Help---

[timandchristy]

I have been told that in the state of GA that the heirs can be held responsible for the deceased's mortgage. The mortgage comp required a life insurance policy to pay off the mortgage and there was one. The administraor received the insurance money in Feb yet still has not paid off the house. The administrator has also now let the homeowners insurance lapse. Now the house is uninsured and has a mortgage of around 80000. If something happens to the house are we as heirs responsile for the mortgage?

 

[dee_dub]

I thought I replied when you first posted this a while back, but I don't see it. ANYways...

You as heirs are generally not liable for the estate's debts, including the amount owing on the mortgage. The administrator is responsible for collecting any money owing to the estate (i.e. the insurance) and paying out the debts (i.e. the mortgage). The executor is also responsible for maintaining the property of the estate, including acquiring insurance on the property where necessary. If something happens to the house, it will be the administrator who is responsible.

Now, let me ask you this: who's the administrator, and what has he or she done with the life insurance proceeds? If he or she has given them to the heirs instead of paying out the mortgage then the bank might have a claim to the funds.

 

[timandchristy]

The daughter (my sister in law) is administrator. She says that she put the funds in a money market account. She was trying to make sure that all the heirs got as much as possible. We were supposed to clean out the house and put on the market but that has yet to happen. (The house has been partially emptied. There is nothing of any value, just a bunch of stuff that will most likely end up in the dump. She wants her siblings to help clean it out but does not plan a day to do it, just calls the morning that they decide to go and expects everyone to come. My husband and I have offered to go and get it done. We could do it in a day but she will not give us a key. Whenever we question about anything to do with it her husband gets a little defensive. We went to the court house and got copies of all the paperwork. We had never received a copy of the paper that we had to sign. Isn't there some type of paperwork that will have to be filed at the one year mark? Does she have to show where the money has gone? At this rate it will all be spent on utilities and mortgage payment. What if the house does not sell for the amount owed? Is there a time limit for finalizing an estate?