Legal Question in Real Estate Law in Illinois

He can either quitclaim an interest to you now, or provide for you in a will. He should contact a local attorney to determine what is best for the situation.

Illinois answer. Illinois law governs if that is where the property is located.

He leaves it to you in his will and when he passes the house goes through probate. You and the mortgage company work something out and the judge issues a "Judge's Deed".

He could put the house into a trust or change the title to joint tenancy with right of survivorship (and not as tenants in common). In either case the permission of the mortgage company would be required. I think jtwros would be best if the mortgage company feels that you are credit worthy. That take the house completely out of the probate estate.

PS You cannot avoid probate entirely - your grandfather can speed it up and reduce the size of the probate estate, but the courts still have to check of outstanding debt.

I would recommend that the parcel be put in a land trust now. Way cheaper that flipping it out of a probate estate.