Legal Question in Wills and Trusts in Georgia

My mom just passed away after 5 years of bad health. She has been in assisted living for the last 6 months. She owes $88,000 on her house and it is only worth $55,000. There is only $12,000 left in her savings account after paying for the furneral. We have tried to sell the house for years. Can the mortgage company come after what mom has left or can I go ahead and divide it up? I contacted the mortgage companyn and of course they want someone to continue paying. No one wants that debt. I am POA but my name is not listed on the mortgage or home.


Asked on 3/15/11, 2:31 pm

3 Answers from Attorneys

Scott Riddle Law Office of Scott B. Riddle, LLC

What do you mean "divide it up?" Divide what up? Creditors get paid before heirs, so breaching a fiduciary duty and improperly taking estate funds and other property is the best way to make sure you have personal liability.

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Answered on 3/15/11, 2:36 pm

Have to agree with Attorney Riddle. There is nothing to divide up. POA ends at death, so that is not relevant.

What matters is the will. Who is the executor? The will has to be probated. Claims are paid in order of priority. Since there is not enough money to go around, funeral expenses are paid first, but only to the limit allowed by law. The executor is going to need the assistance of legal counsel and the executor should see one immediately. If there is on will, you or whoever wants to do the job still needs to get to an attorney. Where there is no will, the person in charge is called the administrator.

It may be just better to deed the house back to the mortgage company in lieu of foreclosure since your mother is upside down. However, the executor/administrator, the heirs and the estate attorney should make that decision after review of all the facts.

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Answered on 3/15/11, 2:55 pm
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

The POA died when your mom did.

You need a lawyer. Let me stress that.

To divide her estate, and even to sell the home, neither is possible without a probate. Since creditors get paid ahead of heirs, the $12,000 could end up with the mortgage company. A good estate attorney may be able to negotiate a far better outcome.

Feel free to call me to discuss details.

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Answered on 3/15/11, 3:07 pm


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