King v. Manders
Oct 12, 2008OUTCOME: Debts of estate resolved
This case involved a decision concerning whether a mortgage is a debt of an estate when the real estate securing the mortgage passes to a joint tenant. The Georgia Supreme Court held that when a joint ... tenant gains ownership of property because the other joint tenant passes away, there is no requirement for the estate to pay the outstanding balance of the mortgage; however, if the real estate is sold or foreclosed upon and there is a deficiency remaining after the sale of the property, the estate is responsible for the deficiency. The Supreme Court also clarified the issue of exoneration in Georgia. If the property had passed pursuant to a will, it woudl have been the duty of the estate to pay the mortgage when it transferred the property.
