Follow
Share

I have a question and hopefully someone has an answer or can point me in the right direction. My dad has a house that my brother has lived in for the past 20 yrs. He has been making the house payments. My dad has a will stating the house would go to to my brother when my dad passes. Any suggestions would be greatly appreciated. Thank you!!

This question has been closed for answers. Ask a New Question.
Find Care & Housing
I would just leave it as is if it will pass with no problems. There will be no tax burden if inherited directly. The only thing I would have worried about in the arrangement would be what if Dad had to go on Medicaid. If Medicaid is not a factor, then no worries.
Helpful Answer (0)
Report

How abut a Living Trust? Or add his son to Title, as Joint Tenants with right of Survivorship?
Helpful Answer (1)
Report

The bank is going to want the original loan paid off -- which can be done, technically, by refinancing. I hope your brother has decent credit. If there's enough equity in the house, his credit can be pretty marginal, but still . . .

For instance (exaggerated): House is worth $250,000. There's a mortgage of $50,000 on it. It won't take stellar credit to get that mortgage at all. If he owes $235,000? He's going to need good credit.

It will help him TREMENDOUSLY that he's been paying the mortgage. With his own checks, I assume? Good job.

If you can find a copy of the mortgage documents, look for a paragraph entitled Acceleration Clause or some-such.

If your dad is still competent, you can bypass the will by putting the house in a land trust with dad as the principle beneficiary (owner of the house) and his son as contingent beneficiary. It doesn't cost much. Check with an attorney since I assume every state is different.
Helpful Answer (1)
Report

No, he will be able to stay in the home. The only thing he will have to work through, from what you wrote, is the mortgage. I don't know how the bank will work that. It would be nice if he could just continue paying the existing mortgage, but the bank may insist on a new mortgage.
Helpful Answer (1)
Report

my dad is on medicare not Medicaid so there shouldn't be any claims there. And yes there is still a mortgage on the home. During the probate period will my brother have to move out of the house?
Thank you for your help!
Helpful Answer (0)
Report

Yes, it is all he will need if your father has not been on Medicaid. There will be some technicalities. Anyone who will have a potential claim on the house (heirs) will sign a form to relinquish any claim. When the will it filed, there will be a probate period. Around here the probate period is 6 months. If there are no claims against the house in that time, the house will belong officially to your brother.

Is there a chance that Medicaid or any other company will have a lien on the house? If there is a mortgage, then your brother will have to work things out with the mortgage company, since they do have a claim on the property.
Helpful Answer (2)
Report

This question has been closed for answers. Ask a New Question.