Wednesday, September 21, 2005
What will happen to our flat if my bankrupt hubby dies?
Question : MY 48-YEAR-OLD husband was declared a bankrupt after his business
failed.
I would like to know what will happen to our four-room flat if he dies.
What difference will it make if the flat is held under joint tenancy or
tenancy in common?
He bought the Home Protection Scheme (HPS) from the Central Provident
Fund Board, but subsequently reduced his share to 10 per cent as I am
the only one servicing the loan.
Will this insurance scheme settle the full outstanding loan if my
husband suffers a mishap of some kind?
Being a bankrupt, can he ever own any insurance policy? Can I insure
him using my money?
He did not insure himself before his business failed, and now, he would
like to know how can he protect himself against death or illnesses.
What kind of policy can he buy then? Will I be the beneficiary or the
creditors if anything happens to him?
Answer : THE most important difference between a joint tenancy and a tenancy
in common is the right of survivorship.
Generally, in the case of a joint tenancy, upon your husband's death,
his share of the flat would vest automatically in you, and could not be
disposed of in accordance with a will or otherwise.
If, however, you and your husband were tenants in common, his share of
the flat would not automatically vest in you upon his death, but would
be distributed according to the instructions laid out in his will or,
in the absence of a will, the provisions of the Intestate Succession Act.
If the property is an HDB flat, then provided that both your husband
and yourself are Singaporeans, your husband's share of the flat would not
be available to creditors upon his death.
If you and your husband own the flat as joint tenants, his share would
automatically vest in you.
Otherwise, his share of the flat would be dealt with in accordance with
either his will or the Intestate Succession Act, as the case might be.
As your husband is covered for only 10 per cent of the outstanding loan
amount on your flat, in the event of his death or disability, HPS would
pay out only 10 per cent of the outstanding loan amount.
You would still be responsible for servicing the remaining 90 per cent
of the outstanding amount of your housing loan.
Generally, there is no prohibition on your husband buying or owning
insurance policies.
However, if he is continuing to pay insurance premiums while he is a
bankrupt, he should keep the Official Assignee informed of such
payments.
In addition, if the insurance policy expressly lists someone other than
your husband as a beneficiary, any money payable under this policy does
not form part of your husband's estate and is thus not available to
creditors.
However, if no specific beneficiary is indicated, any payout under the
policy would form part of your husband's estate and might then be
distributed among his creditors.
You should note that the same applies to all monies received by your
husband or his estate by way of insurance, regardless of who actually
provides the money for the insurance premiums.
Adrian Wee
Lawyer
Harry Elias Partnership
failed.
I would like to know what will happen to our four-room flat if he dies.
What difference will it make if the flat is held under joint tenancy or
tenancy in common?
He bought the Home Protection Scheme (HPS) from the Central Provident
Fund Board, but subsequently reduced his share to 10 per cent as I am
the only one servicing the loan.
Will this insurance scheme settle the full outstanding loan if my
husband suffers a mishap of some kind?
Being a bankrupt, can he ever own any insurance policy? Can I insure
him using my money?
He did not insure himself before his business failed, and now, he would
like to know how can he protect himself against death or illnesses.
What kind of policy can he buy then? Will I be the beneficiary or the
creditors if anything happens to him?
Answer : THE most important difference between a joint tenancy and a tenancy
in common is the right of survivorship.
Generally, in the case of a joint tenancy, upon your husband's death,
his share of the flat would vest automatically in you, and could not be
disposed of in accordance with a will or otherwise.
If, however, you and your husband were tenants in common, his share of
the flat would not automatically vest in you upon his death, but would
be distributed according to the instructions laid out in his will or,
in the absence of a will, the provisions of the Intestate Succession Act.
If the property is an HDB flat, then provided that both your husband
and yourself are Singaporeans, your husband's share of the flat would not
be available to creditors upon his death.
If you and your husband own the flat as joint tenants, his share would
automatically vest in you.
Otherwise, his share of the flat would be dealt with in accordance with
either his will or the Intestate Succession Act, as the case might be.
As your husband is covered for only 10 per cent of the outstanding loan
amount on your flat, in the event of his death or disability, HPS would
pay out only 10 per cent of the outstanding loan amount.
You would still be responsible for servicing the remaining 90 per cent
of the outstanding amount of your housing loan.
Generally, there is no prohibition on your husband buying or owning
insurance policies.
However, if he is continuing to pay insurance premiums while he is a
bankrupt, he should keep the Official Assignee informed of such
payments.
In addition, if the insurance policy expressly lists someone other than
your husband as a beneficiary, any money payable under this policy does
not form part of your husband's estate and is thus not available to
creditors.
However, if no specific beneficiary is indicated, any payout under the
policy would form part of your husband's estate and might then be
distributed among his creditors.
You should note that the same applies to all monies received by your
husband or his estate by way of insurance, regardless of who actually
provides the money for the insurance premiums.
Adrian Wee
Lawyer
Harry Elias Partnership
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// posted by Shajahan @ 10:34 AM 