Sunday, October 28, 2018

Probate and a pre-nuptial agreement

Charlie married Olga in 1985 and one week before they got married, they signed a pre-nuptial agreement. The agreement had a clause in it that stated neither party would be responsible for the debts of the other party which accrued before and during the marriage. After they were married, Charlie then moved into Olga’s home. This home was solely owned by Olga. In 1995 - 10 years after they were married - Olga took out a home equity line of credit with a local bank. The line of credit was in the amount of $50,000 and it was secured by a mortgage against Olga’s home. Two years later, Olga went to her lawyer and made a will. The will specifically devised Olga’s home to her son but it also reserved a life estate to her husband, Charlie. The will also said that as long as Charlie occupied the home, he shall be responsible for and shall pay all expenses relating to the use and maintenance of the home which include but are not limited to the taxes, insurance, utilities and repairs. Elsewhere in the will, there was a paragraph which specifically incorporated by reference, the pre-nuptial agreement that Charlie and Olga signed in 1985. Then, Olga died two months later.

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