Property Secured by a Loan
Any testamentary gift of
property that has been given as security for a loan is given to the
beneficiary with the loan in place.
For instance, mortgaged real
property or a car with remaining loan payments will be given to the
beneficiary subject to the amount still owing on the associated loans.
The beneficiary becomes responsible for paying the loan when the property is
received. However, the terms of many loans will require the new owner to pay
the balance of the loan when taking possession and the beneficiary may be
required to obtain a new loan and use the proceeds repay the existing loan.
See: Property Controlled By
Wills;
Property Not Controlled By
Wills
