Legal Question in Wills and Trusts in Indiana
My mother recently passed away. In her will she left a life estate in her home to her husband. The residue of her estate she left in equal shares to me, my borther (both adults) and her husband. As I understand it this gives her husband the right to live in the home for the remainder of his life, if he chooses.
Their is a mortgage on the home. What is my and my brothers financial exposure if her husband fails to pay the mortgage or otherwise defaults on the loan. And what happens in the event that her husband simply whishes to move out?
1 Answer from Attorneys
You have no legal liability for payment of the mortgage, unless you've signed on to it. However, if the loan goes into default, the mortgage company could foreclose on the property. It could then be sold so the bank can get its money back. If there is any money left after the sale, the excess would then go in equal shares to you, your brothers and your mother's husband. Realize that such sales are often very "cheap" sales, so your equity could be seriously diminished by a foreclosure. Also, the costs of the foreclosure action, including attorney fees, would be paid by the sale of the home, which, in essence, means you are paying, from your share of the home, for the foreclosure action. (There are other remedies and possibilities, but this is not the place to discuss them,)