Full question:
if thepersons who are in a forebearance areement dies and they are listed as a business doess the propert that is held by the bank become part of the estate.
- Category: Wills and Estates
- Subcategory: Probate
- Date:
- State: West Virginia
Answer:
A forbearance agreement allows the lender to refrain from foreclosing on a property during a specified period. If the person in the agreement dies, the outcome depends on how the property is titled. If the property deed lists a business name and not the deceased individual's name, the property is considered a business asset, not part of the individual's estate.
If the deceased person's name is on the deed, the property may become part of their probate estate, and the lender could have a claim against the estate. If the deed lists multiple owners as joint tenants with right of survivorship, the property automatically transfers to the surviving owner(s) upon death, bypassing probate.
In contrast, if the owners are tenants in common, the deceased's interest must go through probate to be transferred. Each tenant in common has an undivided interest in the property, and upon death, their share does not automatically pass to the surviving co-owners. Instead, it goes according to the deceased's will or state intestacy laws.
For specific legal advice, it’s best to consult with an attorney who understands your situation.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.