Stoozing & 'Death Risk'

Grumpy_Old_Duffer

I have a nice little 'stooze pot' which is split about 50/50 into an Offset Mortgage Account which is in joint names, and a High Interest Savings Account which is in my name only.

If I were to die, what are the implications to my wife in respect of paying-off the Credit Card Companies? My understanding is that all accounts that I am named in will be frozen until probate.
What happens to the Credit Card Accounts ... are they frozen as well, or what?
How will she pay-off these accounts?

smartsaver

I am sure all accounts in your name, including credit cards would be frozen, then paid off with assets and the remaining money goes to wife and anyone mentioned in your will. This is what happened when an old aunt died.

When my dad died quite suddenly leaving an unprotected loan, my mum was liable.

zzzLazyDaisy

Accounts that are in joint names pass automatically to the surviving spouse and are not frozen. It is always worth having a spare 'pot' in joint names so that there is enough for funeral expenses and living expenses, as it can take some time for probate to be sorted out, even with a will (you HAVE both made wills, haven't you?)

I'm not sure about the CC debts, but if they are in your sole name, I think they would be frozen on death (but I am sure someone will confirm/correct this).

The house, assuming it is in joint names, passes automatically to the surviving spouse, along with the mortgage, although, hopefully, there is sufficient life insurance to pay the mortgage off in the event of your death, which would mean that the funds in the joint offset account would then pass automatically to your wife.

Grumpy_Old_Duffer

We have Life Insurance on Mortgage and Wills have been made. So those bases are covered.

If the Credit Card Accounts (in my own name) are 'frozen', I take it that no further monthly payments or Interest will be added during the process of my wife sorting out probate!!?

From what's been said, I take it the amounts I have stoozed against the Offset Mortgage will be accessable to my wife and she will be able to pay-off Credit Cards??

The only real 'problem' that I can see is the amount I have stoozed into a High Interest Saving Account. But I assume once probate has been sorted she will have access to that.

realaledrinker

Best advice I can give is to as many savings accounts & stooze pots set up on line using one of the consolidation software programs like egg Money Manager or FD Internet Banking Plus & then share password access with the missus/hubby.

Then if the unthinkable happened, there would be the opportunity to move money into sole accounts before joint accounts were frozen.

There again, this sort of thing would be the last thing on your mind in those circumstances.

Galstonian

If nothing else it demonstrates the need for keeping a record of what is owed where and making sure spouse/dependents know where this is in case the worst should happen.

Clariman

When I saw the title of this thread, I thought that one of the credit card companies had commissioned research from a leading academic to warn people that Stoozing could seriously damage one's health !

In answer to the question, credit cards are in the name of one person only, even if there is an additional card holder. i.e. only one person is liable for the debt. If that person dies with the debt still there, then the debt gets paid out of the estate of the deceased if there is sufficient money to do so, thereby reducing what the next of kin inherits. Loans can be in joint names, so the debt will pass to the surviving borrower.

Clariman

lipidicman

Clariman wrote:

When I saw the title of this thread, I thought that one of the credit card companies had commissioned research from a leading academic to warn people that Stoozing could seriously damage one's health !

LMAO! I wouldn't put it past Capital One!