Settling debts after death

[Ryder]

My wife will be the sole owner of our house when I die. Will she have t
sell the house to pay off my debts


--
Ryder

[Fredxxx]

My wife will be the sole owner of our house when I die. Will she have to
sell the house to pay off my debts?

Yes if the house is currently in your name or owned as joint tenants.

If currently tenants in common then no.

[David Woolley]

Post by Fredxxx
Yes if the house is currently in your name or owned as joint tenants.
If currently tenants in common then no.

Tenants in common is a concept that doesn't exist across the whole UK,
only in England and Wales. The OP doesn't say that that they are
domiciled in one of those countries.

I'm not convinced that the answer is correct. For a start, if the there
is a tenants in common arrangement, the will will need to indicate who
gets your share of the house, and their legacy will be reduced by the
amount of your debt. I'm not sure whether they would be forced to sell
their share (the part obtained from you if they are the other tenant),
or whether it would always possible to make a charge on the property.

My feeling is that, if you are at risk of this happening, this is one of
those times where internet forum/newsgroup advice is not enough. At the
very least, talk to a debt counselling charity, maybe start with the CAB.

(If I read
<http://www.franciswilksandjones.co.uk/site/fwjsays/component_articles/component_articles_AR_In_Winter_2013.html>
correctly, the ownership arrangement that would be desirable would be
"joint tenancy". Attempts to change the tenancy when the likelihood of
default was known would probably be treated as void, unless done by
buying out the share at full market value.)

[Ryder]

On 06/01/2017 21:49, Ryder wrote:-
My wife will be the sole owner of our house when I die. Will she hav
to
sell the house to pay off my debts?-
Yes if the house is currently in your name or owned as joint tenants.
If currently tenants in common then no.

Thanks Fred that's reassuring. But as I have no savings or assets othe
than the house what happens to the debts after my death as hopefully m
wife will still be alive


--
Ryder

[Fredxxx]

On 06/01/2017 21:49, Ryder wrote:-
My wife will be the sole owner of our house when I die. Will she have to
sell the house to pay off my debts?-
Yes if the house is currently in your name or owned as joint tenants.
If currently tenants in common then no.

Thanks Fred that's reassuring. But as I have no savings or assets other
than the house what happens to the debts after my death as hopefully my
wife will still be alive?

Can you confirm you live in England and Wales as another poster has
intimated the situation is a little different in Scotland?

Tenants in common means the house is all hers as well as all yours. The
house will be just hers after your death. The debt will be offset to
your estate which you indicate is nothing.

As long as she hasn't signed any guarantees or allowed the house to be
used as surety all should be good.

What is interesting is that should she die before you, you're still
responsible for her debts.

[David Woolley]

Post by Fredxxx
Tenants in common means the house is all hers as well as all yours. The

That's joint tenants, not tenants in common.

[Fredxxx]

Post by David Woolley

Post by Fredxxx
Tenants in common means the house is all hers as well as all yours. The

That's joint tenants, not tenants in common.

Sorry, yes your right. Easy to get them wrong way round.

[Michael Ejercito]

Post by Fredxxx

On 06/01/2017 21:49, Ryder wrote:-
My wife will be the sole owner of our house when I die. Will she have to
sell the house to pay off my debts?-
Yes if the house is currently in your name or owned as joint tenants.
If currently tenants in common then no.

Thanks Fred that's reassuring. But as I have no savings or assets other
than the house what happens to the debts after my death as hopefully my
wife will still be alive?

Can you confirm you live in England and Wales as another poster has
intimated the situation is a little different in Scotland?
Tenants in common means the house is all hers as well as all yours. The
house will be just hers after your death. The debt will be offset to
your estate which you indicate is nothing.
As long as she hasn't signed any guarantees or allowed the house to be
used as surety all should be good.
What is interesting is that should she die before you, you're still
responsible for her debts.

Why would this be so? Isn't it the case that spouses are never
responsible for the other spouse's debts?
https://www.bainesandernst.co.uk/help-and-advice/personal-finance/responsible-marriage-debts/


Michael