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Should An Executor Also Be A Guarantor?

November 4th, 2008

Is it wise for an executor of an estate to also be a guarantor when his loved one takes out a loan or other line of credit? According to sources on California estate settlement, if an executor is also a guarantor, he can be held personally responsible for a decedent’s debts, which is usually viewed as a negative. However, it may be desirable on the part of an executor to be personally responsible for his loved one’s debts so that certain property with either intrinsic or sentimental value, or both, can stay in the family instead of being sold off. To this end, it is important to note that the executor can only become guarantor for a line of credit at the time for which it is applied.

Entry Filed under: Reference