Partner has recently died...what happens about joint mortgage?

rlaforge

Hi all, in a tricky situation and need some advice please. My partner of 5 years has passed away, we had a joint interest only mortgage. We both took out life insurance to cover full cost of amount borrowed if anything should happen.

The difficulty is that he is still married and I have just found out that there was a will written 20 years ago leaving everything to his wife. Her brother is named as the executor of the estate. I am aware that this pretty much means that she is entitled to all of his assets but where does that leave me with regards to the life insurance to cover the mortgage? The mortgage company have confirmed that we were joint tenants.

Any help would be much appreciated.

Rachael

Annisele

Did you take out one joint life assurance policy? Or did you each take out separate policies on your own individual lives?

If you took out a joint policy, then the life assurance money will go to you as the other policyholder.

If your partner took out a single life policy, and if it wasn't written in trust, then the death benefit will form part of his estate - and therefore be paid out according to his will.

If he took out a single life policy and it was written in trust, then the death benefit will go to the beneficiary(ies) of the trust.

getmore4less

Was the house joint tenant or tenants in common?
edit:
ok should read the post properly.

Were you financialy dependant on your partner?

rlaforge

Thanks for your reply. The policies are seperate and as far as I am aware his was not held in trust.

My initial fears are right then based on your info. Will the mortgage company assess my capability to pay the mortgage on my own? We had recently come out of a fixed rate and were paying SVR rate of 2.5% which would be manageable on my wages. Have a nasty feeling it would be a new mortgage though?

Rachael

Annisele

You'll probably be OK on the mortgage front; I believe your existing mortgage should continue on the same terms as before. If you want to make changes to your mortgage (eg move lender) you'll then need to be credit scored and your personal ability to repay will be assessed.

Were you financially dependent on your partner? If so, you might be able to make a claim against his estate.

rlaforge

Hi, no wasn't financially dependent as we split everything 50/50. Feel abit better about the possibility that mortgage may be on same terms, at least in the short term providing the rates don't shoot up.

This has caused me no end of heartache; the death of my partner has been overshadowed completely by the fear of financial insecurity for myself and my kids. A really good advert for getting married (or at least divorced)...and writing new wills.

Rachael

opinions4u

rlaforge wrote: »

Hi, no wasn't financially dependent as we split everything 50/50. Feel abit better about the possibility that mortgage may be on same terms, at least in the short term providing the rates don't shoot up.

This has caused me no end of heartache; the death of my partner has been overshadowed completely by the fear of financial insecurity for myself and my kids. A really good advert for getting married (or at least divorced)...and writing new wills.

Rachael

I know it doesn't help you Rachael. But I do hope that your post hits home with as many people as possible.

Make a will.

Review a will and keep it up to date.

Consider setting up power of attorney too while you're still young, beautiful and sane.

Make sure the proceeds of any life policies will go to where you want them to go.

getmore4less

In situation like this you could cross insure to avoid any issues of where the money goes. Its the other person life you need to insure not your own.

You still need insurance for your own dependants.

You were financialy dependant if he was paying 1/2 the mortgage.

1/2 the house and the mortgage will be included in the value of the estate.


Any work related insurance/pension that might have you as benifitiary.

Dave_Ham

This is not my specialist area and I feel for you and your family. Losing someone should not be about money, but unfortunately future life has to have a monetary element.

If you the single policies are for the amount of the mortgage, level term (interest only stated) taken at the time of the mortgage then the insurance salesperson has to be negligent.

This would demonstrate that it should have been put in trust and is an error on the advisor side and you should be compensated

I am not qualified to give more, but please please get decent, recommended legal advice.

betmunch

I agree with Dave Ham, if you used an advisor to set up the life insurance policies then it was negligent to write single policies and not put them in trust.

I know the last thing your going to want to go through would be a complaint and compensation request right now, but if your mortgage isnt paid off by this insurance then you should be compensated (in my opinion)

I wish you all the best

The_J

The only negligence here is the lack of a will.

Your mortgage terms will remain the same fortunately but you absolutely must plan for the future as rates will go up.