Legal Question in Wills and Trusts in New Jersey
Heirs, stellements and Judgements
Father passed away, leaving a home: 5 siblings; house sold; one sibling has an outstanding child support (50K +); We're told that his judgment gets paid first which doesnt' seem fair to the other siblings.
3 Answers from Attorneys
Re: Heirs, stellements and Judgements
As Mr. Chester noted if the title company wants the judgment paid you have to pay it out of the proceeds of the sale as you have to convey "clear title" to the purchasers i.e. no liens or judgments at the time of sale.
However the siblings would have a claim against the one with the outstanding obligation and this can probably be made up from his/her share in the estate. Also at least the niece/nephew will receive this money that is obviously long overdue.
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Re: Heirs, stellements and Judgements
I do not necessarily agree with the other writers. My belief is that the heirs take equally, and while the outstanding child support lien is against all assets that come into the possession of the debtor, it only applies against his share of the sales proceeds, not the entire property sales proceeds. This should be checked with the title company.
Re: Heirs, stellements and Judgements
It's not fair to the other siblings. Then again, it's not fair to his kids that he hasn't paid them $50K in child support.
If the title company is insisting that the judgement gets paid in full, then it has to get paid. You and your siblings will have a claim against your brother for whatever amount of his debt is paid from your shares of the house. If there are other estate assets, those can be used to "even up" the distributions so that you and your siblings are made whole.