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Collection on a Deceased Grandfather

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lesliherzog

Junior Member
What is the name of your state? Texas

When my grandfather passed away 3 years ago, he had purchased a vehicle that was turned back into the dealership. We were under the impression that the family would no longer be responsible for the vehicle since it was in his name. It is now 3 years later and a collection agency is contacting me and my grandmother threatening to place a lien on their home. What are my options? Can they do that if the house has been probated in my grandmother's name?
 


justalayman

Senior Member
without knowing all of the probate details, it is impossible to tell you if they have any claim. A creditor has a right to make a claim against an estate but if there is nothing in the estate to pay them with, then they cannot collect anything.

If there were assets available to pay the decedents debts and you circumvented the process that would have allowed them to make a claim, then they do have the right to make efforts to make a claim still.
 
Was probate opened on Granddad's estate? If so, there should have been notices sent to certain creditors and a general notice published to all creditors. If so, you may also have an argument that the creditor is out of time.

If an attorney was involved, call them and ask about the notices.

Write a nice letter to the creditor, indicating that grandpa is deceased, the estate is closed, and include the date of publication of the notice. That "may" be enough to convince them to go away ...

if not, as correctly suggested (and particularly if there was an inventory filed in the estate which showed assets available for creditors) you may here from them again.
 
Respectfully, not the issue. We need to know if Grandma lives in homesteaded property; if so, it can't be reached, even by a community debt. A homestead in Texas is completely exempt (all th time, but specifically in probate - it passes to the surviving spouse and children free of all debt).

Secondly, the surviving spouse is not liable forever; it is true that debts can be asserted against non-exempt community property assets in the probate proceeding. However, if creditors are properly noticed, and/or there are insufficient non-exempt assets, the estate can be closed.
 

BlondiePB

Senior Member
Respectfully, not the issue. We need to know if Grandma lives in homesteaded property; if so, it can't be reached, even by a community debt. A homestead in Texas is completely exempt (all th time, but specifically in probate - it passes to the surviving spouse and children free of all debt).

Secondly, the surviving spouse is not liable forever; it is true that debts can be asserted against non-exempt community property assets in the probate proceeding. However, if creditors are properly noticed, and/or there are insufficient non-exempt assets, the estate can be closed.
This section, debt collections, is not my fortay. What I do know is that each state has a SOL on debt collections which would make the surviving spouse responsible for the debts of her deceased husband.

What I know about homesteaded property is that it is exempt, depending on one's state, when bankruptcy is filed. Until then, a judgement can be placed on the property.
 
Texas ... its like a whole other country

(or so says our advertising campaign).

Texas' homestead act (dating back to when Texas was, literally, its own country) is unique amongst the 50 states. The act makes homesteads (provided they are of a certain size, not relevant here) absolutely exempt, even in probate. It's even in our state constitution! The Texas probate code provides that the homestead passes to the surviving spouse and minor children completely free of all debts of the estate.
 

BlondiePB

Senior Member
(or so says our advertising campaign).

Texas' homestead act (dating back to when Texas was, literally, its own country) is unique amongst the 50 states. The act makes homesteads (provided they are of a certain size, not relevant here) absolutely exempt, even in probate. It's even in our state constitution! The Texas probate code provides that the homestead passes to the surviving spouse and minor children completely free of all debts of the estate.
That there TX homestead is mighty big. :D

That's even better than here in FL which is pretty good. Thanks for the info and have a good night.
 

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