Legal Question in Wills and Trusts in California

Probate/Non-Probate

My mother-in-law passed away leaving behind $15-$20K credit debt. She had $700 cash and half-owned, with her brother, a single family home & a commercial building. These were left to her by her mother. Attorney handling the trust has handled family matters for 3 generations. My mother-in-law could not afford to maintain the home on her disability, so she and her brother put the house up for sale. She then passed away and the house has been on the market since (8 months). The lawyer told us serveral months ago the house was not subject to probate since it was a jointly owned property with her brother. He gave us ok to sell house & write all creditors informing them there was no probate estate and no funds to pay her debts. He also knew the sale of the house would generate over $100k in equity for the estate. He said this was not an issue. The home is in escrow. The lawyer said today we would have to open a trust account and pay off debts. He knew what would happen months ago. If we had known, we would have rented house out until the transfer to my wife was complete. Did we lie to creditors? Why would he tell us we have to pay now? He likened it to Clinton/Lewinsky....''they say they didn't have sex...'' to my wife. Thx


Asked on 8/11/08, 9:32 pm

1 Answer from Attorneys
Delilah Knox Rios Delilah Knox Rios, Attorney At Law, APLC

Re: Probate/Non-Probate

Is the property in California? If the property was jointly owned (i.e. joint tenants, not tenants in common) between mother-in-law and her brother, then the brother now owns 100% of the property. There may not be a probate (which is a court proceeding) but that doesn't mean there may not be inheritance taxes on the property (California has no current inheritance taxes) If mother-in-law owed debts, they should be paid..but from which property? If the property was jointly owned as tenants in common, there is going to be some ramifications when the property is transferred. I dont have enough information to fully answer your question...sorry

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Answered on 8/11/08, 11:53 pm


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