Walnut Creek, CA asked in Real Estate Law, Probate and Collections for California

Q: Is there a time limit on collecting on a judgement against deceased?

Also can property that deceased owned as tenants in common be taken from heirs?

1 Lawyer Answer

A: Dear Walnut Creek, CA:

I'm not certain what you mean by "taken from heirs", but here is the skinny on property a decedent owns as tenants in common with other people and debts of a decedent.

TENANTS IN COMMON:

If a decedent owns property as a tenant in common with other people, the decedent's interest will pass to the decedent's heirs. While the remaining owners continue to own their share.

For example, Sam owns Blackstone with Fred and Jan. When Sam dies, his 1/3 will be divided amount his heirs according to his will, intestacy (no will) or by the terms of his trust.

Normally, this results in either an agreed upon sale of the property, or a partition action. A partition action is where one owner ask the court to sell the property and divide the proceeds among the other owners.

A DECEDENT'S DEBTS

You did not mention if the Judgement is recorded. This is important.

If the judgment is recorded it becomes a lien upon the property, and when the property is sold the judgement will need to be satisfied. Unlike other debts, a recorded judgement is not subject to the universal one year limitations period for debts owed by a decedent.

If it was not recorded, then the Judgement Creditor needs to file a creditor's claim in the decedent's estate. If an estate is not opened, then the creditor may petition to become the administrator. After the requisite period following the filing of the creditor's claim, the judgement creditor may sue the estate to satisfy the debt.

If the creditor fails to file the claim within one year of the decedent's death, the claim becomes time barred. (Of course there are some exceptions.)

A FEW OTHER ITEMS OF NOTE

I should mention that this applied to Decedent's probate estates. If there is a trust, then the creditor needs to make a claim against the trust.

On the other hand, if property passed without probate (for example, by a transfer on death deed or a affidavit for transfer of property) the recipient of the property may remain liable for the Decedent's debts up to the value of the property they received form the estate.

Finally, in a probate case there is a priority to creditor's claim and an order to which property is used to satisfy creditors.

In closing, I would speak with an attorney about this. If you are the judgement creditor, you want to make sure you do not let your rights lapse, if you are an heir, you want to find out where you stand. Decedent's and debts is a bit of a complicated area and tends to be very fact sensitive. (The information above is just an overview.)

If you do not know where to find an attorney, I would check with your local county bar association. Most run attorney referral services that provide low or no cost consultations.

Best of luck.

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