New mortgage, not married, OH has debt....advice please

maggie_12

Hi all

I couldn't find the 'perfect' place on the forum to ask this question, this seems to be the most relevant.

My fiance (no date set for wedding) is currently paying a trust deed to pay off his debt (should be paid off in 2.5 years). We recently moved into our new forever home and naturally have a higher mortgage than before. The mortgage and house are solely in my name as I knew if we tried for a joint application it would be rejected due to his debt. God forbid if we ever split up, I would do everything 50/50 as he has contributed to getting the house in the first place and obviously contributes to monthly expenses etc. I would never cut him out just because the house is in my name, I'd never do that.

What I'm unsure of is what happens if (touch wood) I were to....gulp...die!

The house is not in his name so I know from that point of view he would not be entitled to live there BUT is there anything I can add to my will so that he doesn't lose his home? I take it if I were to add his name to the title deeds/mortgage it would affect his trust deed? I don't want to upset the trust deed he is on a great deal which has resulted in him paying less per month than he was for a lesser term than before.

Any advice you can give would be of benefit. I have an appt with Solicitor on Monday to change the will so just looking for a bit of pre-advice before then.

Cheers

VfM4meplse

I'm no expert so can't offer any advice other than to have robust insurance policies out on each other's lives.

You seem like an honourable person...but tell me, what attracts me to your OH? He sounds like a financial liability, I have never understood women that support their menfolk if they are fit and able.

snugglepet20

If you have life insurance which pays off your mortgage when you die and you leave a will stating that he inherits your house then there will be no problem as the deeds will be put in his name. So I think you can sort something out but I am not a lawyer so there might be inheritance tax to think about or something?!

ViolaLass

VfM4meplse wrote: »

You seem like an honourable person...but tell me, what attracts me to your OH? He sounds like a financial liability, I have never understood women that support their menfolk if they are fit and able.

There's no indication that he's not contributing, he's just not named on the mortgage. And relationships are about more than financial contribution.

maggie_12

VfM4meplse wrote: »

I'm no expert so can't offer any advice other than to have robust insurance policies out on each other's lives.

You seem like an honourable person...but tell me, what attracts me to your OH? He sounds like a financial liability, I have never understood women that support their menfolk if they are fit and able.

It's called love.....!

maggie_12

snugglepet20 wrote: »

If you have life insurance which pays off your mortgage when you die and you leave a will stating that he inherits your house then there will be no problem as the deeds will be put in his name. So I think you can sort something out but I am not a lawyer so there might be inheritance tax to think about or something?!

Thank you!! Yes I have a good life insurance policy, and so does OH. That sounds like it could work. I'll speak to my solicitor on Monday.

Ta x

Hovel_lady

Leave him the house in your will.
When he's paid off his debt maybe you could re-mortgage. Both of you would be on the mortgage and therefore on the deeds.
Life insurance policies are a very good idea too. Do you have insurance to cover the mortgage if anything happens to you?

maggie_12

Hi Hovel Lady, yes we both have life insurance policies in place, his obviously won't cover the mortgage as he's not on it but I have insurance to cover my full mortgage. x

scheming_gypsy

Just try not to die before he's able to go on the mortgage... if not, the life insurance and will etc should take care of it.

getmore4less

DOn't forget that the rules of inheritance are different in scotland.

Pee

With life insurance this is easy provided your estate is worth less than £325,000. You can make a will leaving everything to him, ensuring he is provided for. (I presume this is what you want.)

You might like to consider a Discretionary Trust for his benefit to protect the house from his trust deed and debts, although this is more complicated and more expensive.

Basically, do you want him to have the house outright, or do you want someone else to be able to look after it and protect it for him from the debts? To my mind this depends on the size of the debts.