If I die who gets money from mortgage insurance?

DVardysShadow

rhodesRocks wrote: »

It could have been pointed out surely by a professional to a lay person that a relative could make a claim for the insurance? I've been sat here for 5 years thinking everything was ok, and was mortified when the penny dropped!

The house is "tenants in common" (both have equal rights)

Well now the penny has dropped, it looks like you have dropped the same clanger as the policy seller, in leaving the property exposed to your alcoholic mother,

Do as you are told over putting the policy in trust and put the house as joint tenants or write wills to achieve the same ends.

rhodesRocks

Making a will will now be the top priority for us both!

rhodesRocks

Wh05apk wrote: »

This is not an issue of wills, all single life policies should be written in trust, otherwise the proceeds are paid to the estate, which potentially will then be subject to IHT.

By placing the policies in trust, any proceeds will be outside of your estate, and so currently not liable to IHT, and will also be paid in accordance with your wishes, quicker than potentially having to wait for probate.

Putting the policies in trust should be simple, a fairly simple form, you will need a couple of trustees, and that is it, there should be no fees connected with this, although as Dunstonh says, whilst L&G are doing the right thing advising you to sort this now, I suspect it is a thinly veiled sales attempt, once you sit down with the "advisor" no doubt they will try to recommend further products, you could just phone L&G and ask them to send you the forms.

Thanks for that. L&G have offered it fee free which was what made me suspicious in the first place TBH.

The guy on the phone says it's now standard to put these type of policies in trust. Was it not standard 5 years ago? If not why not?

Wh05apk

rhodesRocks wrote: »

Thanks for that. L&G have offered it fee free which was what made me suspicious in the first place TBH.

The guy on the phone says it's now standard to put these type of policies in trust. Was it not standard 5 years ago? If not why not?

"Good" advisors have always been putting them in trust - or at least recommending it, but given the advisor does not get paid for it, then a lot probably gloss over it.

getmore4less

Do you have kids?

not clear from the posts if these are joint kids or they came with the partner.

If you have kids they would get everything if intestate not your mother

rhodesRocks

Wh05apk wrote: »

"Good" advisors have always been putting them in trust - or at least recommending it, but given the advisor does not get paid for it, then a lot probably gloss over it.

I've been looking through the documents and it says the adviser got £200 and 22p per month until the policies end(and could only quote on stuff for Legal and General, so not independent)

rhodesRocks

getmore4less wrote: »

Do you have kids?

not clear from the posts if these are joint kids or they came with the partner.

If you have kids they would get everything if intestate not your mother

Three kids in total, youngest with partner. Eldest is nearly 19, would she be my next of kin?

Wh05apk

All of your "natural" kids would be entitled to your estate, presumably you would like your partner to have something? hence why you need to get your wills done!

With regards to fees, the broker would get paid for the policy, but unless his company gave an "incentive" for good service to put policies in trust, would get nothing for setting the trust up (about 10 minutes work!)

rhodesRocks

Wh05apk wrote: »

All of your "natural" kids would be entitled to your estate, presumably you would like your partner to have something? hence why you need to get your wills done!

With regards to fees, the broker would get paid for the policy, but unless his company gave an "incentive" for good service to put policies in trust, would get nothing for setting the trust up (about 10 minutes work!)

What is best/quickest way to do wills?

getmore4less

You need to decide what you want and think through the senaioes not something to rush.

The key ones, individual death and multiple deaths

If you travel together all going at the same time is a possibility so you need to have a fall back if you don't want mum getting it.

There is will aid next month so now is a good time to get theings moving.
http://www.willaid.org.uk/