Death of sole trader - how do creditors get paid
Discussion
My brother in laws business sold goods to a sole trader business value of £1800 inc. VAT.
Unfortunately the sole trader died.
My brother in law has contacted the family about the outstanding bill, and they are refusing to pay, saying as he is dead, there is no liability.
Surely the invoice should be paid out of his estate?
Is there any central register of executors of wills? This would enable my brother in law to inform the executor of the outstanding invoice?
Unfortunately the sole trader died.
My brother in law has contacted the family about the outstanding bill, and they are refusing to pay, saying as he is dead, there is no liability.
Surely the invoice should be paid out of his estate?
Is there any central register of executors of wills? This would enable my brother in law to inform the executor of the outstanding invoice?
Yes the estate is liable for the debt.
If the deceased left a Will the executor will need to apply for Probate and the Will will become public. In the meantime, write a letter detailing the claim and address it to the 'Executors of the estate of the late ...................' at the deceased's last known address.
If the deceased left a Will the executor will need to apply for Probate and the Will will become public. In the meantime, write a letter detailing the claim and address it to the 'Executors of the estate of the late ...................' at the deceased's last known address.
SVTRick said:
Leave the family to grieve in peace and write off the debt against profit.
He has passed away and his family should get first dibs after the tax man.
This debt will be way down the pecking order.
Actually, debts are settled before bequeaths.He has passed away and his family should get first dibs after the tax man.
This debt will be way down the pecking order.
Shows what you know huh.
Edited by andy.mod on Wednesday 27th December 15:01
PurpleMoonlight said:
SVTRick said:
Leave the family to grieve in peace and write off the debt against profit.
He has passed away and his family should get first dibs after the tax man.
This debt will be way down the pecking order.
Actually, debts are settled before bequeaths.He has passed away and his family should get first dibs after the tax man.
This debt will be way down the pecking order.
Shows what you know huh.
Always the first and last to buy a round.
Never a whinge.
Edited by andy.mod on Wednesday 27th December 15:01
I thought this topic rang a bell; PH search worked for once:
https://www.pistonheads.com/gassing/topic.asp?t=16...
https://www.pistonheads.com/gassing/topic.asp?t=16...
PurpleMoonlight said:
Yes the estate is liable for the debt.
If the deceased left a Will the executor will need to apply for Probate and the Will will become public. In the meantime, write a letter detailing the claim and address it to the 'Executors of the estate of the late ...................' at the deceased's last known address.
Thanks for your helpIf the deceased left a Will the executor will need to apply for Probate and the Will will become public. In the meantime, write a letter detailing the claim and address it to the 'Executors of the estate of the late ...................' at the deceased's last known address.
cat with a hat said:
SVTRick said:
He has passed away and his family should get first dibs after the tax man.
This debt will be way down the pecking order.
His family should not get first dibs.This debt will be way down the pecking order.
You insult the OP for being a "money grabber", but you're the real snake.
Mandat said:
On a point of order, it should be £1,500 since the £300 VAT can be recovered from HMRC.If it gets paid, then £1,800 needs to be paid - and the £300 VAT can be offset on the trader's VAT return, if he was VAT registered.
PurpleMoonlight said:
SVTRick said:
Leave the family to grieve in peace and write off the debt against profit.
He has passed away and his family should get first dibs after the tax man.
This debt will be way down the pecking order.
Actually, debts are settled before bequeaths.He has passed away and his family should get first dibs after the tax man.
This debt will be way down the pecking order.
Shows what you know huh.
Edited by andy.mod on Wednesday 27th December 15:01
4rephill said:
PurpleMoonlight said:
SVTRick said:
Leave the family to grieve in peace and write off the debt against profit.
He has passed away and his family should get first dibs after the tax man.
This debt will be way down the pecking order.
Actually, debts are settled before bequeaths.He has passed away and his family should get first dibs after the tax man.
This debt will be way down the pecking order.
Shows what you know huh.
Edited by andy.mod on Wednesday 27th December 15:01
4rephill said:
And I'm sure the family of the deceased trader are over the moon to receive an "I want My money from your dead relative!" demand over the Christmas period!
Where does the OP state the deceased's family were contacted over Christmas?It could have been a month ago for all you know.
4rephill said:
PurpleMoonlight said:
SVTRick said:
Leave the family to grieve in peace and write off the debt against profit.
He has passed away and his family should get first dibs after the tax man.
This debt will be way down the pecking order.
Actually, debts are settled before bequeaths.He has passed away and his family should get first dibs after the tax man.
This debt will be way down the pecking order.
Shows what you know huh.
b) business is business - no room for sentimentality
Edited by andy.mod on Wednesday 27th December 15:01
4rephill said:
And I'm sure the family of the deceased trader are over the moon to receive an "I want My money from your dead relative!" demand over the Christmas period!
That's a very negative reading of the OP's post.Edited by andy.mod on Wednesday 27th December 15:01
It's far more likely that the OP has heard about his BIL's problem during a Christmas visit, and is asking other PHers for info on his BIL's behalf.
Gassing Station | Speed, Plod & the Law | Top of Page | What's New | My Stuff