 pm by d612 »

PallasAthena

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Re: Wigan council chasing me for my dead mothers debt of council tax
« Reply #4 on: March 20, 2025, 12:51:26 pm »
Edit
A property formerely occupied by the sole deceased immediately post death becomes a Class F Coucil tax classified property as I recall which gives the executors 6 months as I recall totally free of council tax - or until the proeprty is sold/re-let whatever.

OP said that it is a council house so presumably his mother's tenancy was terminated by her death and the property reverts to Wigan Council and so her Estate has no continuing liability for CT.  The 2024-25 Bill begins with over £3k brought forward so most of the money Wigan are chasing appears to be several years of arrears for which they have issued a Summons. Even though the OP is not personally liable (as next of kin) for the arrears, doing nothing would risk him having the baliffs on his doorstep hassling him.
« Last Edit: March 20, 2025, 01:15:02 pm by PallasAthena »
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Wildon

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Re: Wigan council chasing me for my dead mothers debt of council tax
« Reply #5 on: March 21, 2025, 10:17:45 pm »
Thank you for your responses, looks like a whole minefield ahead even if I advise of my mothers death, everything needs to be done in the correct order or I could be held responsible.  Such a stress on top of her death already.  What a shame I had no idea she was in debt but she was suffereing with the big C for two years before passing so no surprise things weren't always taken care of

I appreciate all of the help you have given.