Joint loan question

Sazzie23

I have a joint secured loan with my Ex OH, although we are still living together as I look after him due to his illness. About 8 more years to go, should never have taken it out, but stupid is as stupid does:o

This is our only joint debt, I have made all the repayments since he had to retire in medical grounds in 2013.

This is a bit macabre but it's on my mind so I'll have to put it bluntly, he is not expected to survive into 2016, but he has other debt not associated to me and taken out when he was not living with me.

I realise I will be expected to take on the joint loan debt, which I do already so it's not a real problem, but will I somehow become liable for his other debts and funeral expenses?

He has a will currently leaving everything to me but has little of value and will die in debt. I am in a DMP and not in a position to take on any more ,of his debts - rubbish position to be in for everyone, but can't change what is done now. There are no insurance policies to pay out and we have never been married.

PeacefulWaters

His estate is liable for funeral costs and debts in his sole name. You shouldn't inherit the debts and are not liable for them but they could reduce (and probably wipe out) your inheritance.

If he has savings, there is a case for putting these into joint names. This way those funds become yours on death and don't have to be treated as part of his estate.

Do either of you own the property you live in?

Sazzie23

Thanks for replying.

I'm not expecting to inherit anything, he wouldn't want me too anyway (don't ask). I could just do without incurring any extra debt as I took a lot of our shared debt into my own accounts when I went into DMP, so that he could have an OK credit history as mine was already trashed. I took the debts but kept the house. Mortgage is in my name only but secured loan in both names although I don't think this means he is entitled to a share in the house, or am I wrong.

Maybe I'm making this sound more complex than it is.

He owes about £7k. No insurance, minimal income, repays £340 monthly.
I owe £20k on DMP monthly repayment £450.

Joint loan about £30k outstanding
Sole mortgage mine about £25k left. Bought in my name only.

I'm hoping the small amount of savings he has will fund the funeral as I can't afford to pay up. Obviously he contributes to our living expenses slightly, but to be truthful I'll be able to pay less council tax, less fuel bills, food costs etc so it's like to be break even. I'm also substantially worse off at the moment as I can't do overtime or take late shifts as I need to be home to look after him, so I'm hoping the negative financial impact will be limited. Just suddenly concerned that this joint loan might make me liable somehow or he becomes entitled to a portion of the house ? But from what you say sounds unlikely.

[Deleted User]

Sazzie23 wrote: »

but will I somehow become liable for his other debts and funeral expenses?

You won't become liable for his sole debts.

As for the funeral expenses, you only become liable for them, if you arrange the funeral and sign the paperwork.

If you don't, and nobody else agrees to (and there is no money in the estate, to cover it), the local council (or NHS if he dies in hospital) will provide a "Public Health Funeral".