Writing my Will - cant bequest house because of charging order?

[chiefmegawatty]

I have started writing my Will and intend to leave my house to my son.

However, I have discovered a possible snag.

I understand that due to having a Charge Order against my property I can't

leave it to my son.

I am of the impression that my house must be sold after my death to pay

the Charge Order which prevents my son from inheriting the property.

Is this correct?

[dx100uk]

No

 

DX

[chiefmegawatty]

OK thanks DX. I therefore assume that my son can inherit the house with the charge order still attached.

That's a great relief.

I did read somewhere that the house couldn't change ownership without the charge order being paid off.

Maybe that was referring to selling the house rather than inheriting the house.

From your advice, it looks as if my creditor may have to wait many decades to recover the debt

especially if my son leaves the house my grand son.

[Ganymede]

What is the wording of the Charging Order?

[chiefmegawatty]

I will have a read and report back.

[chiefmegawatty]

The final charging order from the county court says that I stand charged with a payment of the sum of £1,633.70

which is the amount now owing under a judgement given on 28 October 2010 by Northampton County Court on claim No ........

, together with any further interset becoming due and £264 the costs of the application.

 

The costs will be added to the judgement debt.

The address of the land or charged property is xxxxxxx, the title to which is registered at HM Land Registry under Title No: .....

[Ganymede]

Remove that claim number and title number.

[dx100uk]

done

 

 

dx

[chiefmegawatty]

Why?

[dx100uk]

http://www.consumeractiongroup.co.uk/forum/showthread.php?440881-Bristol-and-Wessex-Water-amp-Charging-order-they-say-they-want-paying-now..

[Ganymede]

http://www.consumeractiongroup.co.uk/forum/showthread.php?440881-Bristol-and-Wessex-Water-amp-Charging-order-they-say-they-want-paying-now..

 

Oh yeah...

[chiefmegawatty]

DX why have you highlighted that previous thread?

[Ganymede]

DX why have you highlighted that previous thread?

 

Background.

[Mr.P]

I am of the impression that my house must be sold after my death to pay

the Charge Order which prevents my son from inheriting the property.

Is this correct?

 

I would have thought that the executors would have the option to clear the debt from liquidated assets (including selling the property), or allowing the beneficiary to pay off the debt in order to retain the property.

 

I do hope you are consulting a solicitor experienced in drafting wills - They should be able to advise on this type of issue and ensure the correct wording is used to ensure your son's inheritance is protected.

[citizenB]

I have amended the thread title, as the original implied that you couldn't exit the house !!

[Andyorch]

Thread moved to the appropriate forum.

 

Andy

[steampowered]

In principle, you can still leave a house subject to a charging order to your son. A property which is subject to a charging order still belongs to you and is still an asset.

 

However there is a snag. The executor if your estate is required to pay your creditors before he can distribute assets to the persons you have named as beneficiaries (i.e. your son).

 

If your estate has other assets, such as money in a bank account, the executor would normally use those to pay your creditors. The charging order would then be removed.

 

If your estate does not have enough other assets to pay the creditor, then the house might need to be sold. In this situation the creditor would be paid the amount owed to it, and the remainder would go to your son. Alternatively, if your son would rather have the house rather than the money from selling it, he could pay off the creditor himself and the charging order would then be removed.