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Joint bond: What happens if one of us dies?

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Q

Hi, my fiancé and I have a joint bond. He is the one paying the bond, in fact money is being deducted from his account. What will happen if one partner passed on? We have a home loan life cover. Kind regards – Mpho

A

Hi Mpho, applying for a joint bond means that you are equally responsible for the repayment of that debt, regardless of how you decide to split your financial responsibilities as a couple.

If you enter into a joint bond with a person to whom you are not married, the implication is that you are held jointly and severally responsible for the entire loan amount.

Where a bondholder dies, the surviving bondholder must immediately notify the bank of the death. It is prudent for a bondholder to take out sufficient life cover to settle the outstanding amount of the bond in the event of death of either party.


Got a burning question? Email mariette@hometimes.co.za and we will be sure to assist you


MV Van Der Berg Inc

Who is Sonja du Toit?

Sonja du Toit, director at MC van der Berg Incorporated.

Sonja du Toit, director at MC van der Berg Incorporated.

Sonja du Toit is a director at MC van der Berg Incorporated

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ungerermariette@gmail.com

Mariette Steynberg is a qualified economist with a post-graduate diploma in financial planning. She has enjoyed working on holistic financial plans for clients in various stages of life, as well as a development economist assessing the socioeconomic impacts of new developments. When she is not working, Mariette enjoys parenting her quirky, delightful toddler girl. Cloth diapering, Eskimo kisses and the importance of reading to your child are all causes close to her heart. Mariette is passionate about financial education and hopes to use the experience she has gained to share knowledge with HomeTimes’ readership. Her goal is to provide information that is implementable by everyone.

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