What happens when a Will specifically devises real property to a person but the real property is mortgaged?
Under Minnesota statutes, the devise passes subject to the mortgage interest existing at the date of death.
What if the Will has a clause that says something like, “I direct that my just debts allowed in the course of administration of my estate be paid by the Personal Representative from the residue of the estate”? Would the Personal Representative then be required to pay off the mortgage from the residue and deliver the real property to the devisee free from the mortgage?
No, the devise passes subject to the mortgage regardless of a general directive in the Will to pay debts.
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