Legal Question in Wills and Trusts in Iowa
I am presently living in my childhood home with my husband and two children. We are renting from my father (mother deceased). He took a $40,000 mortgage out on the house 2 years ago. (assessed value: 61,900). We desire to stay in the home after my father passes away. My sister and I are joint beneficiaries. I am assuming that my husband and I will have to have the mortgage loan refinanced in our names (???). I also need to know how to determine what my sister would get as her share. I know that if we would sell the home after our father dies that she and I would pay off his debts and then split the remaining money between us. My sister feels that even if the purchaser is me that I still owe her 50% of what the house is worth. I say it is 50% of what is left after the debts are paid regardless of the fact that I am the buyer.
1 Answer from Attorneys
Without having any knowledge as to the specifics in a will, it's impossible to say what one person's share would be. If your father dies intestate each surviving heir is entitled to an equal share of the net estate after all debts are paid
With that said, if your father passes on, the assets (including the home) and the debts (including the mortgage) become part of the decedent's estate. Anything purchased from the estate has to be bought at fair market value so your sister's right.
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