Legal Question in Credit and Debt Law in California
A quick background on a previous question; My elderly Mother co signs for a loan for her young granddaughter, how responsible is she if the granddaughter defaults?
The answer is yes she is and so would her estate be.
But what if years or a sufficient amount of time goes by after her death, after the estate is settled when the granddaughter might default. Would her heirs be really responsible?
This is entirely speculative, no such thing has happened.
1 Answer from Attorneys
This is now beginning to feel like a law school exam. The answer is complicated and can take many different tangents. But, generally...
When mom dies, the administrator of her estate is supposed to send notice of death to her creditors. They have 120 days to make a claim on her estate. If no claims are made, the estate is released from liability for the debt.
However, if no notice is sent, the creditor has 4 years from the date of the breach to sue. The administrator could be held liable for the debt if that person did not fulfill their duties to the estate.
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