Results 1 to 9 of 9

Hybrid View

  1. #1
    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?

  2. #2
    Join Date
    Sep 2005
    Location
    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?

  3. #3
    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.

  4. #4
    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.

  5. #5
    Join Date
    Oct 2013
    Posts
    25

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

    thank you all for your answers. 1/2 of the estate is going to his children from his first marriage. I have assummed the mortgage balance on the property along with the property. But the equity line still has a balance on it with the property as the secured asset. the HELOC was run up with personal items purchased by deceased spouse during the marriage. So I guess bottom line that I was wondering about was does the HELOC go with the property, or is it a community debt to which both spouse's estates owe 1/2. thank you so much!!!

  6. #6
    Join Date
    Sep 2010
    Posts
    19,901

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

    You need to run this with the lawyer, you still have not indicated enough information. We can only guess. If the house was community property, it matters not what the will states. The house is the husband's. While you may be able to collect something from the estate be known that that means nothing to the lender. If the husband signed the loan, the bank can come after him as if he was the only person involved in the transaction. Where the money was spent after it was borrowed is largely immaterial.

    1. Sponsored Links
       

Similar Threads

  1. Grandparents and Third Parties: Can a Stepparent Get Visitation Rights if their Spouse Dies
    By James527 in forum Child Custody, Support and Visitation
    Replies: 5
    Last Post: 02-12-2014, 05:24 AM
  2. Foreclosure: HELOC in Deceased Spouse's Name, Bank Will Foreclose
    By targetman in forum Buying, Selling and Conveying Real Estate
    Replies: 3
    Last Post: 05-25-2013, 11:30 AM
  3. Financial Obligation of Pre Marital Debt After Spouse Dies
    By Shave in forum Estate Planning, Administration and Probate
    Replies: 1
    Last Post: 12-02-2009, 11:34 AM
  4. Disability Benefits: Can SSI Be Claimed for Child Support Arrears if Ex-Spouse Dies
    By kialadie55 in forum Social Security Law
    Replies: 2
    Last Post: 03-23-2009, 02:32 PM
  5. Deeds - Quitclaim: Quit Claim In Case Spouse Dies
    By ajsill in forum Real Estate Ownership and Title
    Replies: 3
    Last Post: 05-29-2008, 05:24 AM
 
 
Sponsored Links

Legal Help, Information and Resources