An encumbrance can have an impact on the property's value, use, or transferability. It is a term commonly used in real estate and financial contexts to describe any restriction, obligation, or burden that might affect the property or asset's ownership rights.
These encumbrances can be debts, outstanding loans, mortgages, property taxes, unpaid utility bills, or any other financial obligation the deceased may have had during their lifetime.
Encumbrances associated with a deceased person's estate can affect the overall value of the estate and how it is managed during the Probate process. Because the deceased's debt must be paid prior to distributing remaining assets, an encumbrance may prevent the Surviving Family from benefiting from the deceased's estate.