What counts as an asset when someone dies?

[alwaysskint]

My mother is in the latter stages of dying - she was given weeks to live at the end of November, and we're trying to 'tidy things up' as it were.
She currently receives DLA higher rate and mobility, my stepfathers pension, and lives in a housing association property.
She also has an insurance policy (one of these Asda over 50's thing) where she's been paying £30 a month for just over £5k payout to cover the cost of a funeral.

Other than the furniture & household appliances, some jewellery - watch, some earrings and necklaces, clothing, nick naks - none of which are of any 'hidden secret' value, pots and pans etc in the house, she owns a 12 year old corsa (worth about £800 I believe but I'm no mechanic lol) and that is pretty much it.
She currently does not have a will - something we've been pressing her to make since receiving the news the cancer was terminal, but she doesn't appear to be in any kind of hurry to complete one


During the last few weeks, in order to get her affairs in order, we've come across 2 store cards and a credit card. It is my understanding that as these are unsecured debts, they don't need to be paid off.
If the value of her assets was to be worth more than £3k or £5k (Can't remember which) then we would need to go through probate, less and we can just apply for a letter of administration.... am I correct?

So, what would count as an asset for determining whether or not we need to go through with probate?
If she were to write her will, does anything she leaves to family and friends get counted as an asset before being distributed, or do we only count whatever is left? She has mentioned she wants to leave a particular necklace and earrings set to an aunt (bought 5 years ago for less than £25)

Any help gratefully received x

[Undercover Elsa]

Re: What counts as an asset when someone dies?

Hi alwaysskint,
When my mum died my sister and I were named as executors in her will. There was no house involved and she just had around £7K total in two accounts. All my sister and I had to do was take a wet copy of the will to the bank, they photocopied it and transferred the money out & closed the account. No problem at all. Her personal possessions were just shared between us amicably. We didn't need probate.
If there is debt, then they would expect to be paid from the estate after payment of funeral costs and other priority payments such as tax bills etc, but before share out of money between beneficiaries.
However with a small estate it is usually sufficient to send them a copy of the death certificate and a letter stating that there are no assets and will be no surplus after funeral and other essential costs.

[alwaysskint]

Re: What counts as an asset when someone dies?

Thanks Elsa, and sorry about your mum, hugs to you xx

Physical cash, there's only about £400 in a bank account, which she had me put onto following the diagnosis, and this fluctuates depending on what bills have been paid/monies received. It's never gone over about £800, and obviously should she go into a hospice the DLA element would have to go back to them anyway I believe.

[Undercover Elsa]

Re: What counts as an asset when someone dies?

I wonder if the easiest way might be for her to convert it into a joint account with you, so you'll have access once the worst happens?
Have a look at the T&C's of the bank that your Mum is with, on their website. They will have a section on this scenario. Some banks are more liberal than others.

[alwaysskint]

Re: What counts as an asset when someone dies?

Yes, I am now the joint account holder of this account, and we've made the bank aware of the situation

[Undercover Elsa]

Re: What counts as an asset when someone dies?

Well done honey, it should make things a lot easier xx