QUESTION
Can a 401k used to pay an estate's debts?
Asked on Oct 02nd, 2015 on Wills and Probate - New Jersey
More details to this question:
State is New Jersey. My deceased parent had a 401k which named myself and sibling each as 50% beneficiaries. My deceased parent owned a home under mortgage which was 90% paid off, but is now pending a foreclosure sale. Can the 401k be used to pay off the balance on the mortgage (and thus prevent foreclosure)? There are no other assets. I am the executor.
1 ANSWER
2 Awards
You can use the money form the 401(k) but you are not required to do that. If the property went through foreclosure there would still be equity in the property. If you are trying to keep the house, then use the 401(k) money to bring the mortgage current. If not, try to sell the property for more than the amount of the mortgage. Call my office if you require more assistance.
Answered on Oct 13th, 2015 at 5:14 PM
Diana L. Anderson, Certified Elder Law Attorney This response is not legal advice and does not establish any form of attorney/client relationship