When Does Debt Become Uncollectible?

Dancing_Shoes

Its funny you should ask that but to prevent my monies becoming part of our estate I have had to allocate money to my children and my parents with only enough to cover the mortgage etc;)

Otherwise if I died first then left it to hubby, provided he survived me for 28 days then died it would all be in the "pot" and as it would be a very big pot then they would probably be successful due to the amount that would be left.

I have spent my lifetime saving and I had a very large pot before I met my husband so it would be unreasonable for it to benefit anyone other than my natural children imho. Its a morbid subject but I can sleep easy knowing that if I were to die my children would be able to lead a very affluent lifestyle with no money worries for a long long time. If it had all been my husbands money then I would feel differently and would expect him to have made provisions for ALL of his children. I know from what our pwc has said that she has made zero provisions for their children in the event of her death so lets hope despite her not being my favourite person that the worst in her case does not happen whilst they are dependant on her:rolleyes:

Soubrette

Even more off topic - my lovely OH and I had a huge argument a few months ago about whether assets from before our marriage should be seen as joint assets if we divorced.

I say no (at least until the girls are independent) but assets accumulated during our marriage are joint, but then he earns a lot more than me (and used to spend it all so little assets) so maybe I would say that

Luckily for us at the moment there are no other children involved, natural, step or otherwise so that makes things easier.

If I were to die then the estate gets divided into three, if we were both to die then it is in trust for my children, if we all die then it goes to his family. I see the will as a dynamic document though and it will be revisited if our situation changes and when the girls get older.

Not morbid - sensible

Sou

shell_542

I am really not clued up on anything to do with this :whistle:We don't even have wills.

So .... say after an NRP's death, any outstanding mortgage is cleared.

There is (totally hypothetical) £26000 paid out in life insurance extra paid to the widow. (I don't know how life insurance and all that jazz works, sorry if that is wrong lol )

The PWC makes a claim on behalf of hers and the NRPs natural 2 year old child for a sum of £26000, what she would have got from the CSA for the next 16 years.

What happens? Could they then give all of the life insurance to the child?

What about the natural children left with the NRPs widow? Are they not entitled to anything as the NRP was also providing for their upkeep?

shell_542

Soubrette wrote: »

Even more off topic - my lovely OH and I had a huge argument a few months ago about whether assets from before our marriage should be seen as joint assets if we divorced.

I say no (at least until the girls are independent) but assets accumulated during our marriage are joint, but then he earns a lot more than me (and used to spend it all so little assets) so maybe I would say that

Luckily for us at the moment there are no other children involved, natural, step or otherwise so that makes things easier.

If I were to die then the estate gets divided into three, if we were both to die then it is in trust for my children, if we all die then it goes to his family. I see the will as a dynamic document though and it will be revisited if our situation changes and when the girls get older.

Not morbid - sensible

Sou

That's simple for us. Neither of us had anything before our marriage :rotfl:We still don't have much now except for a mortgage!

Soubrette

shell_542 wrote: »

I am really not clued up on anything to do with this :whistle:We don't even have wills.

So .... say after an NRP's death, any outstanding mortgage is cleared.

There is (totally hypothetical) £26000 paid out in life insurance extra paid to the widow. (I don't know how life insurance and all that jazz works, sorry if that is wrong lol )

The PWC makes a claim on behalf of hers and the NRPs natural 2 year old child for a sum of £26000, what she would have got from the CSA for the next 16 years.

What happens? Could they then give all of the life insurance to the child?

What about the natural children left with the NRPs widow? Are they not entitled to anything as the NRP was also providing for their upkeep?

You would think that the size of the estate would come into play with any kind of claim made against it, I can't say for sure though.

My divorce settlement was very generous - despite the ex hiding as many assets as he could, enough was in my name for tax reasons (I did divide those in half though) that I could afford a modest 3 bed house in the area the girls grew up in.

I'd hate to be in a position where we couldn't afford a roof over our head, or had to move far away, because I've had to pay half to my OH This would obviously change once they were independent though. To be honest I can see where he is coming from but at the moment the children are most important to me when it comes to making sure they're looked after.

Sou

Dancing_Shoes

shell_542 wrote: »

I am really not clued up on anything to do with this :whistle:We don't even have wills.

So .... say after an NRP's death, any outstanding mortgage is cleared.

There is (totally hypothetical) £26000 paid out in life insurance extra paid to the widow. (I don't know how life insurance and all that jazz works, sorry if that is wrong lol )

The PWC makes a claim on behalf of hers and the NRPs natural 2 year old child for a sum of £26000, what she would have got from the CSA for the next 16 years.

What happens? Could they then give all of the life insurance to the child?

What about the natural children left with the NRPs widow? Are they not entitled to anything as the NRP was also providing for their upkeep?

The NRPP if married has the biggest claim on the estate then all the natural children have an equal claim. For a smallish amount not alot of solicitors would take on the claim as it wouldn't be worth their while as the children would be entitled to legal aid. It is advisable to make sure you have a will even just so that you have piece of mind re guardians for your children if you were to both die (or it would be up to the local authority:eek:). They wouldn't pay out all of the life insurance to the 2 year old as the wife would have a claim plus all other natural children. Hope that makes sense

Blob

Do a will the Gov get about the same from people dieing without a will as they do from income tax!

shell_542

Dancing_Shoes wrote: »

The NRPP if married has the biggest claim on the estate then all the natural children have an equal claim. For a smallish amount not alot of solicitors would take on the claim as it wouldn't be worth their while as the children would be entitled to legal aid. It is advisable to make sure you have a will even just so that you have piece of mind re guardians for your children if you were to both die (or it would be up to the local authority:eek:). They wouldn't pay out all of the life insurance to the 2 year old as the wife would have a claim plus all other natural children. Hope that makes sense

Thanks DS.

We do need to sort our "stuff" out.

plimsoll

Dancing_Shoes wrote: »

There would not be any claim for the ex as they lose their entitlement upon divorce .

actually I'm not sure that's completely true. If there is a financial settlement made (&ratified by court) as part of the divorce then ex has no further financial claim in life or death other than that agreed by settlement (works both ways). If there is no financial settlement made then ex is not entitled to anything life or death if he or she remarries (that only works one way afaik, ex who hasn't remarried could still claim against one who has). If neither of the above apply then an ex can apply for a settlement to be made at any point (e.g. if hear you've won lottery/inherited money...). That's why I'm considering going for a nil settlement as ex has thus far not signed up to say I can have the amount we had verbally agreed and I may well come into a significant inheritance (depending on wills, how long grandparents live etc) whereas he has no chance (his mum has no assets & he has no living grandparents). What I don't know is whether an ex could (having no financial settlement) apply to estate after death. I'm guessing if a will has been made since divorce then ex couldn't but if intestate maybe could?

Blob

After the divorce/seperation you should as a matter of course make a new will, come to that it should be revied every 5 years or so. When you make your new will if you think that there is any chance of your ex or anyone elce for that matter putting in a clame on your estate, you simple put in an exclusion on that person, something like I'I here by exclude Mr or Mrs X from any part of my estate' that is all it takes.