What happens if a person passes away during the sale of their home without a Will?

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What happens if a person passes away during the sale of their home without a Will?

The children are all adults and have agreed to split the proceeds after paying off the current lender, however the new lender won’t release the funds without a legal statement that there are no other heirs (including other legal entities). Further, the title company won’t make the statement because they say it puts them in the position of a lawyer, which they can’t do.

Asked on March 1, 2013 under Estate Planning, Washington

Answers:

Catherine Blackburn / Blackburn Law Firm

Answered 8 years ago | Contributor

The title company is correct.  You need to consult a probate lawyer in your area.  Did the deceased sign all of the closing documents before his or her death?  If not, I would expect the title underwriter and lender to require someone with legal authority to sign.  Also, the state and federal governments have an interest in making sure that all taxes are paid.  This is not something that title companies do.


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