Legal Question in Wills and Trusts in California
Will and Trust
My father owns a condo that was worth $130000 and has a line of credit that has been used of $90,000. The condo is now worth about $25,000. He is 96 years , and he left the condo to me in his trust. My question is when he passes away, am I responsible for the difference, should he take the condo out of the trust, and can the bank take any of the small amount of cash my father has left in the bank to satisfy the difference or is the condo the only thing they can take?
1 Answer from Attorneys
Re: Will and Trust
You are not responsible for his debts unless you have separately agreed with his creditors to be responsible for them, like being a co-signer. His estate is responsible for his debts, up to the amount of the estate, so his other assets (if any) can be used to pay the creditors back, including the bank, after costs of estate administration have been paid.
Since you're not responsible for his debts, it wouldn't make any difference to move the condo outside of the trust. You should check to see whether the line of credit is a "non-recourse" or "recourse" loan--most are recourse, meaning your father's other assets can be available to the bank to pay the line of credit balance if the condo equity is insufficient.
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.
