Inheriting a home with a mortgage when is probate not necessary that’s our topic today. Read this complete article and share it on social media.
- When Is Probate Not Necessary
- The Other States Have Different Laws
- Where There Isn’t A Trust
- Types Of Property Ownership
- Homeowner’s Association
- If The Property Still Has A Mortgage?
- Whether It’s Possible For You To Sell The Estate Property?
- If The Executor And The Beneficiaries Disagree?
- List Of The Most Important Documents
- Responsible For Paying Any Taxes
When Is Probate Not Necessary
The first thing you need to know is to know whether the probate courts need to get involved.
Here in San Diego the legal transfer of property from a decedent the person who’s passed away to a beneficiary.
A living relative can sometimes require court intervention and the process is called probate.
In the event that your loved one left a trust and the real property the home of the decedent is in the trust.
You may not have to go through probate.
But if they did not leave a trust and even if they left a will you’re probably going to have to go through probate. That’s here in San Diego.
The Other States Have Different Laws
However other states have different laws it’s important that you speak to someone that knows the actual laws in your state.
And when I say in your state I mean the state where your loved, one the decedent, lived and that was their state of residence.
That’s where you’ll have to go through probate perhaps.
Where There Isn’t A Trust
In the case where there isn’t trust or a will typically the closest living relatives will become the beneficiaries.
And technically they could have the ownership of the loved ones’ property.
In most cases when there is more than one beneficiary, that property the home of the decedent needs to be sold.
In order to get everyone the proceeds from their loved one’s estate.
Types Of Property Ownership
There are three types of property ownership that will help determine what happens with the real property of the estate.
And of course, that’s after the death of the owner. So, Let’s start.
1. Sole Ownership
Any property that is owned by only one individual is under sole ownership.
This property isn’t transferred to anyone else after the death of the owner unless it’s been stipulated prior to the individual’s death.
Property that is titled under soul ownership includes:
- Bank Accounts
2. Joint Ownership
Joint Ownership is a property that’s owned by multiple people.
This kind of ownership can be passed on to all or one of the people on the title certificate.
Sometimes you’ll see things that are called “Rights Of Survivorship”.
Joint ownership without rights of survivorship divvies up the property amongst the owners.
3. Title By Contract
This type of property is distinguished by the fact that it can be passed on to the beneficiaries upon the owner’s death.
“Life insurance policy and retirement accounts can fall under this category”.
It’s really important to speak to an experienced attorney to determine how your loved one’s property is titled.
If it is determined that you will need to go through the courts in order to transfer the decedent’s property.
Then that attorney can represent you through the process.
Settle All The Debts
You’ll need to settle all the debts of the decedent and if you intend to sell your loved one’s home.
You’ll need to keep up with the homes expenses the taxes, the property insurance, utility things like that.
If it happens to be in a community that has a homeowner’s association you’ll need to keep that up also.
If your loved one’s estate has a will and has named an executor, that is the person that will be responsible for taking care of all these items.
If The Property Still Has A Mortgage?
The other thing I didn’t mention was that if the property still has a mortgage.
You’ll be responsible as the executor or as the appointed administrator to keep up with those mortgage payments also.
If all of these expenses are a hardship there are ways around it, you need to speak with your attorney or a certified probate real estate advisor.
To give you some other ideas of how you can take care of the property but not all of the expenses.
Whether It’s Possible For You To Sell The Estate Property?
You’ll want to determine whether it’s possible for you to sell the estate property.
If your loved one has named an executor and beneficiaries in a will.
Then you’ll just want to get permission from the probate courts in order to start the process of selling estate assets.
If The Executor And The Beneficiaries Disagree?
If the executor and the beneficiaries disagree with how to handle the estate property especially the real property the home of the decedent.
Then you’ll have to go to court to have that settled.
Of course, to ease the process of selling the property you’ll need to have the proper paperwork.
If your loved one died unexpectedly, you’ll have to go through all their belongings hoping to find the paperwork that would then appoint you as the executor.
“Looking for that will, looking for any important papers is very important”.
List Of The Most Important Documents
Here’s a list of the most important documents that you want to locate in your loved one’s home.
- A Copy Of The Homeowner’s Insurance Policy
- Any Bills Or Receipts For Bills
- Your Loved Ones Will
- Any Bank Accounts Documentation
- Investment Account Documentation
Responsible For Paying Any Taxes
As the executor or the administrator, you will be responsible for paying any taxes on behalf of your loved one.
Federal law may have you paying estate taxes, upon the transfer of the property.
That’s something that you’d want to speak with your attorney or your trusted tax advisor.
Additionally, you may have to pay taxes on the property once you’ve sold it.
Again speak with your tax advisor and paying all these taxes can add up and unfortunately.
If you do have a situation where you have to pay taxes, not all estates do so that’s why it’s important to speak with your attorney, your tax advisor, and a certified probate real estate advisor.
Now selling a home with a mortgage is not very difficult it’s just part of the process that we go through.