I own a house. The mortgage is £320k. Its current value is about £350k. I have life insurace to pay off the mortgage if I die but currently this is left in trust to a family member not actually to the mortage IFSWIM?
However how does it work? If I drop dead tomorrow, what happens to the mortage payments, are they frozen? do they keep adding on? Do I need to allocate the life insurace to pay off the mortage and then does it happen straight away and then my house is the estate rather than just the equity with the life insurance fund being controlled by the family member?
If the moneys gone to my mum, can she buy the house from the mortage company, but I assume then she pays market value, rather than just clear the mortage?
I need to sort my will, but it all seems really confusing!
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What happens to house when I die (trying to work out my will)
5 replies
fallenninjastrikesback · 02/03/2012 11:52
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