Estate administrator is paying off loans where they are the primary borrow and deceased was a cosigner.:
My father passed away without a will. My sister is the estate administrator and has been completely non communicative regarding anything going on in the time since. We've been suspicious of several issues with the way in which the house was sold and items removed.
Recently she paid off her student loans, for which my father was a cosigner, using estate funds. Is this legal? I did not believe he or his estate would be responsible unless my sister had defaulted.
Thank you!
Elisha’s answer:
Federal student loans, including Direct Loans and Parent PLUS Loans, are typically discharged upon the death of the borrower or, in some cases, the cosigner. If your sister’s loans were federal, your father’s estate would likely not be responsible for repayment unless your sister defaulted and the lender pursued the estate before his death.
Cosigner Liability: If your father cosigned a federal loan, his death would typically not trigger immediate liability for the estate, and the loan might be discharged or continue to be your sister’s responsibility as the primary borrower.
Private student loans have varying policies regarding the death of a borrower or cosigner. Cosigner Responsibility: As a cosigner, your father agreed to be equally responsible for the loan if your sister failed to make payments. If your sister was current on her payments and not in default, the lender would typically not pursue the cosigner or his estate. However, some private loan agreements include automatic default clauses that could accelerate the loan (make the full balance due immediately) upon the cosigner’s death, though such clauses are becoming rarer due to regulatory pressure.
I want to protect my assets such as, crypto investments, personal savings and my construction corporation, what kind of lawyer?: I was invloed in a car accident, someone ran into my car, they are suing the insurance, I want to take extra measure on protecting my assets such as crypto, personal savings and corporation. Just in case the plaintiff tries to go after them? I need a way to protect the little I have legally.
Elisha’s answer:
At this time, any planning that would hide your assets from the person suing you would be considered a Fraudulent Conveyance to Defraud a Creditor and would be able to be undone by the court.
Asset Protection Planning only helps with protecting for claims that arise after the assets have been moved, not before.
My mother just passed away. I live in CT and she lived in NYC. My name and her name are jointly listed on deed to her property :
We're both on deed to her single family home with right of survivorship. Before she passed she was making payments on home equity loan that only her and my deceased father had signed the note. She owes about $90,000.
Now that she passed and my name is on deed but not on note for home equity loan, am I responsible for making payments on that loan?
Elisha’s answer:
Since you were listed on the deed with right of survivorship, you automatically become the sole owner of the property upon your mother's death. However, because the home equity loan is a lien against the property, it must be dealt with regardless of whose name is on the note.
Here are the key points:
Home Equity Loan Responsibility: While you are not personally liable for the loan since you didn't sign the note, the loan remains a lien on the property. The lender can demand repayment from the property, and if the loan isn't paid, they could potentially foreclose on the home.
Options for the Loan:
Continue Payments: You can choose to continue making the payments on the home equity loan to keep the property.
Refinance: You might be able to refinance the home equity loan in your name, which could potentially give you better terms.
Pay Off the Loan: If possible, you could pay off the remaining balance to clear the lien.
Sell the Property: Selling the property would also discharge the loan, with the loan balance being paid out of the sale proceeds.