Deceased Estate

[Melbournian]

Is it possible to have home loan still open in the deceased name even after having the probate done?

just wondering as i'm an executor of the will and the beneficiaries althought they want to property to be transfered do not wish to it to happen straight away.

 

[Terryw]

Interesting question.

They don't cover these practical questions in law school. I would think the bank could probably call in the loan, but in practice they probably wouldn't do much about it as long as the repayments were being met. Technically the executor steps into the shoes of the deceased until all assets of the estate are sold/distributed.

 

[tarek85]

I doubt it - entering into a loan agreement requires a person to be alive. This is basic contract law. However, if there is a testamentary trust created by the will, the trustee of that trust seek finance for the benefit of the trust provided the will allows it - i.e. for investment purposes.

If you need a property/probate lawyer - I work with a specialist team. Contact me.

PLEASE NOTE: This is not to be taken as legal advice.

 

[Terryw]

I doubt it - entering into a loan agreement requires a person to be alive. This is basic contract law. However, if there is a testamentary trust created by the will, the trustee of that trust seek finance for the benefit of the trust provided the will allows it - i.e. for investment purposes.

If you need a property/probate lawyer - I work with a specialist team. Contact me.

PLEASE NOTE: This is not to be taken as legal advice.

There are no new contracts being entered into. Just a continuation of the existing one.

 

[Melbournian]

i just left the loan open so that the beneficiaries can sort out their stuff first.

The deceased still has an account open with cash inside in which the repayments are coming from.