Estate debt

by Elizabeth
(Winchester, VA)

Hello,

My mother passed away last October (2011) and there was 275K worth of debt secured with her home and a rental property being used as collateral. This debt was "interest only" and is due in full in February 2013.

My brother's son has just received a nice ivy league scholarship and he is choosing to decline his half of the estate or set it up in a trust for his son (who is just going to college) to be able to receive when he is 25 years old.

So, in order to pay the debt owed, we are going to sell timber from our farm, jewelry and possibly some land. My brother again does not want his name on any of this leaving me as the only player.

I cannot afford to take this as personal income and be taxed on it. Is there a way to escape heavy taxes if this is being used to pay off the deceased debt? The estate was closed officially last month as our attorney said that the bank didn't call in those loans and we have paid all other bills.

Our mother and I are both residents of Virginia and my brother lives in Pennsylvania.

Any suggestions you can offer would be greatly appreciated!

Comments for Estate debt

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Apr 04, 2018
Lost the house my mother left me
by: Suzanne

Lost the house I grew up in that was in bad shape in her will and my brother probated the deed to me. With a a second mortgage that I pay for for 10 yrs and I was waiting on disability but I rented out rooms and worked 7 yrs of the loan had a car crash into the house lost my rental income and the I had a fire two yrs later and. Robbery.

So I had so much on my plate the stress made me very sick and the worrying so I didn't know what to do so I was taken advantage of because I am illiterate to the laws . And I lost my house my credit my future and my retirement. And now I have no income and I do not know what to do . I don't think the house should have been taken away from me.

But I didn't know how to fight for it and like I said I am so overwhelmed with paperwork I have developed major depression, PTSD , memory loss and I don't have any consulting or support . And now I can't at my bills electri pic gas , cable or rent . What am suppose to do . I worked hard all my life . And payed my taxes I'm 56 it a sin that I should be without shelter that I put work in to tah at house paid my homeowners insurance and everything was done over . And I couldn't even enjoy it .

I should be compinsated for the money I paid to my home owners insurance company. To take care of the damage that was done to the house. And the second claim I didn't get the money I incurred or the deposit that was left and givin to the land lord that harrassed me to the point where I could no stay there anymore. And found out she killed her husband 30 yrs ago and was convicted and I took her to court for the deposit and the judge and her attorney said it was the insurance company's money.

So why did she get to keep it? If I don't find a psyciatrist to help me I will never be the same.

Jul 12, 2012
Estate debt
by: Debtcollectionanswers.com

Elizabeth, tax issues are beyond the scope of this web site and not something we are knowledgeable about. I recommend you consult with your financial planner or tax CPA.

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