Estate debt question

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  • Dirtebiker

    Grandmaster
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    49   0   0
    Feb 13, 2011
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    Greenwood
    I’m guessing there’s a few of you who have dealt with this issue and while I can guess and assume (and I will do the research), but in the meantime, I’d like to hear others experiences.

    Here’s the situation:
    My brother was killed a couple weeks ago. He had taken out a loan in his name alone (in Texas if it makes a difference) for a motor home. My sister in law has no use or desire to keep it. She asked if I’d like to take over the loan (I don’t think anyone does loan assumptions anymore,..). I’m not interested at the amount that is still owed.
    I wouldn’t mind having it at around half of the loan amount. I told her I’ll contact the bank and see if they’ll make any kind of deal on it before she gives it to them and they send it to auction.

    A couple questions.
    I’m sure states are different. If she just gives it to the bank, does she/his estate have any obligation for the balance, let’s say if it only brings half the loan amount at auction? Perhaps she’d be better off trying to sell it? Of course, that’s the last thing she needs to deal with right now.
    Will banks even make deals anymore? I’m guessing they stick firmly to policy and for the most part just send vehicles to auction and deal with the loss by billing/suing the estate or writing it off.
    I don’t know who she (or one of her kids) talked to, but she said she was told “don’t worry about it”. (I think I’m more worried FOR her than she is.)
     

    churchmouse

    I still care....Really
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    187   0   0
    Dec 7, 2011
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    May I say I am saddened by your loss.
    Condolences my friend.

    The bank will not let this go. All outstanding debt will come due on the estate if Texas is anything like Indiana.
     

    Dirtebiker

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    49   0   0
    Feb 13, 2011
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    Thanks buddy! That’s what I thought too. I don’t know who told her “don’t worry about it”!? I’m guessing someone who “wasn’t worried about it”!
     

    long coat

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    15   0   0
    Jun 6, 2010
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    Sorry about your brother.

    You might check the loan paperwork and make sure he didn't have something in it about if he dies, he doesn't have to pay it back. I don't remember what they call it, but I have been offered it before.
     

    Dirtebiker

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    49   0   0
    Feb 13, 2011
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    I’ve heard of mortgage life insurance, I assume there is something similar for vehicle loans. I don’t think he had that though or she would have mentioned it.
     

    hoosierdoc

    Freed prisoner
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    8   0   0
    Apr 27, 2011
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    If he had assets those need to be sold to cover debts before money can be removed from estate is my understanding

    half of a house with his wife counts as an asset to sell to pay off trailer IMO, but i’m No expert
     

    tsm

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    1   0   0
    Feb 1, 2013
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    Allen county
    Might want to ask a Texas estate attorney about it. Mistakes while closing out an estate can be costly. Some states might shield a jointly owned domicile from estate debts, but I don’t know if Texas does that.
     

    Tactically Fat

    Grandmaster
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    22   0   0
    Oct 8, 2014
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    The best bet will be to have your SIL talk to an estate lawyer in Texas. Other than the complete suckage that she's going through right now, it can be a whole other bad can of worms if something is mishandled on the estate-end of things.

    Generally everything will pass easy-peasy to her - including the debt incurred.
     

    spec4

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    1   0   0
    Jun 19, 2010
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    IANAL I believe the bank will sell the RV and if the proceeds don't retire the debt, they will file a claim on the estate of the deceased. You need to see the note he signed along with any other legal papers.
     

    Ingomike

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    6   0   0
    May 26, 2018
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    If he had assets those need to be sold to cover debts before money can be removed from estate is my understanding half of a house with his wife counts as an asset to sell to pay off trailer IMO, but i’m No expert


    I agree with the first part, but IF the house was owned as a husband & wife then both spouses owned the entire house, not half, so the wife continues to own the entire house not subject to the deceased spouses debts other than any mortgages attached to the home. Also, the H&W home ownership is not a part of the estate.

    This may vary from state to state and I am not an attorney but I did sleep well last night...
     

    Reverend Dreed

    Marksman
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    0   0   0
    Jan 24, 2016
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    new hope
    When I purchased our camper I hade life ins. added to the contract. It was only a few bucks per month extra, bad thing is when I turn 70 in a few months the ins. policy expires automatically.
     
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