An overview of increasingly popular methods for attorneys to use probate or trust owned property to finance estate debt, pay attorney fees and to buy out other heirs’ interests.
Fiduciaries such as executors, administrators or trustee may borrow on behalf of the estate and sign for the loan in that capacity.Using the real property currently vested in an estate (or trust) to secure financing can resolve many problems can be solved in short order. As is the case in any loan, of course, a few conditions will have to be met to assure a smooth, orderly transaction as well as providing for all of the legal requirements of estate administration.
Mortgages are typically based on the remaining equity in the real property. This method is primarily used when goal of estate is to pay attorney fees, creditors, or to provide liquidity prior to close of probate.
