Being a TRUE adult for 2 women who never see Eye to Eye

ok, I am the grandaughter (28) I am the executor of the Estate as my Mother and Aunt have not got along for over 30 years. They were FORTUNATELY Cordial at the funeral services.

Question:

Grams has a Trust and Will all spelled out. 1 day before her surgery she writes down what is to be split between the grandchildren and Writes "Give the house in TOWN to NAME2"

Now, Name2 seems to think because the house is not paid off that this is a debt that the estate will have to pay and that she is free and clear with no house payment.

Mind you this is the person that received $20,000 from my Grandmother in 1999 to pay back the Casino and still owes $15,969 on that loan.

Is she right or will it be her choice to purchase the house from the estate?

also, Name2 already lives in the house and the house was recently (in the past month) put in Grandmothers name due to legal troubles with Name2's teenage son.

First of all, as the executor, I would suggest that you need to have whatever Grams signed reviewed by an attorney to determine whether it is valid codicil to her will.  Has it been accepted by the court that is overseeing probate along with the will that you have submitted?

Second, you need to determine whether the house is in the trust.  If it's in the trust, it's subject to the terms of the trust, which may or may not mean that Name2 will receive it.

Third, if the house is not in the trust and is subject to probate, specific bequests to heirs are made last after all the debts of the deceased are paid for and all expenses of the estate are paid.  Whether Name2 will actually receive the house depends on a number of factors that include the amount of assets and debts that are in the estate. 

If you have not already done so, I'd suggest that you consult an attorney to help you with probate and these types of questions.

jess1980:

1 day before her surgery she writes down what is to be split between the grandchildren and Writes "Give the house in TOWN to NAME2"

You are going to need an attorney to review the will, the trust, and that writing and determine if that writing is a valid modification of the will or trust before you take another step with this.

jess1980:

the house was recently (in the past month) put in Grandmothers name

Wait a minute.

Did that happen before or after Grandmother died?

And in whose name was it before?

Ok THANK YOU!. I will most definately have EVERYTHING reviewed by an attorney and only then will things start. Name2 is trying to manipulate me. I will be unbiased in all affairs and let both daughters know nothing will be said until the courts decide whether this takes a month or a year.

Name2 was on the house a month ago with Grandmother however Name2's teenage son got in TROUBLE so Grandmother did not want the house to be taken from Name2 due to her sons legal issues.

Name1 on the other hand has been completely cooperative and is just trying to grieve. It has been 1 week. It is hard enough for me to grieve without having Name2 badger me about the Estate.

Thank you so much. My Husband and I are researching attorneys this week. Your reply is much appreciated.

Has the will been filed for probate--unless that step was taked and you are "official" executor you true powers are zippo.

GMs instruction to givew home to #2 may be defective--so be careful.

Generally one takes a property WITH the debt attached but details matter--and its possible that executor needs to sell home to address debts anyway.

If #2 owes GM 15K then as executor you have a duty to make sure it is collected.

People don't understand wills and trusts, and a last-second modification like what you've described kind of indicates that grandma was flying by the seat of her pants.

Property that a person owns himself at his death is subject to his will.

Property that is in a trust is NOT owns personally and NOT subject to a will, unless the trust has some power of appointment thing in it.

That's the first problem.

The second problem is that you can't just write a list of your wishes.  A will might refer to a separate document for devises, but the law governing that is complex.  Otherwise, the list needs to qualify as a codicil - basically meeting all the requirements of a regular will, but being an amendment.

As a general rule, the estate IS liable for the loan, but that doesn't mean the property passes completely to the heir.  Possibly the home needs to be sold and the remainder of the proceeds go to the heir.

Your post is quite unclear as to how title was held for home at time GM passed-in GMs name? In name of trust? -and its entirely possible that her last minute instructions do NOT count. What instruction supposedly was altered or created to give home to #2. Good odds its not valid!

BTW, on what basis in #2 in the home now --as a bonafide tenant or as an invited guest --you duty as executor is to in part to protect the estate--and that may mean NOT providing a free place for relatives to squat and or squabble.

Ok, so #2 and GM went in on the house together in 2007 because #2 is recovering from bankruptcy from a gambling problem so #2 lives there with her teenager. So, GM went in on it. Then about 2 months ago #2 teenager got in BIG trouble with the law so GM stepped in (just 2 weeks prior her death) and put the Title of the house in her name so it wouldn’t get taken due to the teenagers legal trouble.

So, lets say there is $xxx,xxx money in investments, $xx,xxx in property and there is a full house loan to be paid on the house #2 lives in. Does the estate pay off that debt?

In the actual Will, all property goes to the Trustee (me) with the exception of IRAs & 403bs. Then all of the cash and Investments (IRAs & 403bs) get split between the 2 heirs.

So, if I get this house in this town. It is a wash because I would sell it and pay off the loan correct? This is all confusing. We are speaking with the lawyer Wednesday.

Laymans take:

Generally the estate pays its costs including your fee as executor first, then it debts --how it addresses the note on home sort of depends.   Whose names are on note? 

There is No we speaking to lawyer --don't invite confusion--the named executor speaks with lawyer of her choice for estate. Rest of tribe stays out!

Keep in mind that as executor you want to collect or offset that $15K or so that #2 owes to decedant.

And while it makes no sense to have a freeloader in home until the dust settles-- but--the process of getting a tenant out may be such that if #2 is willing to pay about 96% of true value of home --and adjusted for back debt and note then why not let her buy it out of her net---but don't give her 8 months of free life in it.

Again my guess that GM;s last minute instruction as to home is NOT a valid change to will--but #2 is sure to disagree--thats her choice to disagree and fight--at her expense.

Taking #2 off the deed sounds a bit odd and to do so with intent of defrauding creditors might make a mess --so  I'd discuss that with counsel and keep my yap shut elsewhere.

I'm curious as to what estates counsels views may be--repost when you get some more input?