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<p class="MsoNormal"><b><span style="font-family:"Arial",sans-serif">Without knowing the language of the gift, I would assume the giftee takes subject to the loan. A will could say otherwise: i.e. “all debts and liens payable from the residue” or words to
that effect.<o:p></o:p></span></b></p>
<p class="MsoNormal"><b><span style="font-family:"Arial",sans-serif"><o:p> </o:p></span></b></p>
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<p class="MsoNormal"><b><span style="font-size:11.0pt">From:</span></b><span style="font-size:11.0pt"> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Inge Fordham<br>
<b>Sent:</b> Wednesday, July 7, 2021 4:08 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> [WSBAPT] Who Pays Debt on Vehicles?<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Colleagues,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Hypothetical. An estate has 0 liquid assets to pay debts or expenses of estate administration. The estate assets are comprised of real property, vehicles, and other tangible goods. Decedent’s will leaves
all vehicles to John Doe and the residual to John Green. There is an auto loan against a vehicle in the amount of $10k. Does John Doe take the vehicle subject to the $10k loan (i.e., the gift is essentially one of equity in the vehicle and John Doe is responsible
for the debt owed) or is John Green responsible for paying the debt (as the residual beneficiary)?
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Thanks,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
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<span style="font-size:10.0pt;font-family:"Times",serif;color:black"><img width="96" height="95" style="width:1.0in;height:.9895in" id="Picture_x0020_1" src="cid:image001.png@01D7735B.66FFB050" alt="uc%3fexport=download&id=1W3rEcChy0_E0cCfV5up02mkhwnL6eWIs&revid=0B4P5JoIHdbFaR29EbHlRWHFseFV5STZpSUVGeUNPWldkVDFVPQ"></span><span style="color:black"><o:p></o:p></span></p>
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<b><span style="font-size:13.0pt;font-family:"Cambria",serif;color:#203864">Inge A. Fordham | Attorney</span></b><b><span style="font-size:13.0pt;font-family:"Cambria",serif;color:black"><o:p></o:p></span></b></p>
<p class="MsoNormal" style="margin-bottom:3.0pt"><span style="font-family:"Cambria",serif;color:black">Fordham Law, PLLC<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:3.0pt"><span style="font-family:"Cambria",serif;color:black">3218 Sixth Avenue | Tacoma, WA 98406<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:3.0pt"><span style="font-family:"Cambria",serif;color:black">Office: (253) 348-2657 | Mobile: (206) 778-3131<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:3.0pt"><span style="font-family:"Cambria",serif;color:black"><a href="http://www.fordhamlegal.com">www.fordhamlegal.com</a>
<o:p></o:p></span></p>
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