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NSW Trustee of Will - Does Payment of Debts Cover Mortgage?

Discussion in 'Wills and Estate Planning Law Forum' started by Shadow, 1 February 2015.

  1. Shadow

    Shadow Active Member

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    I am the trustee named in my mothers will. We both live in the same property and both of our names are on the mortgage. She is leaving her share of the property to me but there will still be a substantial amount left owing on the mortgage. She will also have money left in her accounts, from which she has left a certain amount of her savings to her grandchildren and whatever will be left over after paying debts etc will be left to my brother.

    My question is considering that her name is on the mortgage will this be considered as part of her debts and will any of her savings be used to go towards the payment of the mortgage.

    Thanks
     
  2. Tracy B

    Tracy B Well-Known Member

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    Hi Shadow,

    Any mortgage or other debt attached to the property will pass with the property. This means that the mortgage/debt will not form part of the general debt, but will be born by the beneficiary of that property (you). Her savings will not go toward the mortgage unless you refuse the property gift. In this case, the property will fall into the catch-all residuary estate (provided there isn't a second beneficiary named). In this case, if there are insufficient funds set aside to cover the mortgage, then her share in the house will most like be sold to cover the mortgage and any remaining proceeds be distributed among the residue beneficiaries.
     
    Shadow likes this.
  3. Shadow

    Shadow Active Member

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    Okay thanks Tracy :)
     

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