Legal Question in Wills and Trusts in California
My mom who is getting up in age has a home with a balance and the loan is only in her name. Her husband died 14 years ago and she has made a living trust listing myself (son), my brother and my sister as the only heirs. If and when she passes, are the three of us liable for that loan equally and are there any gift or inheritance taxes to be paid? The home is worth about $350,000 with a balance of $260,000.
1 Answer from Attorneys
You are not on the deed of trust, so they can't make you personally pay the mortgage, but if you don't, the lender can foreclose. Sounds like there's enough equity that you'd want to prevent that. No inheritance tax unless your mother's estate is worth more than $5M, and you won't have any capital gains tax, either, if you sell the house, since you'll get a stepped up basis when your mother dies.
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