Does the debt pass onto family after death?

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meepman

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What happens when you die and have a large debt still owing to the banks?

Does it get passed onto spouse or children or is it taken from your pension etc?
 
Your assets are sold and your debts are paid off from the proceeds.

Your debts do not pass onto your spouse unless she is jointly liable as she would be in a mortgage.

If your wife has an entitlement to a pension as your survivor, then it would not be affected.

However, if you have a pension fund such as an Approved Retirement Fund or a Self Administered Fund, that would pass to the estate first.
 
So firstly, if the mortgage was in joint names the spouse would then have to pay the mortgage. What if the spouse cannot afford to pay?

And secondly ,do you mean the deceased's private pension will be used to pay off the debts?
 
Brendan said:
Your debts do not pass onto your spouse unless she is jointly liable as she would be in a mortgage.
Click to expand...
Why? She would only be jointly liable if the mortgage is in joint names. If may be in the husbands name only.
 
So firstly, if the mortgage was in joint names the spouse would then have to pay the mortgage. What if the spouse cannot afford to pay?

And secondly ,do you mean the deceased's private pension will be used to pay off the debts?
 
OP is this a hypothetical question?

Insurance policies may pay balance of mortgage in certain circs................
 
It is at the moment, just concerned that if I keep paying my private pension and if when I die there is still a substantial amount of debt (due to neg eq) owned on the home that the pension money will be used to pay the shortfall.
 
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