Letters Of Administration

[bednobs]

hi, if you own a property as a "partnership" (joint tenants) does any part of it form part of the person who dies first estate? can creditors of the first person to die "take" any of the equity in the house? (insolvent estate)

[woofgang]

https://www.gov.uk/joint-property-ownership/overview

[Peter Pedant]

I am very sorry you have got involved in winding up an insolvent estate.

joint tenants come in two flavours - joint and tenants in common
and it depends on what the documents say
( you knew I was gonna say that didnt you ? )

before death
goggle joint tenancy and bankruptcy
and it looks as tho the trustee in bankruptcy will try to get his sticky fingers on 50%

and after death
google insolvent estate joint tenancy
and you get this
"The deceased debtor's interest in property owned under a joint tenancy will pass automatically to the other joint owner or owners by right of survivorship, and will never become part of the insolvency estate."

which kinda surprises me but Barmaid may be along and tell us what is what

[bednobs]

Thanks. What bout if it pays out on the mortgage, is that policy then part of the estate?

[Peter Pedant]

blimey this is a bit technical

Barmaid - where are you

Insurance policies come in two flavours
they can be previously written in trust when they dont form part of the estate

or sort of normal when i think they do [form part of the estate]

These really are such technical questions that you should be paying a lawter for the correct advice

but first have a look at this
https://www.insolvencydirect.bis.gov.uk/TechnicalManual/Ch49-60/Chapter%2054/Part4/Part%204.htm#54.67

it will keep you off the streets for months .....

and after you have....
the answer to your question
// can creditors of the first person to die "take" any of the equity in the house? //

is that the rule of survivorship trumps bankruptcy for joint property
BUT the dissatisfied creditors CAN make an application to the court for a variation of this rule