QUESTION
GA: My father-in-law died and was cosigner on a student loan. Can creditors come after property titled in both father and mother-in-law''s name?
Asked on Jul 04th, 2012 on Estate Litigation - Georgia
More details to this question:
This is in Georgia.
My father-in-law left a will leaving everything to my mother-in-law. However, all the property was paid in full and listed both names. The house deed states joint ownership with right of survivorship. The only thing we can find that might need to be probated is a student loan he cosigned for his granddaughter. That granddaughter has not made any payments and the loan is in default. She will not return our calls or talk with the creditors.
Since all the property was in both names, can the loan creditors come after my mother-in-law''s house? Do we need to file papers to get the house retitled in just her name?
Thanks.
1 ANSWER
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My condolences to your family on your loss. If all of your father-in-law's assets were either (1) held as joint tenants (as it appears the house was held) or (2) passed to a designated beneficiary other than your father-in-law's estate (as would often be the case with life insurance, IRAs, or 401(k) accounts), so that there truly are no assets that need to be dealt with through his probate estate, then you would not need to probate anything just to deal with the debt issue. Your mother-in-law also does not have to file anything to take your father-in-law's name off the house, since it should have automatically become hers. However, she could file an Affidavit by Surviving Joint Tenant, if desired, to clarify in the deed records that she is now the sole owner of the house. I would strongly suggest that she consult an experienced probate attorney, however, just to ensure that she's not missing anything and that she's doing anything which may need to be done. If there are any assets in the estate, she may be able to file a year's support claim and get the assets out of the estate even if the student loan debt is owed. But her time for a year's support claim is limited, so she should get good legal advice as soon as possible.
Answered on Jul 10th, 2012 at 8:40 AM