Q: How is a personal loan handled in estate without a will if there's a shared mortgage?
If my father passes away and leaves behind a personal loan that is not fully paid, how will his estate handle it if we are jointly paying a mortgage that is also not yet paid off? There is no will currently, the loan has no cosigner, and my father owns nothing besides the house, which is also in my name. I'm not sure if the house is titled as joint tenants or tenants in common. Additionally, there are no other known debts or heirs involved.
A: If the property is the only asset and it is titled as joint tenants with right of survivorship, the property will pass to you without having to pay the personal loan by operation of the deed. The mortgage will still exist, and you will still have to pay it. If the property is held as tenants in common, your father's 50% of the property, if homestead property, will pass to his heirs free from the personal loan. The mortgage will still have to be paid.
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