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Buachaill, Barrister
Category: Law
Satisfied Customers: 10977
Experience:  Barrister 17 years experience
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If the trustees of an Employee Benefits Trust, where loans

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If the trustees of an Employee Benefits Trust, where loans have been made via the trust to beneficiaries, call in the loan will they be able to get their hands on property that is in spouses name only (property title changed from joint to spouse only) if the loan can't be paid back?
1. IN law, one spouse has no liability for the other spouse's debts. So here, if a loan has been made to a beneficiary, the spouse of the beneficiary is not liable to pay back any monies they owe. This means that if a house is owned jointly by two spouses, only the half share in the house owned by the spouse who owes the money is available to discharge the loan made to one spouse. If the spouse to whom the loan has been made no longer has any interest in the house, owing to the ownership having been changed from joint ownership to the sole ownership of the other spouse, then none of the equity in the house will be available to discharge the loan made. 2. So, if the loan from the Employee Benefits Trust is not paid back by a beneficiary, who no longer has any ownership in a previously jointly owned property, then none of the assets of the spouse of the beneficiary (such as the previously jointly owned property) will be available to pay back the Trust.
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