Death and Debt

FGRL

FGRL

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What a morbid title right??

Ok, so I am married and my antenuptial contract states “Out of community of property with accrual” what happens to my R250k revolving loan debt and my R100k vehicle finance debt should I die?

When I say I have nothing to my name, I really do mean it..... no savings, no life insurance, no funeral policy etc etc etc (but I do have a whopping R50k retirement annuity).

I know i should go to a Financial advisor but really don’t want to so instead I wanted to abuse the wealth of knowledge that lies on My BB!
 
Someone has to pay it. if you are insolvent all your property will be sold on auction to cover debt.
 
Magnum said:
Someone has to pay it. if you are insolvent all your property will be sold on auction to cover debt.
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Oh, I have no property either.....I have nothing (seriously). Must i assume the RA payout would go to cover the debt?
 
or it get forfeit to the state in case there is no will
 
Pretty sure most of the debt you mentioned have some sort of policy attached in case of death that covers it.

Afaik all types of loans must have a form of death coverage to take care of the outstanding loan at least since the new credit act any type of credit/loan ive ever taken on have had compulsory coverage included or if you had your own coverage you could attach it to the terms.

I would love to know how you got a revolving R250k loan and R50k car financing when you own absolutely nothing, what sort of surety did you offer to creditors to get approved for any of this ? with R250k revolving loan you would need to have at least R40-50K free after taxes/deductions every month but based on what you wrote it does not seem like you are a high income earner so what gives ?
 
John Tempus said:
Pretty sure most of the debt you mentioned have some sort of policy attached in case of death that covers it.

Afaik all types of loans must have a form of death coverage to take care of the outstanding loan at least since the new credit act any type of credit/loan ive ever taken on have had compulsory coverage included or if you had your own coverage you could attach it to the terms.

I would love to know how you got a revolving R250k loan and R50k car financing when you own absolutely nothing, what sort of surety did you offer to creditors to get approved for any of this ? with R250k revolving loan you would need to have at least R40-50K free after taxes/deductions every month but based on what you wrote it does not seem like you are a high income earner so what gives ?
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Both the vehicle finance and revolving loan offered the “loan insurance” at a fee (for death, disability or retrenchment) and I declined at the time. So I have no such policies in place, I can add them now apparently, but it would be quite a cost.

I get out R35k after taxes and rent in the most expensive city of South Africa (CPT) so not willing to buy a home in this ridiculously priced dump of a place. I have absolutely no other debt to my name, no store cards, no credit cards, etc. etc and prior 2017 I thought investments, savings and fixed assets were for the birds.....

Now I’m over 40, living month to month in an overpriced rental with no savings and just found out I was declined for Life Insurance due to my health - all very positive as you can tell!

The R250k loan and R100k vehicle finance is a tiny drop against my monthly salary - the rest is wasted on rent and utilities, vehicle insurance, fibre, DSTV and medical bills.

There’s my life story for ya!
 
MrsGreen said:
Both the vehicle finance and revolving loan offered the “loan insurance” at a fee (for death, disability or retrenchment) and I declined at the time. So I have no such policies in place, I can add them now apparently, but it would be quite a cost.

I get out R35k after taxes and rent in the most expensive city of South Africa (CPT) so not willing to buy a home in this ridiculously priced dump of a place. I have absolutely no other debt to my name, no store cards, no credit cards, etc. etc and prior 2017 I thought investments, savings and fixed assets were for the birds.....

Now I’m over 40, living month to month in an overpriced rental with no savings and just found out I was declined for Life Insurance due to my health - all very positive as you can tell!

The R250k loan and R100k vehicle finance is a tiny drop against my monthly salary - the rest is wasted on rent and utilities, vehicle insurance, fibre, DSTV and medical bills.

There’s my life story for ya!
Click to expand...

You should take another look at death coverage on the outstanding loans. It is mandatory with the new credit act so I assume you have had that open since before then ? If you got this credit after the new credit act they could not allow you to sign for any of that credit without providing your own coverage or signing their own coverage.

I am also in CPT and without debt ie. NO DEBT, in your case I would actually try and settle the debt as soon as possible with whatever you can budget each month and get out of it. Better to have certainty about your finances and future in case you die than to hog your extra monthly income which doesn't really mean much if you are still over R300k in actual debt.
 
MrsGreen said:
Both the vehicle finance and revolving loan offered the “loan insurance” at a fee (for death, disability or retrenchment) and I declined at the time. So I have no such policies in place, I can add them now apparently, but it would be quite a cost.

I get out R35k after taxes and rent in the most expensive city of South Africa (CPT) so not willing to buy a home in this ridiculously priced dump of a place. I have absolutely no other debt to my name, no store cards, no credit cards, etc. etc and prior 2017 I thought investments, savings and fixed assets were for the birds.....

Now I’m over 40, living month to month in an overpriced rental with no savings and just found out I was declined for Life Insurance due to my health - all very positive as you can tell!

The R250k loan and R100k vehicle finance is a tiny drop against my monthly salary - the rest is wasted on rent and utilities, vehicle insurance, fibre, DSTV and medical bills.

There’s my life story for ya!
Click to expand...
Aren't you just a positive ray of sunshine.
 
MrsGreen said:
What a morbid title right??

Ok, so I am married and my antenuptial contract states “Out of community of property with accrual” what happens to my R250k revolving loan debt and my R100k vehicle finance debt should I die?

When I say I have nothing to my name, I really do mean it..... no savings, no life insurance, no funeral policy etc etc etc (but I do have a whopping R50k retirement annuity).

I know i should go to a Financial advisor but really don’t want to so instead I wanted to abuse the wealth of knowledge that lies on My BB!
Click to expand...
The way I understand it, nothing. Your debt dies with you. You spous has nothing to worry about unless it is a shared asset.

Get the person that has drawn up the contract clarify it for you.
 
Google says:

Benefits of an Antenuptial Contract

  • If either party is declared insolvent, the other spouse is protected from the insolvent spouse’s creditors;
  • An Antenuptial Contract can be drafted in such a way so as to cater for your unique and individual circumstance.
  • The respective spouses will not be held liable for any debt that the other spouse might have incurred prior to the marriage;
  • Spouses will not be held liable for any debt that the other spouse may incur during the marriage;
  • Assets that, for sentimental or financial reasons, the spouses do not want to form part of a joint estate can remain separate;
  • Spouses will not need to obtain each others consent when dealing with their own property.
  • Antenuptial contracts remove the risk in regard to all the spouses combined assets, should one of the spouses undertake a business venture, allowing for the protection of assets from creditors;
  • Each spouse is able to retain his or her individual financial identity.
Concluding an Antenuptial with Accrual is, by and large, the fairest of the matrimonial regimes.
 
MrsGreen said:
Both the vehicle finance and revolving loan offered the “loan insurance” at a fee (for death, disability or retrenchment) and I declined at the time. So I have no such policies in place, I can add them now apparently, but it would be quite a cost.

I get out R35k after taxes and rent in the most expensive city of South Africa (CPT) so not willing to buy a home in this ridiculously priced dump of a place. I have absolutely no other debt to my name, no store cards, no credit cards, etc. etc and prior 2017 I thought investments, savings and fixed assets were for the birds.....

Now I’m over 40, living month to month in an overpriced rental with no savings and just found out I was declined for Life Insurance due to my health - all very positive as you can tell!

The R250k loan and R100k vehicle finance is a tiny drop against my monthly salary - the rest is wasted on rent and utilities, vehicle insurance, fibre, DSTV and medical bills.

There’s my life story for ya!
Click to expand...
But at least you still have that nice cool couch of yours? :p

Cape Town is stupid expensive. No argument there.
 
“Out of community of property with accrual”
Anything created during and in the marriage is shared. Anything prior is solely yours.
 
Did you buy the car and make the debt, after you got married? If after, I think the "with accrual" part means, that a part of the debt will probably be passed to your wife.
 
beans100 said:
Did you buy the car and make the debt, after you got married? If after, I think the "with accrual" part means, that a part of the debt will probably be passed to your wife.
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Husband, presumably.

But I believe the accrual applies only to assets.
 
John Tempus said:
You should take another look at death coverage on the outstanding loans. It is mandatory with the new credit act so I assume you have had that open since before then ? If you got this credit after the new credit act they could not allow you to sign for any of that credit without providing your own coverage or signing their own coverage.

I am also in CPT and without debt ie. NO DEBT, in your case I would actually try and settle the debt as soon as possible with whatever you can budget each month and get out of it. Better to have certainty about your finances and future in case you die than to hog your extra monthly income which doesn't really mean much if you are still over R300k in actual debt.
Click to expand...


I believe the revolving loan was taken out prior to the mandated coverage, I am going to double check on the vehicle loan. I think it would be best to just check and try get it done now.
 
maumau said:
Silly question. @OP why do you care about leaving debt when you die?

Or are you just curious?
Click to expand...

I just want to ensure that what little I have (my RA gets) paid to my husband as it should. He is currently unemployed and I need to make sure I have all my ducks in a row.
 
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