Can the executor of an estate sell a house to pay off the equity line of credit even though it is in probate?
by admin ~ January 9th, 2006 . Filed under: Law & Ethics .
Tapping on your toes asked:
and there is a girlfriend living in it that has an life estate interest?
Crista Gillespi
and there is a girlfriend living in it that has an life estate interest?
Crista Gillespi
January 13th, 2006 at 9:41 am
My understanding is that, when in probate, the court or its agent will have to permit the property to be sold, but this may vary by state. And if someone has a life estate, you are selling limited property rights, and will likely not achieve a value representing the full bundle of rights.
January 13th, 2006 at 12:19 pm
How did it get to probate? You lost control at that point, and you &/or they are stuck for the time being.
January 13th, 2006 at 1:11 pm
Yes, disposing of assets to satisfy creditor claims is part of the process. The life estate would have to have been disclosed to the buyers as part of the sale documents.
January 13th, 2006 at 3:02 pm
If the estate had lots of debt and minimal assets, the assets are used to pay off the debt BEFORE anything is left to the heirs.
The girlfriend’s life estate means little if the boyfriend didn’t leave enough money to cover his debts.
January 14th, 2006 at 11:07 pm
If the life estate is in the chain of title before the creditor’s lien attached, I would say no, since the reversionary interest isn’t in the decedent’s Estate, but subject to the life estate. Very interesting question. This also depends on WHAT STATE YOU ARE IN.
This is not legal advice and I am not an attorney licensed to practice law in your state. If you have any questions whatsoever about your situation, you should consult an attorney for advice.