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If there is a debt to be paid in a trust and the person dies, does the debt transfer?

My husband's father had a share of property left to him in a trust, but before he would receive any money, if he wanted to sell the property, the "debt" had to be subtracted first. My husbands father passed away and the property went to my husband, but does that mean that the debt would transfer to him also?

Apr 21, 2015 by emma in  |  Flag
2 Answers  |  3 Followers
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Richard P Taylor Level 17

Emma,

If I understand your question properly, the answer would be yes. He would be transferred the equity and the debt of the property. That being said, there could be clauses within the trust documentation that states differently. It may be would be worth you time to contact an estate planning attorney to go through the trust documentation to make sure.

3 Comments   |  Flag   |  Apr 21, 2015
emma

Thank you for the help. I just found out that the copy of the will was outdated when the trust was drafted an notarized, what does that mean?

Flag |  Apr 25, 2015
Richard P Taylor

Emma,

Flag |  Apr 27, 2015
Richard P Taylor

Emma, I would take all of the information that you have and bring it to an estate planning attorney in your area. The details on these documents really matter and they need to be interpreted properly. A good estate planning attorney would be able to help you with it.

Flag |  Apr 27, 2015

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You are going to need an attorney to sort this out. Laws vary by state, by type of property and type of trust. There is no correct universal answer. Because this likely represents a good bit of money, it will likely be well worth your while to contact an estate planning attorney that practices in the state whose laws govern the trust. If you know the name of the law firm that drafted the trust, and it should be attached to the copy of the trust,, that is probably your best initial contact.

Comment   |  Flag   |  Apr 27, 2015 from Charlotte, NC

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