How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask tdlawyer Your Own Question

tdlawyer
tdlawyer, Lawyer
Category: Family Law
Satisfied Customers: 1096
Experience:  Lawyer with 9 years experience of family law issues.
73598664
Type Your Family Law Question Here...
tdlawyer is online now

My parents want to take out a life insurance policy on my wife.

Resolved Question:

My parents want to take out a life insurance policy on my wife. She legally owns the house that they are renting from her and want to take out the policy so that they get the mortgage paid on her death. However, as they are not financially dependent on my wife, is this legal?
Submitted: 2 years ago.
Category: Family Law
Expert:  tdlawyer replied 2 years ago.

tdlawyer :

Hi thanks for your question. My name isXXXXX can assist with this.

tdlawyer :

Yes, this should be possible. In a way, they do seem to be financially dependant on her in the sense that unless she owns the home, they may lose their ability to reside there.

tdlawyer :

You're right to recognise that there needs to be an "insurance interest" but there does appear to be such an interest in this case.

Customer: In fact, she just got the mortgage for them in her name as they were unable to get one and they make the repayments through her bank account. Her will, however, leaves the property to me in the instance of her death. Therefore, are they financially dependant on her?
tdlawyer :

Can you not just do this another way and avoid the issues at all? How about if your wife takes out a life policy, then leaves the benefit of that in her will to your parents?

tdlawyer :

Because I do see your point and the last thing you want is an argument over this at a later stage.

Customer: I completely agree. The reason for the question is that we find it very disturbing that they want to do this and the fact that they are officially only tenants would mean no financial dependence. Otherwise couldn't any tenant take out life insurance on their landlord?
tdlawyer :

Yes, I see your point. I had thought the position was slightly different when you made the initial question, so I do agree with you.

Customer: So you are saying that they have no basis for taking out a life policy on her?
tdlawyer :

Yes, I think that's right. I don't see the insurable interest in the circumstances.

tdlawyer :

Essentially, they're just tenants, are they not? Even if they owed her money, her death doesn't change that, as her estate simply becomes entitled to the debt. Its not like them passing and needing the cash sum to pay off their debts.

Customer: Many thanks indeed for your help. I will, of course, give you an excellent rating.
tdlawyer :

Thank you very much :)

tdlawyer, Lawyer
Category: Family Law
Satisfied Customers: 1096
Experience: Lawyer with 9 years experience of family law issues.
tdlawyer and other Family Law Specialists are ready to help you

What Customers are Saying:

 
 
 
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
< Previous | Next >
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
  • A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks! Rick
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
 
 
 

Meet The Experts:

 
 
 
  • Kasare

    Kasare

    Solicitor

    Satisfied Customers:

    204
    Solicitor, 10 yrs plus experience in civil litigation, employment and family law
< Previous | Next >
  • http://ww2.justanswer.com/uploads/KA/Kasare/kasare.64x64.jpg Kasare's Avatar

    Kasare

    Solicitor

    Satisfied Customers:

    204
    Solicitor, 10 yrs plus experience in civil litigation, employment and family law
  • http://ww2.justanswer.com/uploads/TG/TGraham12/2012-7-17_81212_bigstockBusinessHandshake508163.64x64.jpg Thomas's Avatar

    Thomas

    Solicitor

    Satisfied Customers:

    160
    UK solicitor
  • http://ww2.justanswer.com/uploads/JO/jojobi/2013-3-19_0265_maxlowryphoto.64x64.jpg Max Lowry's Avatar

    Max Lowry

    Solicitor

    Satisfied Customers:

    7
    LLB, 10 years post qualification experience
  • http://ww2.justanswer.com/uploads/OS/osh/2015-7-7_19268_gettyimagesb.64x64.jpg Joshua's Avatar

    Joshua

    Lawyer

    Satisfied Customers:

    340
    LL.B (Hons), Higher Prof. Dip. Law & Practice
  • http://ww2.justanswer.com/uploads/GL/Glossolicitor/2013-5-14_214834_TWMParkinsonWright.64x64.jpg Glos solicitor's Avatar

    Glos solicitor

    Family Solicitor

    Satisfied Customers:

    2
    10 years experience in all areas of family law, now specialising in cases involving social services and children
  • http://ww2.justanswer.com/uploads/CL/clairep80/2013-8-25_191218_dreamstimexs267279822nd.64x64.jpg Clare's Avatar

    Clare

    Family Solicitor

    Satisfied Customers:

    4598
    I have been a solicitor in High Street Practise since 1985 and have specialised in Family Law for the last 10 years
  • http://ww2.justanswer.com/uploads/HH/hhlaw/2015-12-8_22495_unnamedlanczosbicubic.64x64.jpg Harris's Avatar

    Harris

    Family Law Expert

    Satisfied Customers:

    1064
    Family Law - Specialist in Divorce, Financial Relief and Children Matters