Dying intestate

[inthethickofit19]

We are hoping to get wills into place soon enough but does anyone know what would happen if a spouse died and they had debt in their sole name which was worth more than the equity in a joint property?

Would the surviving spouse be forced to sell up to release the deceased's share in order to pay off deceased's debt? What would happen with any outstanding debt at that point?

Check out Gov.uk and Martin Lewis the money man. Money Advice Service. Think its different rules different parts of UK. Generally, all debts the person had at time of death in their name have to paid out from their estate (a will is irrelevant at this point). All monies from their bank, life insurances etc have to go towards paying off their debt. Depending on the total amount HMRC may be involved if the amount is over a certain amount maybe £250, 000 I can't remember.

The assets of the deceased are used to pay off the deceased's debts
Any balance dies with the deceased
So yes if there is a joint asset it would have to be sold to pay off the debt,or the survivor would have to pay off the debt from own funds to save the house being sold