Q: I have a Question I am the Beneficiary of a Home with 50k left on Mortgage and it is worth 250 k. Will I be Responsible
For Unsecured Debt that My Grandmother has after she dies and what will my responsibilities be?
A:
Well that depends on your position. Are you the named personal representative? Are you a trustee of the the trust that the home is titled in? Perhaps you are on title with your grandmother as joint tenants with a right of survivorship. Or maybe you are named in the will as the beneficiary of the house. These scenarios all create different answers.
I am assuming that you understand that the mortgage on the home is "secured debt" and that you are asking about credit card debt or other personal loans (unsecured debt).
If you are not an executor/personal representative or successor trustee of your grandmother's estate, then you will have no responsibilities for the unsecured debt of your grandmother. If you do hold one of these positions, then you will be in charge of settling all the debts prior to any distributions. This would include the debt on the house unless you agree as the beneficiary to continue making payments on the home or sell it to satisfy the debt.
The PR/Trustee/Executor is in charge of settling the estate. The priority of payout goes like this, 1st costs of the funeral/burial, administration, 2nd legitimate creditors, and 3rd beneficiaries named in the will/trust. I hope this helps.
Wes
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