Inheritance tax question

Esty76

Hi all, my question is I have a house worth 155,000 today. My mortgage is due to finish 2040. I have life insurance covering 105,000 which is mortgage value right now. So 105,000 on death approved by policy. Me and husband on policy, however husband may separate next year, things are going thst way, but he won't contribute - he never has in 20 years (selfish and thats why separation, i may finally find confidence to say please leave, but after 20 yrs, as he has literally no where to go, thats what puts me off, so here i am living the sad depressive life 15 yrs after happiness ended and grumpy, aggressive,  mentally abusive guy started),  but I'm the only one paying anyway, always have been. If I die, is it best to transfer ownership to children before I die and if I still have credit card debt or loan,  if house in their name will debt still try to collect through probate from house If I'm classed as tenant once house transferred from child who now owns if I'm just tenant or just chase what's in my bank as the house isn't mine? 
Don't get me wrong, I'm not expecting to die just yet, but it worries me what will happen if I haven't managed to repay debts and I die suddenly 
Thanks all

tls123

You can change the life insurance to nominate your children at any time and certainly worth doing now if that’s your decision. If you don’t change it as it stands it would pass to your husband. Changing the house is a lot harder it sounds like you both own the house (married) Iikely that the ownership is set so surviving party would take the whole share usual when married (but you can check the deeds). If you have a mortgage against the house again the mortgage company would need to agree to allow changes to deeds as their charge is lodged until it’s paid off. I know you mentioned possibly separating from your husband, it might be worth a chat with a solicitor to make or review a will now. If you check a search of threads about changing property into childrens names whilst you own the property alot can go wrong you need to be clear about potential pitfalls do you really want to deprive yourself of financial security? 

Keep_pedalling

It would be very foolish to do this but you can’t transfer the house to your children while it is mortgaged. IHT is not an issue here your estate is no where near high enough to come into IHT territory even if you were not married and had no mortgage.

As the house is in your sole make you could make a will leaving it to your children, but the house is a marital asset and if you divorce your husband it is one of the assets that will be taken into account with any divorce settlement. What other assets do you both have in the way of savings and pensions? How old are your children?