Legal Question in Real Estate Law in California
I'll try to explain this simply: My sister and I have recently gone into contract to sell our Mother's home. We are co-trustees, Mom in convalesent hospital with Alzheimer's. We have signed documents for the sale but the final "documents from the buyer's lender" have not been completed. All proceeds from the sale are arranged to go into Mom's bank account. Now Mom died 2 days ago. Don't know if this changes things and my sister and I now become the "owners" of the house since there is a will stating a 50/50 split. Next hurdle..........there is a judgment (I think IRS) against my sister, not me. Title co had stated previously that any judgement would be paid off the top of the profit from sale. How could this be true? Her judgement should be taken from her half of the profits and should be handled that way by the title co. What is true? What should I do about notifying the realtor? Can the title co. disburse funds as me getting my half and my sister getting what's left over from the judgment. Please help.
3 Answers from Attorneys
If the home is actually owned by a trust, and the sales contract is between the trust and the buyer, the trust can sell whether the person is alive or not. If you haven't already done so, consult a tax adviser before going any further.
Your distribution and judgment lien questions can NOT be intelligently answered by anonymous free hints and tipsl It requires informed advice, after reviewing and knowing all the facts and issues about the trust, will, sale, liens, etc. Resolution of this will require written documentation of whatever agreement is reached among all the parties in the trust, will, and sale. Or, you can fly by the seat of your pants and risk litigation over the trust distributions, sale outcome, and judgments.
If serious about hiring counsel to help in this, and if this is in SoCal, feel free to contact me.
I agree with Mr. Nelson 100%. If you would like a consultation in the San Francisco Bay Area or Sacramento, feel free to contact me.
I agree with Mr. Nelson, and would like to add a couple of observations. First, as between the will and the trust, if the home is in the trust, what the will says about the home is almost immaterial as a will-writer can only direct, in the will, the disposition of property he/she owns directly; normally, property that's in a trust passes outside and without reference to, provisions of the trustor's will.
Next, I agree that if the death of the trustor (your mother) does not affect the identity of the trustees, or any other term of the trust, there should be no affect on the sale.
Finally, as to the tax issue. Based on the facts given, I'd say you're right, and that the lien should be satisfied from your sister's share of the net proceeds of sale. However, title company lawyers, especially ones able to examine all the documents (the trust, the home ownership records, the abstract of judgment, etc., should be well-qualified and well-positioned to get his absolutely right, so I'd be very hesitant to agree with you based on the information I have.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
