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

dunstonh

Concur with the above that if the mortgage life assurance was arranged on single life, same owner basis (rather than life of another) then there is grounds for complaint if a mortgage adviser or financial adviser was involved. If joint life or single life on another (i.e. owner is you but life assured was your partner and vice versa) then there is no complaint.

The_J

That would never be upheld because the advice is perfectly acceptable if the will was in order.

betmunch

The will wasnt in order though.

Single policies should be written into trust to keep them outside of the deceased estate and used for the purpose they are intended.

dunstonh

That would never be upheld because the advice is perfectly acceptable if the will was in order.

Dont count on it. The most obvious solution is joint life, first death. Any alternative to that would need justifying.

I am aware of a tied salesforce that frequently used single life of another and that would be ok (although joint is still most logical)

The_J

Without knowing the conversation we cannot be sure but it's far easier and more flexible to not put something into trust and sort out your will (IHT notwithstanding).

Someone who doesn't change their will sounds like someone who would take the easy option if given.

edit: Agree on the joint life thing, that's a bit odd if it was for the mortgage. I would dig out the recommendation letter. You would have a better angle with this than trusts in my view (trusts are complicated).

kingstreet

I can't think of a decent reason not to write a single life policy in trust;-

- flexible beneficiary options/classes
- creditor protection
- inheritance tax protection
- speedier claim settlement
- no need for probate.

It's a different matter for joint life cases, but if a professional is recommending single life cover, I can't see how they can justify not writing it in trust.

betmunch

I thought the type of trust used for this is quite simple.

I have some insurance written into trust to look after my daughter and it was straight forward enough.

Agree the policy should have been writen as a joint policy, failing that then there needs to be some justification as to why not, especially as the advisor would have known the applicants were not married.

The_J

kingstreet wrote: »

It's a different matter for joint life cases, but if a professional is recommending single life cover, I can't see how they can justify not writing it in trust.

We don't know the situation fully enough to comment. There could be dependents from the previous marriage, the wishes and plans of the life insured could therefore have been complicated and therefore a trust would not offer the flexibility required.

whitewing

are the children your own, or both of yours?

dunstonh

There could be dependents from the previous marriage, the wishes and plans of the life insured could therefore have been complicated and therefore a trust would not offer the flexibility required.

Why wouldnt it offer flexibility? A flexible trust would cater in most cases.

We don't know the situation fully enough to comment.

Correct. It is possible we are jumping the gun. It may be that no adviser was used and bought online. It maybe that the plans are packaged as life of another.