We often get asked questions as a Ponte Vedra Beach Probate Lawyer about inheriting debt. Just as you can inherit property and other assets from a Florida Estate, it is possible to inherit the debt that is associated with the property.
When the debt associated with an asset is worth more than the asset itself, one must decide whether they want the asset or not. Just because you inherit something does not automatically mean you are financially responsible for the debt which is associate with the property.
In Ponte Vedra Beach and around Florida we are finding that homes often are worth less than the amount of debt remaining on the mortgage. Just because you inherit the property does not make you responsible for the debt. You may abandon the property in the Florida Probate or decide not to even probate the property or estate until the item which are upside down are dealt with in legal proceedings such as a Florida Foreclosure Case.
The only way a beneficiary is responsible for the debt is if they were a co-signer on the debt or signed a new document which created a financial responsibility.