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In Florida, are there any legal ramifications to an executor

 
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Customer Question

In Florida, are there any legal ramifications to an executor of an estate if the deceased's property goes into foreclosure? Specifically a timeshare. Do you need to do a Renunciation and disclaimer of property even if the property belongs solely to the deceased and has not gone into probate.

Submitted: 364 days and 23 hours ago.
Category: Estate Law
Value: $30
Status: CLOSED

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Expert:  RobertJDFL replied 364 days and 23 hours ago.

Thank you for your question. After reading my answer, if you require additional information, press "REPLY" and I will be happy to assist you further.

 

Depends on the circumstances you're talking about. If it's a situation where the decedent's estate simply does not have the means to pay for the home so the personal representative (what Florida calls an executor) lets the bank take it back through foreclosure or a deed in lieu, no, there are no ramifications. The PR isn't personally liable for the debt. If you are talking about a situation where a PR mismanaged the estate and the result is that a home is foreclosed, they could be held civilly liable for the mismanagement of the estate/breach of their fiduciary duty.

There would be no need to do a renunciation/disclaimer of the property -typically where you see a renunciation done is where a beneficiary is entitled to an asset and doesn't want it.

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Category: Estate Law
Pos. Feedback: 98.4 %
Accepts: 1217
Answered: 4/12/2012

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Customer replied 364 days and 22 hours ago.

The property is paid in full. It is the yearly cost of the maintenance fees (if not paid) that will cause it to go into foreclosure.
Can the property management keep billing the estate or me (executor and widow) for the property? Am I, as the executor, financially obligated to keep paying for the mantainence fees even though the property hasn't been claimed through probate?
If I don't pay the fees and the property forcloses, will the forclosure reflect negative on my credit?

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Expert:  RobertJDFL replied 364 days and 22 hours ago.

You are not personally obligated to pay the debts of the estate and it can't reflect negatively on your credit. All you are doing as the PR is wrapping up the estate of the decedent (which would be only the assets titled solely in their name, if any). Now, if you are both on the timeshare contract, they can keep billing you and go after you for the maintenance fees.

Customer replied 364 days and 22 hours ago.

I am only listed as executor - not an owner.

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Expert:  RobertJDFL replied 364 days and 22 hours ago.

Then you don't have any liability. Have you contacted the timeshare and explained that the decedent has passed, and that their estate does not have the assets to continue paying the fees? Alternatively, can you sell off the timeshare (easier said than done in this economy, I know).

Customer replied 364 days and 22 hours ago.

I have contacted them and told them he passed. I have not told them the estate is not financially able to maintain the property however.
The timeshare was the only thing not in my name so the timeshare will have to go into probate. I am in AZ and the timeshare is in another state (FL) and the location is overpopulated with timeshares. I am not sure it will sell in this economy.
I am not even sure it will be worth the trouble.

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Expert:  RobertJDFL replied 364 days and 22 hours ago.

Another option to propose then would be for them to take back the timeshare with a deed in lieu of foreclosure. It would save them the hassle and expense of foreclosing, and you the time having to worry what will happen. I've never had the issue come up with a timeshare (at least not yet) but I have done this in estates that are not able to pay for homes, and was able to negotiate just returning the property to the lender.

 
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