<prompt> Human: My girlfriend and her daughter moved in with me about a year ago and I want to make sure they have a good plan set-up in the event of my death. I already have a will leaving almost everything to her and her daughter. I am financially stable and have a good chunk of life insurance left to them and my parents as well as some assestsstocksfundsetc.My biggest question is about my house. I am currently underwater by several thousand dollars on my mortgage probably around 40,000 actually. Not a problem for me because I have a good stable income, but my girlfriend on her own makes significantly less. With the life insurance she would be able to pay off the house outright, but there wouldnt be much left after that. 40k isnt chump change to us. My question is, would it be better for her to let the bank take the house and buy it from them at the actual cost? Would it have to be put up to sell or auction by the bank before she could get it? Or could she get dibs on it since she resides here currently? Or is she obligated to pay the full amount using my assets as the executor of my will? Would it be unusual for the bank to work with her to pay off only what the house is worth instead of the full amount? If she wanted to move after my death, it wouldnt be an issue, but Id like her to have the option to stay and not pay out 40k she doesnt need to.  <response>: Any reason you havent chosen a civil unionmarriage? That might help your situation. You sound pretty committed to each other. If she wants to stay, shell have to pay. Your best bet is to have enough life insurance to cover funeral and a house payoff. Then, if she wants to stay she can pay it off or not. 