Legal Question in Real Estate Law in Pennsylvania
house/mortgage in my father's name
Hi. To make a very long story short, we had financial trouble and now live in a house where my 79 year old father holds the $199,000 mortgage. We pay the mortgage/rent every month and could not get a mortgage. I have other siblings and a mother whom I want to financially protect, as well as my wife and children. My father and mother's combined estate is roughly worth $1.2Million and I believe they have an A/B trust. Only my father's name is on the mortgage. If he should die, what happens? Insurance, since he is in great shape, is attainable but obviously very expensive. Will the estate need to pay off the mortgage if he dies or will it just transfer to my mother? I don't want to have to live in fear of losing the house or, put others in position to liquidate nonliquid assets. Insurance, if approved would be about $800/month for $200,000 and $410 for $100,000. Also, would it be any protection for me to sign some type of 3 year rental/lease agreement? Would this afford me time to seek out a mortgage-which I should be able to get in 3 years time? All of us get along extremely well and would do anything for each other. I just want to protect ourselves over the next few years. Any help would be greatly appreciated. Thanks in advance.
1 Answer from Attorneys
Re: house/mortgage in my father's name
First off your father's will control's the distribution of the assets upon his death, including the house, unless of course your mother is listed on the deed and mortgage (if any) if not, any and all debts that your father has must be paid out of his estate first, including the mortgage (if any remains following your father's death).
As for insurance, depends on if you think it is worth it, the only way you win with insurance is if you die. In other words maybe take the additional $800 a month and put it towards the mortgage, also without your father updating his will whatever $$$ you place towards the house will be distributed based upon his will and not upon your expectations...even though you might get along now, money has a way of making family and friends fall apart, I recommend placing your needs in writing as soon as possible. I also recommend retaining an attorney ASAP.
My office can be reached at 412.731.0865 or www.AlleghenyAttorneys.com
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
