Legal Question in Wills and Trusts in Pennsylvania

how can I protect my family

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.


Asked on 12/07/04, 10:50 am

1 Answer from Attorneys
Mark Johns Mark Johns, Esquire

Re: how can I protect my family

If your father has lent you the money and has recorded the mortgage, that asset would transfer to your mother on his passing. You should be getting recipts for the money you are paying. You may ask that in lieu of other testimentary gifts that the mortgage be cancelled on the death of the last of your parents to pass. If you are not the recorded owner of the property you definitely want a written lease/ lease with option to purchase in the event something happens. I offer free consultations.

Read more
Answered on 12/07/04, 11:17 am


Related Questions & Answers

More Probate, Trusts, Wills & Estates questions and answers in Pennsylvania