What if the deceased held a personal or home loan in their sole name?
The estate of the deceased is liable for debts and other liabilities of the deceased incurred before he or she died, and must repay any loans by Defence Bank.
Defence Bank may in some circumstances offset an outstanding debt of the deceased against deposits in the same name and capacity if the Executor(s) or other Legal Representative(s) agree and the relevant account terms and the law permits.
If there are insufficient assets to pay the debts of the Estate you should obtain legal advice or see a financial counsellor before any payments are made. The Executor(s) or other Legal Representative(s) of the Estate
are not personally liable for the prior debts of the deceased.
There are a number of options available to the Executor(s) or other Legal Representative(s) in regards to any outstanding debt owed, which depending on the circumstances may involve the sale of property, refinancing the loan, or repaying the loan. The Executor(s) or other Legal Representative(s) should consider obtaining legal and financial advice before taking any action in this respect.
We appreciate any further advice you can provide in regards to the intentions surrounding the debt(s) held, and whether it is believed the Estate will be able to settle any solely owned outstanding debt.