Legal Question in Wills and Trusts in Wisconsin
inherited land
I just recently received 120 acres of land in Wisconsin as a gift that is tax free. I set up a right to life contract for my mother and grandmother. My question is Can I use the equity of part of the land to secure a loan to fix up the prorperty, even though I have a right to life contract on the property? Also how do I approach a bank with this quick claim deed?
1 Answer from Attorneys
Re: inherited land
The two people with life estates could agree to subordinate their interests to a mortgage on the property. If the mortgage were ever foreclosed, they could lose their interest in the property, as well. To grant a loan, the bank will most likely require title insurance verifying you own the property, as well as the existence of the life estates. That usually costs a couple hundred dollars and would be added to your loan costs. If you did the deed correctly and set up the life estates correctly, there should be no problems. If anything needs to be corrected, as long as the two life tenants are alive and competent, corrections could be made. The title insurance will be your guide in that regard.
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