My DP and I live in a property of which I have 80% ownership and he has 20%. This was drawn up legally in a declaration of trust and we are tenants in common.
We are not married. I have a will which stipulates if I die then my adult Dds will get my 80%. I know he will need to sell up as he will not have that sort of money to buy them out , if he wanted to stay in the property. I have not made provision in my will for him to stay there until he dies as he is a lot younger than me and my dds would have to wait years to benefit.
He is not an organised person at all, and sees no reason to make a will himself. He has no dc of his own, only a df and some nieces.
If he were to die first would I have to pay his 20% share to his df ( next of kin) to enable me to own the house completely?
I had not thought of taking out life insurance on each other. But how do we work out what cover we will each need as naturally as prices go up then our percentages will be worth more in monetary terms and we will need more cover to pay off each other’s families. ( if that makes sense).
May I ask are you also paying 80% of the mortgage repayments/interest payments?
You could probably get a decent insurance policy which would pay out 20% of the value of the house in the event that he dies first, to allow you to buy out his dp's share.
I very much doubt that there is any insurance policy that he could sign up to which would cough up 80% of the value of the house in the event that he needed to buy out your dd's share if you die first. That would be a quite astonishing policy and the premiums would be enormous.
He would be better off ploughing all his spare money into building up a decent deposit until he can buy a small flat in his sole name. Renting it out at first, in the event that you die before him, then he has somewhere to move to. You could perhaps write into the will that whichever of you survives the other should be allowed to occupy the shared home for a year before the legatees inherit?
Alternatively maybe you could buy this small additional property and hold it jointly (that is you both wholly own it so it does not form part of the estate on the first death but becomes the sole property of the survivor) - then it acts as your insurance policy too. If he dies first then the second property is sold to allow you to buy out his NoK and if you die first it is kept by him as his home when the current house is sold.