Legal Question in Wills and Trusts in North Carolina

My dad died in 2003. He owned a trailer on about 3/4 acres of land in Lincoln County. My sister and I didn't want anything to do with the trailer and since my brother had lived there, he was going to keep it. He soon decided he couldn't bear to live there and moved out, but left everything in it. It was vandalized several times and everything was stolen. He had no insurance so there is a lean on the property for that. He owed federal income tax and county tax. Now the county has foreclosed and plans to sell it. My question is when they sell it, can that effect my credit because I'm listed as an heir? None of us (me and my siblings) are on the title for the property. The liens and taxes are more than the property is worth, but I don't want this effecting my credit I've worked so hard to maintain.


Asked on 12/16/11, 9:34 am

1 Answer from Attorneys

No. Unless your name was obligated to pay for the trailer, you are not responsible. The land is different. The lien I assume is only on the trailer, not the land. Lincoln Count will have a county tax lien on the land and whoever inherited the land is responsible for the real property taxes. If the land is sold, the proceeds would be applied to the taxes in order of priority.

Who owed taxes? Your brother? Or your father? Or both? You are not liable for the income taxes owed by your father or your brother. The only thing that I can see is that if your father died without a will, then you and your sister would be equal owners of the land along with your brother and all of you would be equally liable to pay the real estate taxes.

Why would there be a lien on the trailer if it was vandalized and there was no insurance? That makes no sense. It may be that many lenders require homeowner's insurance and if the homeowner fails to provide it the lender will get insurance (called foreced place insurance). It is horrendously expensive. However, if there was any damage to the property and this was not covered by insurance, then perhaps this would be included in whatever is owed to the finance company. Other than that, I don't understand why there is a lien.

What I suggest that you do is check your credit report at www.annualcreditreport.com and see if any tax liens are listed thereon. If so, you, your sister and your brother are going to have to pay for the reasl estate taxes so that the lien can be marked satisfied.

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Answered on 12/16/11, 11:34 am


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