What happens in the event you die with investment properties in negative equity.

[landlord]

I am Concerned about the welfare of my partner (not married) and 2 children. I am in good health, mid 30s and not expecting to kick the bucket any time soon, but the "what if" scenario has me thinking.
I own multiple investment properties (in my name) which are all in netagive equity, by about 400,000 and a home (in both my partners and my name) which would just break even if sold at the current market value.
I know that if I die my mortgage protection pays off my home loan.
I have no mortgage protection on the investment properties.
If I die am I leaving my partner and kids exposed. i.e. if the investment properties are in negative equity will the bank come looking for any assets I have left......i.e. the family home where my partner and kids live?

 

[Ann1]

The family home will probably be safe ...unless both of you used equity in the family home to raise funds to buy any of the investment properties ie. your partner gave her permission. I would imagine any other assets in your name could be pursued by anyone you owe money to. I doubt your partner could be pursued if she has no financial interest in the investment properties.

Some light reading here
http://www.irishstatutebook.ie/1976/en/act/pub/0027/print.html

 

[Mrs Vimes]

Assuming you own your own home jointly with your partner, if you die she will wholly own it and it will fall outside of your estate. As Ann1 says they will be able to come after any other assets you may have at time of death but unless you have specifically and with your partner's written consent given a charge over the family home it should be safe.

It might be time to make a will all the same....

 

[NorfBank]

It might be time to make a will all the same....

It may also be time to take out some mortgage protection even if you just insure the €400k negative equity to keep the costs down. As you are young and in good health, it shouldn't be too expensive.

 

[Mrs Vimes]

Why bother if the mortgage holders of the investment properties have no other comeback? Don't mean to advocate evading responsibility but paying out for life assurance to protect banks rather than your family sounds a little toooooo responsible