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Original poster

Does your debt "die with you"?

26 replies

BearRabbitPants · 17/06/2019 21:23

Just that really, DH and I need to up our life insurance to cover our increased mortgage and second charge mortgage (used for home renovations). But my question is, if my DH were to die, would I, as his wife, be liable for his debt in his name only? (credit cards - also used for the home- we practically built a new house!) apologies if I'm very thick for not knowing this info but where neither of us have had debt before we honestly don't know & cant really find a definitive answer from google.
Thanks in advance!

OP posts:
TeenTimesTwo · 17/06/2019 21:26

Not an Expert.

Surely if he has any assets when he dies these would have to be used to pay the debts?
Debts are paid from the estate before distribution to the beneficiaries.

justbeniceplease · 17/06/2019 21:26

No, you won't be liable.

Ffsnosexallowed · 17/06/2019 21:28

You won't be liable, but his debts would be paid from his assets before you'd get them

AnchorDownDeepBreath · 17/06/2019 21:28

You won't be liable for debt only in his name, but his estate would be.

Mum4Fergus · 17/06/2019 21:28

I believe the debt needs to be repaid from the estate...so the executor of the will becomes responsible for ensuring things are paid.

Original poster
BearRabbitPants · 17/06/2019 21:29

So for example, our mortgage and second charge mortgage amounts to just under £300K, house is worth £600K, DH has £43K debt, would I have to sell the house to pay back his debt of £43K?

OP posts:
Original poster
BearRabbitPants · 17/06/2019 21:30

It's a mortgage owned jointly (equal shares) not tenants in common

OP posts:
RicStar · 17/06/2019 21:35

Yes that is correct the estate would have to pay the debts if there were no liquid assets you would need to extend the mortgage / sell etc.

AnnaMagnani · 17/06/2019 21:36

Debts have to be paid from the estate.

However if the estate doesn't cover the debts then they are written off.

And nothing held in joint names can be touched.

So for example - my parents had a joint account and a house in joint names. Only things in my Dad's names were the credit cards with £££s of debt, a car worth £100 and about £50 in Premium Bonds.

Even though my Mum was a secondary card holder for the credit cards, and there was a lot of cash in the joint account she couldn't be touched for the debt. And as Dad's whole estate in his own name amounted to £150, thousands of pounds of debt got written off.

We wished he'd known this would happen - we all had no idea - as he spent his last months worrying about my mum paying it off and scrimping and saving to get the balance down.

AnchorDownDeepBreath · 17/06/2019 21:45

Stepchange seems to suggest that jointly owned houses are considered as part of the estate; although I'm no expert and have no idea if they are right!

Maybe something to get legal advice.

Does your debt "die with you"?
Pipandmum · 17/06/2019 21:47

Is the debt secured on the house? As you are joint tenants then his share of the house will pass to you. As will the mortgage if you held that jointly. If there are any debts in both your names (like a joint credit card) you will take on the debt. But if it’s just a debt in his name then no, you are not responsible for it.
As always you and he should have a will and you can ask for clarification from the solicitor who makes it for you.

Original poster
BearRabbitPants · 17/06/2019 21:59

No the debt in his name is the credit cards. The joint debt is the mortgage and the second charge mortgage
I suppose that makes sense that the house would be sold to pay off his debt as half the house is in his name. Thank you for everyone's help.

OP posts:
Hollyhobbi · 17/06/2019 22:32

If ops husband died the mortgage protection would kick in and the mortgage would be paid off.

AnnaMagnani · 18/06/2019 06:48

No credit cards in the UK are in joint names - they all have a single card holder and then additional names on them. They aren't joint debt.

As above, our personal experience was the whole lot got written off - the house was a joint asset so couldn't be touched as it effectively didn't belong to my Dad, it also equally belonged to my Mum.

I remember being stunned and double checking with the card company person and she said she had this conversation often.

Original poster
BearRabbitPants · 18/06/2019 06:52

@AnnaMagnani so the debt that your dad had solely in his name wasn't paid off using the equity in your parents joint home? I thought I would have to sell the house to pay off his credit card debt?

OP posts:
Spanglyprincess1 · 18/06/2019 07:02

Is the debt secure or not? Short answer your not liable but they can sue the estate value for repayment. The house should be paid of by life insurance though. My own life insurances have a large excess over the mortgage amount so. Any debt would be paid off by the lump sum. Would your life insurances etc also do this? They might esp if you have other policies eg linked to. Savings accounts etc
You can check if your bothered with money advice etc regarding the specific types of cards etc he has.

Fairylea · 18/06/2019 07:08

When my mum died recently and left credit card debts we’ve had to use the proceeds of the sale of her house to pay off the credit cards. (The companies passed them to debt collection agencies who wrote to us as executors).

KooMoo · 18/06/2019 07:12

Wouldn’t your life insurance help pay debts off and the mortgage?

stucknoue · 18/06/2019 07:31

You won't be liable but his estate will be, thus his share of the house equity. Far better to pay off debts

Kazzyhoward · 18/06/2019 10:31

Stepchange seems to suggest that jointly owned houses are considered as part of the estate;

Won't that depend on whether it's owned as "joint tenants" or "tenants in common"?

Original poster
BearRabbitPants · 19/06/2019 10:37

@Spanglyprincess1 the debt is not secured against the house. There are 5 credit cards solely in DH name that he took out to purchase supplies for our house build. 3 of them have low amounts (think 1-2 grand) one has around 6 grand on it and one has 17 grand on it. We have joint debt of our mortgage (owned jointly NOT tenants in common) and our loan which IS secured against the house which is in both of our names.
We are upping DH life insurance to cover the loan that we are liable for jointly but we didn't know if we'd also need to increase it enough to also pay off the debt of the credit cards in his name? That was my initial question

OP posts:
DeadZed · 20/06/2019 21:53

No, I don't think you would be liable for the credit card debts. LAst year when FiL died, Mil inherited the house they owned jointly. His credit card debt was written off apart from a small portion which was paid from money left from his funeral plan and the sale of his car. The rest of the credit card debt was written off and mil owns the house fully now.

tomboytown · 21/06/2019 20:29

You will only have to repay if there’s enough funds in the estate.
The house will automatically come to you if you ensure you are Joint tenants.
This only works for husband/wife

Interestingly HMRC wrote off my late husbands taxes owed.

Passthecherrycoke · 21/06/2019 20:31

No you wouldn’t have to sell the house as it’s not solely his- it’s yours too and you live in it. You’ll possibly end up with a 3rd charge on his share of the equity though

Original poster
BearRabbitPants · 23/06/2019 07:22

Thank you everyone for your replies they have been very helpful ! Smile

OP posts:
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