Wills,homes,life insurance,etc questions

debbiep_gwNovember 19, 2008

Hi,I have a few concerns and would like to ask a few questions.We bought and sold a house in 2007.The house is in my husbands name only.We used a Va loan to get the house.At this time we don't have a will but plan to get one soon.We have only a small amount of life insurance,not enough to pay it off should he die of natural causes.We do have accidental death life insurance that is enough to cover it should he die accidently.I don't believe he can get more life insurance without it costing a lot as he has a few of the conditions that are always on the forms that they ask do you have.I have no job outside of the home and have no training for a job either.I only worked outside the home for a year/half in the last 33 years and then it was in a fast food resturant.I'm 50 and hes 53 and while our health is not to bad I have started thinking about the future should he go before me.I guess my question is can you leave a house to your spouse that is in your name only and not paid for in your will?If I'm even able to make the house payment will the house loan stay in the husbands name,I'm assuming the banks aren't going to loan a middle age person with no job and only a small amount of credit to get a loan in their name right?By the way the home won't be payed for in our lifetime I'm guessing.Its a 30 year mortage.Theres no way to pay more on the loan either.We live on Va disability and a very low paying state job.We are in the low income bracket,we live frugally.We have what we need though!I'm thinking I'm doomed should he go before me.

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If someone dies without a will, unless it is contested by, say, a child from a previous marriage, everything normally goes to the wife or husband regardless of whose name things are in (unless they're in a third party's name, in which case you'll need a lawyer to sort it out). The title should transfer to you too, though that would need to be done by the bank or whoever holds the loan/mtge, and a new version of it given to you. Millions of people die all the time with unpaid mtge's (and little or no insce), and their heirs still inherit, but if you then cannot continue paying, then you'd either sell the house, forfeit it to the bank, or ... and this is the part you should know about (should have been told when the papers were first drawn up) keep the house under the terms of the "Mortgage Insurance" which is offered to all buyers for just such events. IF your husband did not buy that insce., it may not be too late to do so, and I'd speak to the bank about getting it in place.

    Bookmark   November 19, 2008 at 4:17PM
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Thank you Lucy.That is helpful knowledge for me..

    Bookmark   November 20, 2008 at 10:29AM
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You're only 50, have you thought about taking classes and getting a job now, before something happens to your DH?

    Bookmark   November 20, 2008 at 11:40AM
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Other things being equal, many of us prefer to get life, and possibly also disability insurance, related to paying a mortgage off on our own as a separate contract.

The mortgage insurance's beneficiary is the bank, not the mortgage holder, who, though paying the premium, has no flexibility in case of need.

The amount of coverage decreases over the years, as it covers only the portion of the mortgage remaining unpaid, while usually for a similar cost (sometimes lower), a mortgagee can get regular term life insurance for the full amount originally owing on the mortgage ... and it usually stays at that level throughout, if they so choose. Premium rate may increase at the end of the agreed term, if it is shorter than the years that the mortgage is to run.

If premium rates are comparable, if the mortgagee dies the amount of benefit making up the difference between the original amount owing and the amount remaining owing at the time (which they would likely pay to the bank to retire the mortgage) would be really helpful to the survivors.

It's wise to carry disability insurance, as well, as there's a far greater possibility of long-term disability (about 4 times) than of death during one's years of employment ... lacking employment income, how does one pay mortgage should s/he become disabled?

Lacking a will ... no problem ... as long as the owner of the family's assets ... remains alive.

Suppose someone were to come to your house tomorrow and, reading from a clipboard, ask you what your family owns, then say that this and that was to be done with each of the various pArts of it.

As you listened, you'd likely object strongly, sputteringly saying, "But ... but ... we don't want our things and money to be dealt with that way!!".

That person would just be telling you what your state's rules are, that would come into effect ...

... if the owner of the assets dies without a will!!

So - get the will in place ... before you die.

Can't do it after!!

ole joyful

P.S. Confession time. I'm close to 80 ... and I don't got one, either.


My kids'd get the stuff ... but they'd get a lot less, after all of those admin. costs.

And they'd get the stuff later.

And the charities'd get ... nothing!

o j

    Bookmark   November 21, 2008 at 6:49AM
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Is there any reason that your husband cannot have your name added to the deed? It's a simple procedure in most states.

But do get a will in place ASAP. A simple will shouldn't cost much at all.

    Bookmark   November 30, 2008 at 9:25PM
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