Legal Question in Real Estate Law in New Jersey
question about a home to be inhertied
My brother and I stand to inherit my moms home in NJ. After the home becomes ours would we both be able to use that home as a colatteral or mortgage against the home so we can individualy purchase our own homes seperatly (home is worth appx 1.2 m or would it be better just to sell the home and take my share ( the home generates income it is a 3 family home)
2 Answers from Attorneys
Re: question about a home to be inhertied
If the home has no mortgages on it, you probably can borrow against it and then use the money as you see fit. However, if you inherit a home worth 1.2 million dollars, you will have to file and pay estate taxes to New Jersey. You may have to sell the house to pay the taxes. You, your brother, and your mother should get some legal and tax advice on how to minimize the impact.
Re: question about a home to be inhertied
Sorry, but you need to do calculations both ways to see which makes the most sense financially. You need to factor in things such as if you can both obtain mortgages yourselves (unless the money you borrow pay off both houses), if you can support all 3 mortgages with the rental income.
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