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Loans and Death
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thebullsback
Posts: 607 Forumite


in Loans
What happens to unsecured loans and any other unsecured debt ie credit cards ect when the Debtor dies?
Keep in your thoughts the poor Beasts of burden around the World and curse All who do them harm.
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They will settled from the estate assuming the estate has value.0
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I've always wondered about death in service payments from work. If I die my company will pay death in service of five times my annual salary to a named person.
If I have a mortgage will the outstanding amount owed be taken out of this death in service payment?0 -
tends to be paid off from the estate-X-Missima-X-0
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I've always wondered about death in service payments from work. If I die my company will pay death in service of five times my annual salary to a named person.
If I have a mortgage will the outstanding amount owed be taken out of this death in service payment?
This usually goes directly to the named person and doesn't form part of the estate.0 -
Secured debts are repaid with the sale/transfer of property.
Unsecured debts (in sole name) die with the debtor, no matter what you may or may not be told. Finance eg caravan/car, the lender can request to take back the asset or ask for someone to take on the debt.0 -
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Secured debts are repaid with the sale/transfer of property.
Unsecured debts (in sole name) die with the debtor, no matter what you may or may not be told. Finance eg caravan/car, the lender can request to take back the asset or ask for someone to take on the debt."Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."0 -
I've always wondered about death in service payments from work. If I die my company will pay death in service of five times my annual salary to a named person.
If I have a mortgage will the outstanding amount owed be taken out of this death in service payment?
It depends.
If you are able to nominate a person and they will receive it, in theory it's part of your estate and things like inheritance tax, debts, etc affect it.
For this reason, few schemes work like this. Usually you nominate a beneficiary, and it is up to the trustees of the scheme to decide if they want to pay, and if so, to that person. In reality, they would always obey your wishes, but the fact that they are not bound by your wishes, means it's money going from the company to the beneficiary, not from you to the beneficiary.0
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