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Buachaill
Buachaill, Barrister
Category: Law
Satisfied Customers: 10527
Experience:  Barrister 17 years experience
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Hello My mother passed away 18mths ago. My mother had two

Resolved Question:

Hello

My mother passed away 18mths ago. My mother had two properties one which has been paid off and transferred into my name by my aunt the executor of my mothers estate. The other which needs to be sold but is now looking like it's not going to be sold enough to pay off mortgage.
My question is if this happens am I liable for my mums debt owed to mortgage company? Can this be transferred to the property I now own?
Submitted: 3 years ago.
Category: Law
Expert:  Buachaill replied 3 years ago.

Buachaill :

1. Can you please provide further detail. Did your Mum die leaving a will or not? If she left a will, what were the terms of her gifts to you? Did anyone else inherit? Who was the residuary legatee?

Customer: Yes my mum left a will. It was for her estate to be split equally between myself and my sister. I am currently buying my sister out of the first property as she needs funds. The first house was transferred from my mother to me and my sister in June 13. The mortgage on this property was paid off outright from insurance policies. It is the second property a flat which is looking like it won't sell for remainder of what's due in mortgage .I don't know what "residuary legatee " means please clarify.
Buachaill :

2. You will not be personally liable for your Mum's debt to the mortgage company if there is not sufficient on the second property's sale to pay off the mortgage. It will be your Mum's estate which will be liable to pay off the remainder of the mortgage. This debt owed by the estate will have to come out of whatever assets were in the estate at the time of death. It cannot just be transferred to the property you now own. HOwever, if the executor made a mistake in transferring out a property without there being enough in the estate to pay all debts, then the executor will be liable. However, if there are assets in the estate, it means that the person who takes the residue left after the specific bequests have been given out - known in law as the residuary legatee - who will have their share diminished.

Customer: Ok so potentially my aunt the executor could be personally liable? Is there any actions she can take now to avoid this. She transferred the house to me and my sister in good faith assuming that the other property would sell there should have been 20 k equity. However as retirement property has been on the market for 18 months now and other properties of same type in building not being sold, there is doubt as to wether that 20 k equity can be realised if at all. Meanwhile service charges are mounting up.
Buachaill :

3. Yes, your aunt the executor could be liable. And yes, your aunt could sue you if there was an overpayment.

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