Legal Question in Credit and Debt Law in California
Father died, who pays the Debt of a loan when trust has been distrubuted already
Years ago my father got an equity line of credit. The property was sold and the loan was repayed. The Credit Union later let him borrow $42,000 Equity line of Credit(Their error). The money has been spent, and the property was sold prior to him borrowing the money. Since my fathers death 2 yrs ago, I have been making the payments. My fathers assets have been distributed amoung his 4 children. I am unable to keep up the loan payments. The CU is trying to make me responsible for the loan. My father gifted some of this money too me for taking care of him. Am I responsible for this loan? If not, how do I protect myself from them trying to make me responsible for repayment? What should I do?
1 Answer from Attorneys
Re: Father died, who pays the Debt of a loan when trust has been distrubuted alr
Under California law, to the extent that you received any assets from your father without probate proceedings (or outside of a trust), you will probably be held responsible for the loan. For instance, if you received $10,000.00 from your father's estate, you would be liable to the Credit Union for some amount up to $10,000.00. Similarly, your siblings are also liable to your father's creditors to the extent they have received any assets from his estate. You might want to consider talking with your brothers and sisters to see if you can all extinguish this debt.
Alternatively, you could always simply tell the Credit Union that you have paid all that you feel you must pay, and will make no further payments. At that point, the Credit Union will have to make a decision whether to sue you and potentially your brothers and sisters for return of the money, or simply write the debt off.
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