Mortgage Payments after Death

hcb42

LilyDeTilly wrote: »

The insurance will get sorted and the reasons why it hasnt yet are not important as I just wanted to know the situation if one died beforehand.

You can get life insurance over the phone in five minutes, if you are relatively young and in decent health - can you not? Last time I did it I was pushing 40.

Thread has been lingering for days, unless one of these brothers was that close to death, that they cannot get any, a phone call (or 2) seems to best option.

getmore4less

LilyDeTilly wrote: »

Two brothers (neither married and no kids) buy a property and equally pay the mortgage payments (£275K mortgage on £425k property). Both mum and dad are still alive and kicking. One of the brothers dies without a will and without any life insurance. What happens to the house and the mortgage payments in this situation?

What other assets do the brothers have with £215k being 2/3 of the IHT limit here is a great risk that this could also become a complicating issue on the first death and almost certainly on the second if not done correctly if insurance is been looked at.

I suspect that any mortgage broker also advising on Insurance also needs to be able to give advise on IHT and tax planning at this level of potential assets or needs to refer the case to someone who is qualified.


To the OP if you want to know about inheritance and related issues I recommend stating with the IHT205 form and the PA1 form these link to enough info to realise that it s not that simple sometimes.

surreysaver

LilyDeTilly wrote: »

So if they are on a joint tenancy (which I believe they are) then the other brother would inherit half or the parents would??

I appreciate the explanations but all I really wanted to know was who would inherit the half if one brother died without a will as generally it would go to surviving parents rather than a sibling. But considering that both brothers are on the mortgage jointly, would this make any difference to inheritance laws?

You keep saying that the parents or the brother will inherit half the property. In a joint tenancy, both tenants own the whole property. Each brother owns the whole house. They do not own half each. Therefore, if one dies, the other one still owns the whole property. Even if they write a will saying they want half the house (or 40% or 20% or whatever) to go to the parents if one of them dies, the fact that a joint tenant still survives overrides this will, as he will still own the whole property.

If they are tenants in common, then they would own the house half each (or 60/40, 70/30 or whatever share they dictated), and if one died, then that share (50, 60, 70 or whatever) would pass on in inheritance.

RedSoleShoes

helencbradshaw wrote: »

You can get life insurance over the phone in five minutes, if you are relatively young and in decent health - can you not? Last time I did it I was pushing 40. Thread has been lingering for days, unless one of these brothers was that close to death, that they cannot get any, a phone call (or 2) seems to best option.

The issue was never that it was difficult to get life insurance. I'm not sure why most of the responses seem to be implying that I think this is the case.....

Of course getting life insurance to cover your death is obviously the sensible option to ensure cover of your mortgage payments. I just wanted to know what would happen in the event that there wasn't insurance and with inheritance usually going to surviving parent/s.

RedSoleShoes

surreysaver wrote: »

You keep saying that the parents or the brother will inherit half the property

I just assumed this was the case because they 'own' half the mortgage each. But your answer does clarify things. Thanks.