My debt on snuffing it.

[ScouseGit]

Hiya,
I am 60 yrs old & have just taken out a substantial HP agreement on a motor vehicle, payments of which will be for 7 years or so.
If I die before the payments are completed, will my wife be liable?
It IS, a joint account, but my wife signed nothing, and the details of the debt are in my name only.

Will it be wise to change the account to my own name, in any case?
Cheers,
ScouseGit.

[Ethel]

If you die with debts, the debts must be paid out of your estate before being distributed either in accordance with your will or intestacy rules.
The only time your debts die with you is if you leave absolutely nothing.
The car will be an asset, for example, and your house, if you own it, either on your own or jointly with your wife.

[ScouseGit]

Thank you for taking the trouble to write, Ethel, but I'd be grateful if someone could answer my 2 questions.

Assuming the motor is my only asset:

Is she liable?
Should I change the account now?

[kira000]

It could be an idea to change the account, yes. This is because with joint accounts it is very hard to prove whose money it is, so if there is money in the account if and when you pop off, it could be considered to be part of your estate and used to pay off your debts.
In the best case scenario, they might freeze the account while the investigate whether they can use any or all of it as your estate to pay debts, which could leave your wife without access to money in the account. Even if they decide to unfreeze the account and leave the money alone, it can take months to do it, so your wife might suffer in the interim.

[ScouseGit]

Many thanks Kira, I'll change it straight away..............before I "Pop off"...........Thanks again.

[bednobs]

the problem witht that is that when you die (hopefully not for a long time) your wife will not have any access to that account till your estate is sorted,

[Ethel]

As it is a hire purchase agreement and not a personal loan, the car is owned by the HP company until the last payment is made.

If you die before one third of the total payments have been made, they will simply repossess the car. If you have made more payments than that, they will go to court to repossess the car.

It would be different if it were a personal loan.

It would be unusual for a person to die without any assets at all - a watch and clothes, at least.

[ScouseGit]

A watch & clothes can hardly be construed as assets.