Hi Reader 👋

This week's edition of Law in a Coffeeshop is Sponsored by BKD AUDITORS. (More on them at the end.)

So, What happens to your Home Loan when you Die?!

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There are so many variables, but let's take a quick look at a 3 Common Misconceptions!

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Common Misconception 1:

• Your debt won't disappear when you die.
• It goes nowhere. Your creditors, and the bank, will want their money.
• Your deceased estate is now responsible for that debt - in this case for that home loan.

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Common Misconception 2:

• Your spouse can just take over the payment of the monthly payments - FALSE.
• Technically, it is possible to do it in practice, but it will leave you with lots of problems going forward.
• The ownership of the property must be transferred and the home loan will have to be cancelled.
• Do you have enough cash to pay out the home loan?

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Common Misconception 3:

• Thinking that there are always life insurance to cover the home loan.
• Make sure that your insurance/life insurance is set up in such a way that it can be used to cover the home loan. You want to give the property to your spouse without any debt.
• Make sure that your insurance/life insurance is enough to cover ALL your debt in your estate AND enough to replace your salary so that you can provide for your family after your death.

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If you want to discuss estate planning further, you can book an online consultation on my website here:

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Thanks for reading!

Have a great week!

~Francois ☕

Sponsored by BKD AUDITORS

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BKD Auditors is a multidisciplinary audit/accounting/tax/advisory firm. They seek to add value to their clients through building long-term relationships allowing them to design tailored solutions while giving them the peace of mind that their financial compliance needs are taken care of.

Use this link to contact them now: https://www.bkdo.co.za/​

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Click here to subscribe: https://francois-vorster.ck.page​

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