Legal Question in Wills and Trusts in Utah
Reverse Morgtage -
If your parents obtain a reverse mortgage on their home to pay outstanding medical bills, and I'm the executor of their estate, when both parents are deceased, what's my legal obligation if the home value was less than the amount of the reverse mortgage, or if the home wasn't to sell within the 1 year time frame allowed? Does me being the executor obligate me to repay that mortgage, or if the estate was to file bankruptcy would that reflect on my financial standing/credit?
1 Answer from Attorneys
Re: Reverse Morgtage -
An executor is not personally liable for the debts of the estate (your parents' debts) - your credit will not be affected by the estate. If the home sells for less than the mortgage, the lender takes the hit. Estates do not need to file for bankruptcy. The estate would be liquidated and the assets distributed to creditors. Unpaid creditors would lose.
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