Is the widow ultimately responsible for paying for a HELOC which is in her deceased husband's name only, or does this fall under his estate? She still lives in the house.
The loan must be repaid. When the borrower passes away, the estate becomes responsible for payment. That estate also has the assets of the borrower. The assets may be converted to cash to pay for the funeral and cost of probate, then debts are to be paid before assets are distributed to heirs.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
The loan must be repaid. When the borrower passes away, the estate becomes responsible for payment. That estate also has the assets of the borrower. The assets may be converted to cash to pay for the funeral and cost of probate, then debts are to be paid before assets are distributed to heirs.
