Dad critical. Leaving everything to me

Newlyboughthouse

My Dad has just been diagnosed as critically ill with a poor prognosis.

He has a large amount left on his mortgage. The house should have been paid off by now, but he has had to bail my mum out of huge debts so had to remortgage.

His savings, life insurance and pension should pay off enough to leave a only a small amount on the mortgage, but my concern is the life insurance. His policy is currently worth £70k if it pays out. However, he is now a smoker, but at the time of taking out the insurance he was a non-smoker. What I'm reading on the internet about this is mainly positive. Apparently as long as he was in fact a non-smoker at the time of application for the policy, it will still pay out. Anyone got any experience here?

Dad was massively rubbish at paperwork that went with his business, so I am now picking up the pieces i.e. getting a mountain of invoices sent out, paying a huge tax bill out of his savings. However, I won't be able to chase invoices when he is gone - so what are the legalities of being able to chase on his behalf when he passes?

So 2 main questions:

1. Can a smoker claim on a non-smoker life insurance policy?
2. How can I be enabled to chase his outstanding invoices on his behalf when he passes?

wwl

If you are executor you can chase any outstanding debts to the estate, but the mechanics may depend whether it's a limited company or sole trader.
If at all possible avoid letting on to debtors the situation as they may take advantage.
And if there isn't one already, making a Will would be a high priority (or reviewing any existing one).

melanzana

Sorry to hear that. My dear Dad was the same back in 1996. Critical, poor prognosis, but he survived and lived to enjoy us all, as we did him until he passed peacefully in 2001. RIP.

So you never know, I hope the same is for you and your Dad.

Still, if he recovers, it would be a perfect opportunity to sort things out. I think you should leave it and look after Dad at the moment, although that is really none of my business. Still, not much you can do at the moment except check with the insurance company on a hypothetical basis maybe?

Newlyboughthouse

wwl wrote: »

If you are executor you can chase any outstanding debts to the estate, but the mechanics may depend whether it's a limited company or sole trader.
If at all possible avoid letting on to debtors the situation as they may take advantage.
And if there isn't one already, making a Will would be a high priority (or reviewing any existing one).

Yes you're right I've checked with solicitor and as executor I would be able to, but a clause needed to be put in specifically to that effect. Re: his debtors, they all know how slack he is with getting invoices out so probably think they've got away with it. They will soon find out I am the opposite and quite the terrier.

melanzana wrote: »

Sorry to hear that. My dear Dad was the same back in 1996. Critical, poor prognosis, but he survived and lived to enjoy us all, as we did him until he passed peacefully in 2001. RIP.

So you never know, I hope the same is for you and your Dad.

Still, if he recovers, it would be a perfect opportunity to sort things out. I think you should leave it and look after Dad at the moment, although that is really none of my business. Still, not much you can do at the moment except check with the insurance company on a hypothetical basis maybe?

Yes hopefully this is a blessing (a scary one) in disguise and a perfect opportunity to get his life in order, finally! He was always secretive about it (possibly ashamed?) but now has no choice but to bare all. I hope this goes the same way as your Dad. Sorry for your loss x

wwl

Newlyboughthouse wrote: »

Yes you're right I've checked with solicitor and as executor I would be able to, but a clause needed to be put in specifically to that effect. Re: his debtors, they all know how slack he is with getting invoices out so probably think they've got away with it. They will soon find out I am the opposite and quite the terrier.

I meant if possible don't let them know of his current health situation as they may think they'll get away with not paying.

Savvy_Sue

Couple of questions for if Dad has NOT made a will - is he still married to your mother? Does he realise that if he is then everything will pass to her not you?

And is he a sole trader, or is his business a ltd company? Makes a difference to sorting it out ...

BobQ

Agree, the status of the business is pivotal to the situation.

As Sue says if there is no Will and he is still married you will not inherit as you expect,

Re the life insurance. What does the policy document say? If it says nothing about continuing not to smoke it will probably be OK. But given the policy is specific to non-smokers I would be surprised if there was not a clause in it requiring him to notify them if he started smoking. It may just be covered by a requirement to notify any material changes in circumstances. If the death certificate states a condition associated with smoking, they may well ask questions to get out of paying.

Newlyboughthouse

Hi thanks for kind responses. Yes will made.

getmore4less

BobQ wrote: »

As Sue says if there is no Will and he is still married you will not inherit as you expect, The first 250K will go to his wife and a life interest in the rest..

since 1 Oct 2014.

£250k + 1/2 the rest to the wife 1/2 to kids

It used to be life interest in 1/2 not the full amount,

The situation with no kids has also changed now the spouse gets everything.