Mortgage after death

laurab321

Flugelhorn said:

2. You would be able to move house without extra stamp duty providing you were replacing your current main residence with a new main residence

PS is there any life insurance on the mortgage?

Thank you. I was called this morning by her and asked to witness the Will. I voiced my concerns and was told there is a life insurance policy in place to cover it. For my own peace of mind I have asked to see this which she has said she has no problem with. 

laurab321

Thrugelmir said:

RetSol said:

You are absolutely right to be concerned, @laurab321.  I strongly suggest that you raise your concerns with your partner's mother.  This matter concerns you personally.  Mother is entitled to make whatever provision in her will she thinks fit but has a responsibility not to leave a mess behind. 

Some would say mind your own business. Money can bring out the worst in families. 

Yes and I would agree with that statement but if it is going to affect our family (we have two very small children with a mortgage to pay for) then surely we need to know where we stand. I’m not interested in gaining anything from her as we’ve sorted ourselves out completely to date but I don’t want us to be left financially unstable if there are going to be implications with what she is doing. 

Thrugelmir

laurab321 said:

Thrugelmir said:

RetSol said:

You are absolutely right to be concerned, @laurab321.  I strongly suggest that you raise your concerns with your partner's mother.  This matter concerns you personally.  Mother is entitled to make whatever provision in her will she thinks fit but has a responsibility not to leave a mess behind. 

Some would say mind your own business. Money can bring out the worst in families. 

Yes and I would agree with that statement but if it is going to affect our family (we have two very small children with a mortgage to pay for) then surely we need to know where we stand. I’m not interested in gaining anything from her as we’ve sorted ourselves out completely to date but I don’t want us to be left financially unstable if there are going to be implications with what she is doing. 

There's no obligation to accept the estate left in the will. If it is causing you that much of a problem. Just tell the MIL to change her will. Then there's nothing to be concerned over.  

I suspect your MIL is going to wish she never told you what her will contained. 

davidmcn

laurab321 said:

Flugelhorn said:

2. You would be able to move house without extra stamp duty providing you were replacing your current main residence with a new main residence

PS is there any life insurance on the mortgage?

I was called this morning by her and asked to witness the Will.

Not a great idea for a beneficiary's partner to be a witness.

MWT

laurab321 said:

Thank you. I was called this morning by her and asked to witness the Will. I voiced my concerns and was told there is a life insurance policy in place to cover it. For my own peace of mind I have asked to see this which she has said she has no problem with. 

If your mother wants to reduce the chance that her Will could be successfully contested in Court then you should not be acting as a witness.

Beneficiaries and their partners should not be witnesses.

It does not invalidate the Will, but the lack of independence makes it easier to contest, if for example the boyfriend was not happy with the arrangements, or there are other relatives who feel they have a claim...

laurab321

davidmcn said:

laurab321 said:

Flugelhorn said:

2. You would be able to move house without extra stamp duty providing you were replacing your current main residence with a new main residence

PS is there any life insurance on the mortgage?

I was called this morning by her and asked to witness the Will.

Not a great idea for a beneficiary's partner to be a witness.

No I don’t think so either but she doesn’t think these things through. 

getmore4less

The proposal creates a trust with the BF as a life tenant.

The partner and other siblings inherit nothing they just become remaindermen of a trust.
The executors become the default trustees unless someone else is named as trustee.
no SDLT issues wile  the trust exists

before that the estate does not have a property only the residual equity unless there is something in place to discharge the mortgage,  a life policy may not be enough unless explicitly made out to pay of the debt.

if a wife of a beneficiary is a witness that legacy fails so not a good idea either as partner.

p00hsticks

laurab321 said:

davidmcn said:

laurab321 said:

Flugelhorn said:

2. You would be able to move house without extra stamp duty providing you were replacing your current main residence with a new main residence

PS is there any life insurance on the mortgage?

I was called this morning by her and asked to witness the Will.

Not a great idea for a beneficiary's partner to be a witness.

No I don’t think so either but she doesn’t think these things through. 

You really need to be persuading her to draw up her will properly via a solicitor, which she obviously isn't at present. What she's proposing to do with the house isn't that straightforward- you've already realised that questions like 'what happens if there is still a mortgage outstanding' need to be covered off in the will, and if she's picking partners of children as witnesses then she is  inadvertently setting them up to lose their inheritance. A visit to a solicitor will ensure that she DOES think things through, and result in a valid will that actually achieves what she wants.

laurab321

p00hsticks said:

laurab321 said:

davidmcn said:

laurab321 said:

Flugelhorn said:

2. You would be able to move house without extra stamp duty providing you were replacing your current main residence with a new main residence

PS is there any life insurance on the mortgage?

I was called this morning by her and asked to witness the Will.

Not a great idea for a beneficiary's partner to be a witness.

No I don’t think so either but she doesn’t think these things through. 

You really need to be persuading her to draw up her will properly via a solicitor, which she obviously isn't at present. What she's proposing to do with the house isn't that straightforward- you've already realised that questions like 'what happens if there is still a mortgage outstanding' need to be covered off in the will, and if she's picking partners of children as witnesses then she is  inadvertently setting them up to lose their inheritance. A visit to a solicitor will ensure that she DOES think things through, and result in a valid will that actually achieves what she wants.

Ok thank you. I will advise her of this when I speak with her next.