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  1. #1
    Join Date
    Oct 2013
    Posts
    25

    Default How is a HELOC Debt Handled When One Spouse Dies

    My question involves estate proceedings in the state of: California
    My spouse recently passed away. There is a balance on the home equity line of credit. Is my spouse's estate liable for 1/2 the debt?
    Thank you

  2. #2
    Join Date
    Dec 2012
    Posts
    124

    Default Re: How is a HELOC Debt Handled When One Spouse Dies

    Are both names on the Heloc & house title?

  3. #3
    Join Date
    Sep 2010
    Posts
    19,901

    Default Re: How is a HELOC Debt Handled When One Spouse Dies

    Most likely the surviving spouse is 100% liable for the debt. How the house is titled is immaterial. The question is how the HELOC loan was written but I can almost assuredly guess that both spouses agreed to be liable.

  4. #4
    Join Date
    Oct 2013
    Posts
    25

    Default Re: How is a HELOC Debt Handled When One Spouse Dies

    House was jointly owned and both names were on the heloc. Heloc debt was all obtained while married. Wouldn't the heloc balance be allocated equally between the surviving spouse and the deceased estate?

  5. #5
    Join Date
    Sep 2005
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    Behind a Desk
    Posts
    98,846

    Default Re: How is a HELOC Debt Handled When One Spouse Dies

    Is the house being sold, with half of the equity being probated as part of the estate?

  6. #6
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: How is a HELOC Debt Handled When One Spouse Dies

    Quote Quoting gguubb
    View Post
    House was jointly owned and both names were on the heloc. Heloc debt was all obtained while married. Wouldn't the heloc balance be allocated equally between the surviving spouse and the deceased estate?
    Is his estate, or part of the estate other than the house, going to someone other than the spouse? That is the only scenario I can see where it could possibly make a difference.

  7. #7
    Join Date
    Sep 2013
    Posts
    833

    Default Re: How is a HELOC Debt Handled When One Spouse Dies

    It seems the debt is community and the community estate is responsible. There really is not a splitting just because of a death. Even the OPs separate property can be taken for the debt as I assume it was obtained during the marriage. The house is the security which is why Mr.Knowitall asked the question he did. Without all the facts, the particular question cannot be answered as the whole of the situation and why it matters is important. But, if one wanted to do what is "fair" or equitable, the asset that secures the debt is the portion that should be responsible for the debt. I suspect the OP is not intending to sell and does not particularly like the implications of the question.

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