Equity Loan after Borrow is Deceased?

Question

My father has an equity loan on his house. I have a joint savings/checking, but not on the equity loan. I am Life Estate trustee. Upon death of my father, this house is to be given to my brothers. What happens to the equity loan at that time?

Answer 1

It needs to paid out of the estate. You can't give the house to your brothers until the title is free and clear and right now it has a lien on it from the equity line of credit.

good luck!

They won't know your father has died until you tell them. They will continue to bill him and as long as they are getting repaid, they really won't care too much. They will continue to bill your father. You can't transfer the property until the equity line of credit has been repaid, because until it has been repaid the title won't be clear.