Q: sisters want to sell a house they inherited, one wants reimbursed for paying the mortgage before the sale is that legal?
Two sisters inherited a house, one is the executor of the will. They both wish to sell the house but the executor payed the mortgage for the last two months out of pocket instead of out of the estate funds. She now wants reimbursed saying there were no estate funds only the bequeathments as set by the estate. She wants the other sister to sign a quit claim deed so she gets sole ownership of the house. The executor knows the other sister cant afford the mortgage of the house. She also waited a month and a half after the death to list the house for sale. Is there anything the nonexecutor sister can do?
A: Yes. The sister can petition the court to remove the Personal Representative, who is not doing the job properly. There is no reason to pay a mortgage if the estate is insolvent. It just means the house must be sold. The bank will get all its money at settlement, if the price is high enough. The "quitclaim" approach is wrong and will not solve the problem.
A:
An online post cannot fully answer specific questions about a specific estate, but generally speaking one way or the other the mortgage needs to be paid and in nearly all scenarios this legally is treated as an estate expense.
If an estate lacks liquid funds (cash) to pay the mortgage, and a family member advances funds out of their own pocket then generally yes that person would get reimbursed. If the property is still in the name of the deceased person when it sells then the sale proceeds must go into an estate account, any advances to pay estate expenses would get reimbursed, an Accounting would be filed with the court and consistent with that accounting (once approved by the court), whatever is left over in the estate after bills have been paid should be disbursed to the heirs.
If everyone agrees as to who should get the house, a quit claim deed between heirs may not be the best way to handle this because it will require at a minimum 2 deeds and may incur county transfer taxes. Whether or not someone should sign over their rights in a home to their sibling in any particular scenario really requires legal advice. I encourage you to meet with an estate attorney to discuss and strongly encourage that any deed be prepared by a licensed attorney.
While not legal advice or a substitute for sitting down with an attorney, I hope this general information helps.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
