Legal Question in Wills and Trusts in New Mexico
When is it safe to distribute funds to heirs
I've read that executors must pay all bills before distributing funds to heirs. What type of confirmation would I need after a mortgage has been paid due to a house sale. Wouldn't I need some type of written confirmation from the mortgage bank saying that the lien has been released? The house sale just closed yesterday and one of the heirs thinks that I can just release their share immediately upon funding and deposit into the estate bank account. The mortgage ''bill'' is the last bill to be paid, all other creditors have been satisfied.
1 Answer from Attorneys
Re: When is it safe to distribute funds to heirs
If the sale has closed and the money has been paid, a confirmation of sale or final sales documents have been issued by the escrow company handling the closing. If the sale is complete and the estate has the funds, a release from the original mortgage holder is not the problem of the estate but of the assuming financial institution or the buyers.
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