How do I give instructions to my Executor(s) to use an asset (e.g. insurance policy) to pay off an outstanding mortgage loan?
Since mortgage loans may change over time due to refinancing/repricing, such instructions are written to refer to the loan of a specific asset rather than directly referring to the particular loan itself. It is also good to cater for the distribution of any remaining balance of the asset after being used to pay off the mortgage loan.
If the asset is a movable asset (e.g. payout from an insurance policy), within the asset itself toggle on "Additional Instructions" and key in the following:
I direct my Executor(s) to use this asset to pay off any outstanding loan for my {Property Type} at {Address}. The remaining balance of this asset (if any) shall then be redistributed in the following manner:
- XX% to my {Relationship}, {Name}, {Identification Number/details}; and
- XX% to my {Relationship}, {Name}, {Identification Number/details}.
If the asset is an immovable asset that has to be liquidated first, key in the following instead:
I direct my Executor(s) to liquidate this asset with the net proceeds to be used to pay off any outstanding loan for my {Property Type} at {Address}. The remaining balance of the net proceeds of this asset (if any) shall then be redistributed in the following manner:
- XX% to my {Relationship}, {Name}, {Identification Number/details}; and
- XX% to my {Relationship}, {Name}, {Identification Number/details}.
