Home equity caution

The media is full of ads trying to get homeowners to borrow on their home, at low interest, and to use the $ to pay off high-interest credit cards, etc.

Just remember: Over half a million dollars of home equity in Nevada is exempt from judgment creditors. To use exempt money to pay off debt, such a credit card debt, which is subject to being discharged in bankruptcy is at the top of the “poor money-management ideas” bucket and rightfully so.

June 5

I’ll likely figure out how to index these Blogs someday, but meanwhile, I will just title them with the date written. I spent most of this morning, doing what I often do: handling living trust problems. This fellow, now deceased, had set up a living trust back in the mid nineties. He had babied it for about 10 years and then forgot about it. So when he died the other day, his bank account and his safe deposit box were in his own name. They were not owned by the trust. I am in the process of deciding between the two available opportunities: Simply file a probate and, as he left a pour-over will, have the probate court distribute the bank account etc to the trustee of his trust or, in the alternative, file a Heggsted suit. Heggsted is available here as the decedent actually listed his bank account and account number on Schedule A to his trust. Probate is simpler, but takes six to eight months. And the executor can open and inventory the safe deposit box. Heggsted is faster but is no help with the safe-deposit box as it is not listed on Schedule A as being owned by the trust. So a petition for an order authorizing my client to open and inventory the safe deposit box would be necessary.