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Deed of Trust query
Jackboy
Posts: 24 Forumite
Hi,
My partner and I (51 and 45) are looking to purchase our 1st house together. I will be contributing around 85% of the deposit.
We have had the (horrible but essential) discussion about what we would do if we were to split up and have agreed that if that were to happen we'd each get our deposits amounts back and split any additional equity 50/50.
I'm unsure about what would happen if 1 of us were to pass away though. We each have children from previous relationships so would want them to have any inheritance due.
We'd also not want to force the other to sell. As I'm putting in the largest share of the deposit I have thought about setting up a life insurance policy for the value of my deposit so she could afford to pay my share of the house to my children straight away.
I hope all that makes sense?!
Does anyone have any advice / guidance?
Thank you
My partner and I (51 and 45) are looking to purchase our 1st house together. I will be contributing around 85% of the deposit.
We have had the (horrible but essential) discussion about what we would do if we were to split up and have agreed that if that were to happen we'd each get our deposits amounts back and split any additional equity 50/50.
I'm unsure about what would happen if 1 of us were to pass away though. We each have children from previous relationships so would want them to have any inheritance due.
We'd also not want to force the other to sell. As I'm putting in the largest share of the deposit I have thought about setting up a life insurance policy for the value of my deposit so she could afford to pay my share of the house to my children straight away.
I hope all that makes sense?!
Does anyone have any advice / guidance?
Thank you
0
Comments
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If one of you dies, would the remaining partner be able to afford the whole mortgage and all the running costs? You may each need to take out life assurance for a good deal more than the amount of the deposit.No reliance should be placed on the above! Absolutely none, do you hear?1
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We'll have a very small mortgage so I'd be able to afford it but my partner wouldn't if she had to buy my children out due to the size of deposit I'd be putting down, so I'd like to take out life insurance for myself to cover that in the short - medium term at least.GDB2222 said:If one of you dies, would the remaining partner be able to afford the whole mortgage and all the running costs? You may each need to take out life assurance for a good deal more than the amount of the deposit.0 -
I suppose that the alternative is to set up a life insurance policy for the children, and a will that gifts your interest in the house to your partner?Jackboy said:
We'll have a very small mortgage so I'd be able to afford it but my partner wouldn't if she had to buy my children out due to the size of deposit I'd be putting down, so I'd like to take out life insurance for myself to cover that in the short - medium term at least.GDB2222 said:If one of you dies, would the remaining partner be able to afford the whole mortgage and all the running costs? You may each need to take out life assurance for a good deal more than the amount of the deposit.
No reliance should be placed on the above! Absolutely none, do you hear?1 -
Presumanly they would also like to leave an inheritance for their children so you might both consider life insurance policies1
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Thanks both. I think we need to look at being Tenants in Common.
My main concern was my partner and son being secure if I died whilst also protecting my childrens inheritance.
It's very complicated!0
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