MBE Rules · Wills, Trusts & Estates
No Exoneration
Cal. Prob. Code § 21131
The rule
A specific devise passes subject to any lien or mortgage on the property at death; a general directive to pay debts does not require the estate to pay off the encumbrance.
In plain English
The No Exoneration rule means that when a specific piece of property is left to someone in a will, it comes with any existing debts or liens attached to it. The estate is not required to pay off these debts before the property is transferred to the beneficiary.
Worked example
A testator leaves their home, which has a $200,000 mortgage, to their daughter in their will. Upon the testator's death, the daughter inherits the home but must also take on the mortgage debt. The estate does not pay off the mortgage, and the daughter receives the property subject to the existing lien.
Memory hook
Inherit the property, inherit the debt!
The trap
Exams may include language suggesting that the estate should pay off debts, leading students to mistakenly believe that the No Exoneration rule does not apply. Watch for terms like 'general directive' that can mislead you.
How examiners test it
Questions often present scenarios involving specific devises and encumbrances, testing your understanding of whether the estate is responsible for paying off debts before property transfers to beneficiaries.
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More Wills, Trusts & Estates rules
- Co-Trustees · Cal. Prob. Code § 15620
- Trustee Removal · Cal. Prob. Code § 15642
- Formal Will Requirements · Cal. Prob. Code § 6110
- Spendthrift Exceptions · Cal. Prob. Code §§ 15305-15307
- Ademption of Specific Devises · In re Estate of Newsome (1967) 248 Cal.App.2d 712
- Intestate Succession · Cal. Prob. Code §§ 6400-6414