How to "void" mortgage via Last Will?

[moonseeker]

How would I make sure a mortgage I hold on a property gets cleared w/o the mortgagor (Thai National/Friend) having to pay the mortgage, when I pass away. How would that to be 

worded properly in a Will? How would it play out, procedures? Never know how heirs and inheritance work out. Seen tons of greed & arguments from people I never expected it.

Thank you for anyone aware and sharing of details.  HAPPY SONGKRAN!   MS>

[mstevens]

When you die your estate would be responsible for clearing the mortgage on any property before that property could then be left to a beneficiary of your choosing, as well as clearing all other debts in your name.  It is the responsibility of the executor of the will to see that all debts are settled before assets can be distributed.

[Crossy]

Just to clarify (please correct me if I'm wrong).

 

Your friend holds the mortgage as the borrower, you are guarantor or just pay the mortgage.

 

So in effect the property is not part of your estate so won't fall under the requirement for the debt to be cleared before the spoils are distributed.

 

You need words to the effect "The mortgage on property Xyz, held by Name of Friend shall be cleared from my estate before the remnants are divided ..." then go on to say how any remainder is to be split.

 

I'm no legal-eagle, others should come up with the proper wording.

 

[moonseeker]

Maybe I was no clear sorry. I am holding a mortgage on a ?? property. I want the mortgagor not to have to pay back the mortgage to my estate when I die. Basically I want to bequeath the the amount owed at such a time and void the mortgage. How to properly do this within the framework of Last Will and inheritance procedures. Thx. MS>

[Crossy]

Ahhhhh, now it's clearer (I think), you are the lender?

 

[simoh1490]

Then you need to state that you forgive that debt and do not require it to be repaid to your estate.

[moonseeker]

Thank you to all kind responses so far. Obviously I will contact my lawyer to write this all up properly in due time, I am stage 4 C and must prepare so make it easier on friends and family. So, "forgiving that debt/mortgage" would hold up? I will also instruct my trusted brother who

is the main heir and will receive all residual Estate about my wishes separately. Anybody have experience with such a specific case? How detailed does it need to be written down, spelled out? Any danger the probate court does not understand, I guess the administrator is the final "force", but will the Land-Office act on his behalf and revoke that mortgage. Sorry, about the many questions, but this all comes to mind preparing for what is to come. Thank you and nice weekend.  MS>

[fifelad55]

3 hours ago, moonseeker said:

Thank you to all kind responses so far. Obviously I will contact my lawyer to write this all up properly in due time, I am stage 4 C and must prepare so make it easier on friends and family. So, "forgiving that debt/mortgage" would hold up? I will also instruct my trusted brother who

is the main heir and will receive all residual Estate about my wishes separately. Anybody have experience with such a specific case? How detailed does it need to be written down, spelled out? Any danger the probate court does not understand, I guess the administrator is the final "force", but will the Land-Office act on his behalf and revoke that mortgage. Sorry, about the many questions, but this all comes to mind preparing for what is to come. Thank you and nice weekend.  MS>

Simoly bequeath any balance outstanding on the mortgage to he person you lent the money?

[seancbk]

8 hours ago, Crossy said:

Ahhhhh, now it's clearer (I think), you are the lender?

 

 

No he is the borrower.   His Thai friend is (I think) the guarantor on the mortgage.  He wants to ensure that his Thai friend isn't saddled with the remaining payments.

 

[Suradit69]

8 hours ago, moonseeker said:

Maybe I was no clear sorry. I am holding a mortgage on a ?? property. I want the mortgagor not to have to pay back the mortgage to my estate when I die. Basically I want to bequeath the the amount owed at such a time and void the mortgage. How to properly do this within the framework of Last Will and inheritance procedures. Thx. MS>

So basically you lent someone money for a property purchase and when you die you want the debt erased so s/he no longer has to pay off any remaining balance.

 

Give the lawyer who draws up the will the details of what you want. It's not an unusual request especially if the loan is just between you and the borrower.  If a bank is involved as an intermediary, that would make it more complicated and the executor would have more to do.

[CMBob]

4 hours ago, moonseeker said:

Obviously I will contact my lawyer to write this all up properly in due time....

Smart move....and I trust you're talking about a Thai lawyer to write a Thai Will (which will expedite handling of interests you have here in Thailand including the mortgage you hold).

 

It's easily done and your Thai lawyer will come up with satisfactory wording.  I've handled the same kind of language in the states and it could read something like this:

"I give, devise and bequeath to X (the mortgagor) all interest I have in a mortage dated ______, recorded in _______, and involving lands being legally described as follows:

                                                                                                     (Legal description of liened lands) 

In other words, I am forgiving at the time of my death any and all balance owed by X on that described mortage and I instruct my executor to record a discharge of the lien of said mortgage."

 

A mortgage is a lien against real estate owned by somebody else (the mortgagor) and held by you (the mortgagee and lender).  It's common to mix up the terms. 

Edited April 14, 2018 by CMBob

[Crossy]

5 minutes ago, CMBob said:

A mortgage is a lien against real estate owned by somebody else (the mortgagor) and held by you (the mortgagee and lender).  It's common to mix up the terms. 

Yeah, confuses the heck out of me which is why I prefer "lender" and "borrower" much simpler for the lay-person to relate to.

[Jeffkp]

I am sorry about your cancer. You might also want to make sure your will specifically excludes anyone you not want to inherit (ex-wife, etc.)

Best of luck to you.

[blackcab]

I still don't understand who is the mortgagee, who is the mortgagor and if there is a guarantor.

 

Is the mortgage registered on the back of the title deed?

[timendres]

Why must it wait for your death? Void the mortgage now, while you can still ensure it is done properly.

[moonseeker]

9 hours ago, blackcab said:

I still don't understand who is the mortgagee, who is the mortgagor and if there is a guarantor.

 

Is the mortgage registered on the back of the title deed?

I am the lender. Yes, duly registered at Landoffice and in Chanode. Thank you. MS>

[thailand49]

21 hours ago, moonseeker said:

Thank you to all kind responses so far. Obviously I will contact my lawyer to write this all up properly in due time, I am stage 4 C and must prepare so make it easier on friends and family. So, "forgiving that debt/mortgage" would hold up? I will also instruct my trusted brother who

is the main heir and will receive all residual Estate about my wishes separately. Anybody have experience with such a specific case? How detailed does it need to be written down, spelled out? Any danger the probate court does not understand, I guess the administrator is the final "force", but will the Land-Office act on his behalf and revoke that mortgage. Sorry, about the many questions, but this all comes to mind preparing for what is to come. Thank you and nice weekend.  MS>

Whatever you do you should have it translated for you brother. Personally unless I'm reading the message incorrect and situation you have lend money to a women to buy a house it is under her name already and the agreement is for her to pay you back? Do you live in the house as part of that agreement? 

If that is the case in verbal or written between the two of you I don't think you need to write that in a Will or Trust. 

The reason you do a Will and Trust is to avoid Probate.

For me at least it is confusing are you doing this in Thailand and is your brother in Thailand also?

I think if you just leave out all the legal terms you are using and just say what you need to say and what you actually did would be helpful? 

Sorry to hear about your situation and best of luck..  I also have a trusted brother who is the Executor to my Estate.  Good luck!

[Langsuan Man]

7 hours ago, timendres said:

Why must it wait for your death? Void the mortgage now, while you can still ensure it is done properly.

Exactly.  The purpose of a last will is to insure that certain things are done after your death and is designed to protect your estate in the case of a sudden unexpected death

 

But it is your responsibility to get as much taken care of before you die as is practical.  Don't burden others with what  you can do yourself since your are in the enviable position to be able to plan ahead 

[seancbk]

2 hours ago, Langsuan Man said:

9 hours ago, timendres said:

Why must it wait for your death? Void the mortgage now, while you can still ensure it is done properly.

Exactly.  The purpose of a last will is to insure that certain things are done after your death and is designed to protect your estate in the case of a sudden unexpected death

 

But it is your responsibility to get as much taken care of before you die as is practical.  Don't burden others with what  you can do yourself since your are in the enviable position to be able to plan ahead 

 

The last thing I'd call the OP's very unfortunate situation is 'enviable'.