Query about estate in will

dangalf

Unfortunately been diagnosed with cancer and looks like could be not long left. 
I have a wife and 3 kids.
Have done our wills and everything is due to go to my wife. However, by my reading currently my assets would seem to be outside the estate valuation.
We own a house jointly.
I have life insurance (although risk it expires before I die annoyingly).
I have a DC pension.
I have death in service benefit.
I have no savings and some credit card debts. 

Am I correct that these assets automatically pass to the named beneficiary rather than forming part of my estate. 

And if so does that mean the credit card debts would die with me?

Brie

Sorry to hear about the situation you're in.  I expect it's a worry for you as well as your family.

The DC pension, I believe, is outside of the estate evaluation.  Not sure about life insurance or death in service as neither of those is an asset per se until the obvious happens and they would then go normally to those named as beneficiaries.

Credit card debts might die with you but some card providers may expect the estate to pay.  But if you have no savings then there would be no way for the estate to pay.  This is assuming that anything that you and your wife might have in a joint account would go towards your funeral costs first before anything else.  

user1977

Why wouldn’t the debts be payable from the half of the house?

RAS

Let's talk about death in service benefit and life insurance?

Have you completed nomination forms for both these? Check with the providers as that's what helps place payments outside the estate.

Why do you think that the life insurance might expire? Was this a term insurance?

Voyager2002

user1977 said:

Why wouldn’t the debts be payable from the half of the house?

Depending on how the house is owned, probably the entire house becomes the property of the one surviving owner on the death of the OP. So it never forms part of the estate. The debts, however, are the responsibility of the estate.

Keep_pedalling

user1977 said:

Why wouldn’t the debts be payable from the half of the house?

If they own their house as joint tenants then the OPs estate will be insolvent (assuming the insurance policy falls outside the estate) as the home passes by survivorship to his wife. 

Emmia

How much are the credit card debts? If there's a death in service or life insurance pay out, that will be in cash which the wife could use to settle the debts without needing to call on the equity in the house. 

Assuming they need to be paid of course.

Savvy_Sue

RAS said:

Let's talk about death in service benefit and life insurance?

Have you completed nomination forms for both these? Check with the providers as that's what helps place payments outside the estate.

This, definitely!

Also, unlikely though it may be, does your will cover the eventuality of your wife dying before you? And do these nominations? I think I was able to do "DH, or if he dies before me then DS1, DS2, DS3". Definitely worth checking. 

And Lasting Power of Attorney - for both finance and Health - in case you are rendered incapable by illness before it finishes you off. At least talk about your wishes for health interventions! 

And just to say that if I were your grieving widow, and the credit card debts were at all affordable, I'd sooner just pay them and get the creditors off my back if I had a way to do so, than expend emotional energy struggling NOT to pay them. If they were NOT affordable, I'd get one of the good debt charities on-side to deal with them. 

GDB2222

Is the life policy held in a trust? 

It’s a very long shot, but some policies include a continuation option, which allows you to take out a replacement policy at normal rates.