Loan taken out by husband

DeeisMe

Hope this is the right forum to post....apologies if not. My husband has taken out a large personal loan from the bank, from his own account. If he pre-deceases me, would I be liable to pay the loan off? I know for sure I would struggle badly. I would appreciate any help as I am rather worried about this.

Caz3121

The loan would be payable from his estate so it will depend on what other assets there are

DeeisMe

Caz3121 wrote: »

The loan would be payable from his estate so it will depend on what other assets there are

So do you mean that when I die the loan would then be payable? We own our home, no mortgage. Sorry to be a bit vague, as I don't understand the ins and outs!

~Brock~

DeeisMe wrote: »

So do you mean that when I die the loan would then be payable? We own our home, no mortgage. Sorry to be a bit vague, as I don't understand the ins and outs!

If the loan is just in your husbands name then it would not be affected if you were to die, but it would still remain payable

Although your husband would obviously have the option to clear it off from any other life insurance cover that you may have, he would not have an obligation to do so.

DeeisMe

Thanks Brock, I understand more clearly now.

Emmzi

if he dies first, and the loan is in his name, the loan must be paid before anyone gets anything from his estate.

this may include selling the house.

I would make him get life insurance if you are worried.

DeeisMe

Emmzi wrote: »

if he dies first, and the loan is in his name, the loan must be paid before anyone gets anything from his estate.

this may include selling the house.

I would make him get life insurance if you are worried.

Problem is life insurance would be far too expensive as he has major health issues. If he pre-deceased me, would the bank consider reducing the payments do you think, so I could manageably afford to pay back the loan?

Emmzi

DeeisMe wrote: »

Problem is life insurance would be far too expensive as he has major health issues. If he pre-deceased me, would the bank consider reducing the payments do you think, so I could manageably afford to pay back the loan?

It becomes payable immediately.

You would need to take out a loan yourself, on whatever terms you could get.

Has he already spent the money or could he cancel the loan and give it back? I'd be furious with him!!

DeeisMe

Emmzi wrote: »

It becomes payable immediately.

You would need to take out a loan yourself, on whatever terms you could get.

Has he already spent the money or could he cancel the loan and give it back? I'd be furious with him!!

Its spent, but with my knowledge...nothing underhand. However, we are both regretting buying the car now and I am just a bit worried for the future should anything happen to him. We recognise we have made a bad mistake.

simon_templar_2

The loan would not be 'passed onto' the wife in this case. In a lot of situations the loan company would ask if the loan can be repaid from the estate. If you reply back no then they 'write' it off.

Emmzi

simon_templar wrote: »

The loan would not be 'passed onto' the wife in this case. In a lot of situations the loan company would ask if the loan can be repaid from the estate. If you reply back no then they 'write' it off.

I think you will find their degree of chasing it up depends on the size of the loan. I do not think it is fair to give false hope that it will just dissappear. £500 maybe. £20k, no.