Repayment of Loan After the Death of Participant

If a pensioner with a Home Equity Aceess Scheme loan dies and...

Then...

there is no surviving partner,

DVA usually enforces the charge on the property used as security and recovers the loan immediately as a lump sum.

there is a surviving partner entitled to loan payments but who does not wish to continue receiving them,

that person may choose to repay the loan at any time by making repayments or by withholding an amount from any pension entitlement.

there is a surviving partner entitled to loan payments and wishes to continue receiving them,

Payments will continue and recovery of the loan is deferred until the death of the surviving partner.

there is a surviving partner who is not entitled to receive Home Equity Access Scheme payments (for example they are below the pension age)

the loan may be recovered after the bereavement period.    

Note: In this case, discretion exists to phase, delay or accept partial recovery where the family home is involved.

If a member of the couple dies and the partner...

Then...

receives bereavement payment

the loan may be recovered after the last day on which a bereavement payment is payable.    

is over veteran pension age and has use of all or part of the assets subject to the charge

the loan may be recovered after the death of the partner.