Armand dies intestate (without a will) leaving behind his wife, Celeste, and two adult children from a prior marriage. Armand's estate includes a community property home in Baton Rouge. A lender approaches Celeste about refinancing the property. Under Louisiana law, who must sign the refinancing mortgage?
Correct Answer
B) Celeste and both adult children, because upon Armand's death the children become naked owners of his share
Under Louisiana intestate succession law (La. Civil Code Arts. 880 et seq.) and community property law, when a spouse dies intestate leaving descendants, the surviving spouse does NOT inherit the deceased spouse's share of community property outright. Instead, the surviving spouse receives a usufruct over the deceased's share of the community, while the descendants (Armand's two adult children) become the naked owners of that share. A usufructuary cannot alienate or encumber the naked owner's interest. Therefore, to refinance the entire property, Celeste (as usufructuary and co-owner of her half) and both adult children (as naked owners of Armand's half) must all sign the mortgage.
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Key Terms:
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