If you die with a mortgage and no life insurance...

kingstreet

I thought it was irrevocable trust, not discretionary, that's why a nomination isn't binding on the Trustees?

holly_hobby

Lets split the difference and say that both may be used, although I'm not sure now ... ?

H

kingstreet

It's probably me out of date, H.

It's been a long time since I studied pensions/DIS rules.

holly_hobby

I'm no pensions expert either .... I did think DIS (poss wrong) held a DT, whilst the scheme itself is under an IT (ICTA regs) - but Im not confident now (pension regs were a long time ago for me too) !

Either way, we know even in the absence of an members EOW, that the benefits don't have to go through the decds estate on payment, .

H xx

itsthenoise

Forgive me if this has been answered, but if the children can't afford to raise the deposit to continue the mortgage and the property must be sold to cover the debt; if the property sells for less than the mortgage does that make the children liable for the debt?

This is all hypothetical but; the person I'm thinking of has no other assets, insurance or pension, just unfortunately lots of debt so there'd be no other assets to set against this debt.

kingstreet

No. The estate is liable for the debt.

Anything still owing after the assets are sold would be written off.

itsthenoise

Ok thank you.

getmore4less

If the estate is insolvent then it is often advisable to leave well alone and not get involved.

About the only thing you can deal with without getting involved by default is a funeral.

Anything else can if not carefull suck you into a lot of work and grief for no benifit. (know as intermingling).