Legal Question in Wills and Trusts in Missouri

Beneficiary deed - 2nd mortgage on home

Before our mom passed (3/30/5), she set up a Beneficiary Deed for her residence to be passed on to four of her five children with the understanding it would be used as a residence for the 5th child who is developmentally disabled, receiving Soc. Sec. Benefits. We have yet to execute the transfer of property. She had a hardship (interest free) 2nd mortgage with a lender. We have continued the payments. There is also a small (@$1,000) lone with a bank where the house is under lien.

What are our financial responsibilities regarding the debts once we execute the beneficiary deed? We have no other estate finances. The home was the only asset.

Any answers you can provide pertaining to this information is greatly appreciated. I look forward to your answer.

Thanks,

--name removed--Shahan


Asked on 3/09/06, 2:53 pm

1 Answer from Attorneys
Bryan Lade None

Re: Beneficiary deed - 2nd mortgage on home

My general first impression is that if the property is encumbered (has a lien or mortgage on it) when you took ownership of the property, then as the owners you are responsible for satisfying the debts related to the property. Keeping up the payments or otherwise paying them off will be necessary to avoid default and possible foreclosure.

Without more details I cannot fully answer your question. Please contact by phone if you have more questions.

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Answered on 3/09/06, 4:35 pm


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