Legal Question in Real Estate Law in Maryland

A long time ago, wife bought house by herself and made payments for many years. She remarried and added new husband on ownership of house when his better credit could help refinance. Wife has young son from prior marriage. Wife wants her son to inherit the house if she passes, but son is still young and could not pay mortgage until he is at least 18+. New husband stated that if wife passes, he will let the house go, i.e., he won't pay mortgage but he will sell it. After discussion, new husband stated that he can sign a paper that says that when wife passes, ownership goes to son. How do they accomplish that? Should they record a new deed where wife becomes the only owner? Or wife and son become the new owners? How can son keep mom's house if son is still a child and can't pay the mortgage? Should a will or trust be created? What's the best option? Wife does not have a will or trust. New husband has kids from prior mortgage who want this house. Old husband (father of son) is not involved financially but may be interested in the house as well. Wife wants her hard work to go to her son. Thanks!


Asked on 3/01/11, 10:58 am

1 Answer from Attorneys
Cedulie Laumann Arden Law Firm, LLC

Thanks for your post. A number of different factors seem to be at play but the short answer is that a deed will need to be prepared. Since a spouse has certain rights in the deceased spouse's estate that cannot usually be signed away, a will or transfer solely to the wife may not be the best option. Transferring to a child has its own issues. However, the desired result can be accomplished one of two ways. One is to create a trust and transfer ownership into the trust. Another (and generally more cost effective) option is to do a life estate deed so that the ownership goes to the son after the death of the mother (but not before then). Note that with a mortgage the lender may need to give its approval before any deed transfer. Practically speaking, however, someone will need to pay any outstanding mortgage or the lienholder can foreclose. A good estate plan will include measures to fund this (perhaps by insurance).

You are welcome to call my firm at 410-216-7000 or another Maryland attorney of your choosing.

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Answered on 3/05/11, 8:36 pm


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