Slightly Morbid but was curious...

K9cuddles

steve_cov wrote:

Ooh, generous: mine pays only twice my salary. But at least it'll pay off the mortgage.

Haha.. I suppose it depends what your salary is!

Johnhowell

lazy&indebt wrote:

I have just been filling in my application form to join by company pension scheme and there was an expression of wish form for you to nominate someone to receive a payout in the event of your death whilst working at the company and I was thinking, if I died tomorrow (I'm only 22 but anything can happen!) what would happen to my debts? I'm not married and live by myself so who would they be passed on to? My parents?

lazy&indebt,
Please note that this "death in service" insurance does not count towards your estate. This is why you must fill in the nomination form so it goes to whom you wish.

Even at the young age of 22 having a Will, especially if you own a property, is a good idea - do not have a solicitor as an executor, your parents and siblings are good choices. A simple Will is easy to put together.

Also, have an Enduring Power of Attorney made up - even easier than a Will - in case you have an accident and become mentally incapable. This will allow your Attorney (siblings, parents) run your estate whilst incapable without the dreaded Court of Protection being involved. Makes everyone elses life so much easier during a difficult time.

Regards,
John

lynsayjane

my folks would be fine if i kicked the bucket tomo, the capitol in my flat would more than pay off my debt and send my mum to las vegas to see celine dion ( i know, she is soooo sad!). in fact if it didn't mean i'd be homeless i'd sell my flat and make myself rich! oh the irony :rotfl:

Floss

file_wizzard wrote:

Any unsecured borrowing which was taken out in your name only would be effectively written off upon your death.

This may not be correct: the directgov website (http://www.direct.gov.uk/MoneyTaxAndBenefits/ManagingDebt/DebtsAndArrears/DebtsAndArrearsArticles/fs/en?CONTENT_ID=10013093&chk=GeJ8kQ)
states that "When someone dies, any debts they leave are paid out of their ‘estate’ (the money and property they leave behind). You’re only responsible for their debts if you had a joint loan or agreement or provided a loan guarantee - you aren't automatically responsible for a husband's, wife's or civil partner's debts" so they aren't written off.

Any mortgage is paid first, then funeral expenses, followed by HM Revenue & Customs, DWP, unpaid wages/pension contributions and then any other debts. After that, if there is any left, the legacies are paid.