Legal Question in Wills and Trusts in Colorado

My Dad passed away 2 years ago and we still have his estate open. I�m wanting to officialy close it now but I have some concerns:

1. Do I have to notify the mortgage company for his home loan? The loan is not in default and I intent to use rent money to continue to pay off the loan. � I�m afraid if I tell them my Dad is gone they will try to foreclose on the property.

2. Would it be best to create an LLC to hold the funds collected from the proceeds of the rental?

Any input is greatly appreciated.


Asked on 4/11/13, 10:36 am

1 Answer from Attorneys
Bernard Greenberg KOKISH & GOLDMANIS, P.C.

If the mortgage lender wasn't notified it means that you did not administer the estate properly. They are a creditor of the estate and should have been listed as such. Generally, mortgage companies are quite willing to work with the Personal Representative and eventual beneficiaries if the mortgage payments are kept current.

Another way you know that this is correct is that you cannot close the estate without transferring the property out of your father's estate. The estate cannot be closed as long as there is any property left in the estate or any estate creditor not dealt with. By not giving proper notice to the mortgage company, this process did not occur.

Your best course of action is to consult with an attorney specializing in estate administration and not to proceed based solely on advice over the internet.

Read more
Answered on 4/11/13, 11:39 am


Related Questions & Answers

More Probate, Trusts, Wills & Estates questions and answers in Colorado