What happens if I die?

girl_withno_name

Hopefully this is the right place to post this query...

I'm just about to buy a property with my OH, as 50:50 tenants in common. I read that, if either of us die, the "interest of the deceased co-tenant will pass to the co-tenant's heirs" - does this mean that my heirs would become liable for my mortgage debt?

ACG

Debts dont pass down. Anyone owed money secured against the property is within their right to force a sale to get their money back.

This is why life insurance can be quite important.

girl_withno_name

Thanks. We'll both be taking out life insurance to, at least, allow the mortgage to be paid off in full.

ACG

If your not going through a broker, its worth a read up on trusts. If you are then they will (hopefully) do that as a amtter of course.

girl_withno_name

I'll be looking to purchase the life insurance through the benefits available from my employer. So I shall have to read up on trusts!

The_J

Remember if you lose your job, or indeed change jobs, any benefits you have will stop. At that point sorting out insurance will not be at the top of your agenda. A separate policy is likely to be cheap if you are young and will not rely on where you work.

I would strongly advise a policy outside of work and use anything gained from an employer as a 'bonus'.

ACG

Personally, id agree with the J - for what life insurance costs.

Its unlikely you will remain with the same company for the rest of your working life and beyond. Life insurance is chaeaper to buy the younger you are and you never know what will happen in the future - you could become un-insuranble for health reasons.

Mojisola

girl_withno_name wrote: »

Hopefully this is the right place to post this query...

I'm just about to buy a property with my OH, as 50:50 tenants in common. I read that, if either of us die, the "interest of the deceased co-tenant will pass to the co-tenant's heirs" - does this mean that my heirs would become liable for my mortgage debt?

Just being nosy but why have you gone for tenants in common ownership? Have you written wills? Who will inherit your half of the house? Aren't you concerned that the survivor will have to sell their home to pay off whoever inherits the other half of the house?

girl_withno_name

Mojisola wrote: »

Just being nosy but why have you gone for tenants in common ownership? Have you written wills? Who will inherit your half of the house? Aren't you concerned that the survivor will have to sell their home to pay off whoever inherits the other half of the house?

At the moment we are not married, and this seemed to be the recommended option in such a situation. We haven't written wills, so I guess parents would inherit the half of the house as next of kin...

holly_hobby

girl_withno_name wrote: »

At the moment we are not married, and this seemed to be the recommended option in such a situation. We haven't written wills, so I guess parents would inherit the half of the house as next of kin...

Therefore if either of you wish your OH to inherit the property, you MUST write a will ... TIC arrangements are usually for buying parties whom are not "life partners".

If you are writing to 2 seperate term assurances for your respective share/or total borrowings, it is highly advised that they be written under trust, or on the "life of another" ... which means that there will not be any lengthy probate delays in settling the half of the mge of the respective decd individual.

If you want to leave your half to anyone other than your OH, then again via a will, or the laws of intestate would apply, whereby your share would go to your parents ... then what happens to your OH if the beneficary wants to release their equity ?

Please ensure your adviser is beyond thorough in making sure this arrangement is both appropriate and suitably addressed protection and trust/will wise.

Hope this helps

Holly

getmore4less

You can allways just do joint tennants if you are happy that this is a joint venture and the equity being built up is for joint benifit.

House stays with partner along with the debt and bypasses probate.

you insure each other if you need to clear some all of the debt, so that never sees probate

Rest of your assets become part of your estate.


Now this senario is the simple one.

What if one of you become criticaly ill
That is the more financialy cripling situation if you both end up out of work.

Then you have to consider if you decide it is not working, breaking the joint tenacy is quite easy but what happens next.

You need to think through all exit senarious not just one of you snuffing it.

Also consider the case that both of you die close together(car crash)
what do you want to happen then.

exit senarious can either of you buy the other out, how do they pay the equity due with they be able to remortgage.

negative equity, no remortgage or sale without injections of cash.

.............