Michigan  |  Wills and Trusts

Legal Question

Asked on: 5/21/07, 12:04 am

estate credit card debt

Our parents both passed away last year. There was no will and the estate is in probate.

The ''estate'' consists of my parent's home, which is paid for, with a market value of approx. $240K. The only creditors are credit card debt of around $40K.

Question.. if we sell the home to someone for 1 dollar with the proceeds of the sale of the home distributed to the creditors by probate court would we be free of the credit card obligation.

1 Answer

Answered on: 5/23/07, 5:47 pm by Regina Mullen

Re: estate credit card debt

The credit card company would have a right to challenge such as sale as a fraud. You might do better to negotiate this, but chances are if the debt is valid, the estate has an absolute obligation to pay it from the arms length sale of the house.

Otherwise, the trustee may end up owning the credit card debt personally.

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