Estate planning question

[andre3k]

I already have a consultation with an attorney scheduled, just wanted some input from the peanut gallery.

My father passed away earlier this month, and luckily after listening to me, he had a will prepared. I am getting his home but he asked me to allow his wife to live in it until she passes. I don't have an issue with that. The will isn't being contested.

1. What do I need to do to transfer ownership of the home to me? The home is paid off.

2. What's the best way have his wife live in the home and ensure that taxes and insurance are paid. I have another rental property and my initially thought is to draw up a lease agreement and treat it as a rental. Her "rent" would be the annual amount of the property taxes and insurance.

3. My primary concern is maintenance on the property. I'm not looking for cash flow from this property but I want all expenses covered and to not have to come of pocket for a home that isn't generating income. Any ideas on how to handle this?

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[ZX9RCAM]

Sorry for your loss.

If there is a will with you to inherit, I don't think you need to do anything.

The rest might be daunting.

 

[oldag]

I already have a consultation with an attorney scheduled, just wanted some input from the peanut gallery.

My father passed away earlier this month, and luckily after listening to me, he had a will prepared. I am getting his home but he asked me to allow his wife to live in it until she passes. I don't have an issue with that. The will isn't being contested.

1. What do I need to do to transfer ownership of the home to me? The home is paid off.

2. What's the best way have his wife live in the home and ensure that taxes and insurance are paid. I have another rental property and my initially thought is to draw up a lease agreement and treat it as a rental. Her "rent" would be the annual amount of the property taxes and insurance.

3. My primary concern is maintenance on the property. I'm not looking for cash flow from this property but I want all expenses covered and to not have to come of pocket for a home that isn't generating income. Any ideas on how to handle this?

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The attorney will help with transferring the title.

I would recommend a lease for his wife, even if $1 per month. This should contain stipulations that would allow you to evict her should problems arise (e.g., does not reside in the property for a certain period of time, damages the property, etc.). Probably won't be an issue, but best prepared for worst case.

The third point could be difficult. I will not pretend to be able to advise. Ask the attorney.

 

[baboon]

Sorry about your pop's. Is there a provision if she needs to go to an assisted living, nursing home or hospice? Was that included in your father's wishes? Does she have any income that you are aware of?

As far as up keep and maintenance I can see where your making repairs benefits you in the long run, but yard work should be for her to pay along with taxes and insurance.

When my dad died While trying to figure out selling his house,I didn't think it was wise to leave it empty as the neighborhood had changed. I suggested my nephew should rent it as he and his then knocked up wife were living in his mom's basement. My brother and I thought $500.00 a month was a great deal, as it cover taxes & insurance + a few bucks in case something needed fixing. My sister wined like a bitch and got us down to $350.00.

Late payments where every month, but the late fee was never include. I had the password & pin number to the account the money was going into. When he moved out, he left all kinds of things behind for 2 months that we never seen a dime on. In the mean time my brother found 3 guys from work ready to rent it for $1,500.00 per month.

The point being get advice from a lawyer and draw up an agreement. Family will often times phuc you worse then strangers.

 

[Polkwright]

Taxes might be more of an issue than the legal ones. It sounds like there's no official Life Estate that would allow her to stay there. The problem with you just doing it is the fair market value of the rent has to be reported by her as income. I believe you would be required to 1099 her.

Might be best just to set up a trust to hold the title. Yeah, you need a lawyer, and throw in a tax guy.

 

[toddnjoyce]

1. If you’re executor, you’ll need the death certificate and whatever form the county wants to re-title the property.

2. Similar to my father-in-law’s desire. As the owner, you need an enforceable lease executed and treat the situation as a landlord/tenant relationship. When my FIL presented this to us as his wishes we politely declined and informed him if he left it in the will, we would quit claim the deed and walk away from it. That he did not plan to support his common-law wife after his passing wasn’t our problem.

3. If the lease isn’t going to generate income, you could look at a reverse mortgage or HELOC to fund maintenance costs. Either one would have to be satisfied at some point in the future because both effectively generate a lien on the house. The only way to avoid that is to fund maintenance out of pocket. When you liquidate the property in the future, there may also be a capital gains tax bill come due, so keep that in mind if you leverage the property for funds.

 

[Steve In Texas]

Make sure your attorney knows your goals and concerns. If you are the executor, follow guidance. If the estate has other assets, they may be able to cover house maintenance.

 

[Lonesome Dove]

Get it transfered and shake her hand on an agreed amount and payments. You'll have to eat the Taxes and major maintenance should it arise most likely.
Pay for all else with the rent money.

 

[andre3k]

I'm just trying to honor my dad's wishes. His will was pretty simple (6 pages) and I'm the executor. He didn't have many assets. Just the house and it's contents, his vehicle and his bank accounts.

He left me the house in the will and just told me to make sure she pays the taxes and insurance. I asked him what if she didn't pay, how should I handle it, and he never really responded.

This whole situation made me rethink my estate planning. The wife and I both finished our wills and I purchased another term life policy along with smaller policies for both of my kids.

I'll see what the lawyer says on Monday. I appreciate the input.

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[mroper]

I thought some states have lifetime tenancy for a spouse.

 

[Byrd666]

To be perused later.

 

[deemus]

I already have a consultation with an attorney scheduled, just wanted some input from the peanut gallery.

My father passed away earlier this month, and luckily after listening to me, he had a will prepared. I am getting his home but he asked me to allow his wife to live in it until she passes. I don't have an issue with that. The will isn't being contested.

1. What do I need to do to transfer ownership of the home to me? The home is paid off.

2. What's the best way have his wife live in the home and ensure that taxes and insurance are paid. I have another rental property and my initially thought is to draw up a lease agreement and treat it as a rental. Her "rent" would be the annual amount of the property taxes and insurance.

3. My primary concern is maintenance on the property. I'm not looking for cash flow from this property but I want all expenses covered and to not have to come of pocket for a home that isn't generating income. Any ideas on how to handle this?

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The attorney will help you get through the probate process. Prepare to spend appx $3K for that. THat process titles the home into your name / or your living trust.

She should be able to draw off your dad's Social Security benefits. Usually the husband has the higher SS benefits. When he passed, she now has the ability to draw his benefits. Likely more than hers is.

Sometimes the surviving spouse pays the property taxes.

Or you might reach an agreement with her to split the taxes / insurance. It all depends on if she has the means to do that. Which would be much cheaper than paying full rent somewhere.

But she may not have the means to the pay the taxes, and may not have kids who could chip in.

I have seen all of those options in use.


Just keep in mind your dad's wishes. I have seen some awful stuff happen after a parent passed. Keep your conscience clear.

 

[Tnhawk]

I had a relative die over 3-1/2 years ago, we're still waiting for the estate to be settled.

 

[leVieux]

I had a relative die over 3-1/2 years ago, we're still waiting for the estate to be settled.

<>

My paternal Grandfather died in 1957 & we’re still trying to settle the last 3 small properties.

Our Clerk of Courts can’t give a consistent record.

<>

 

[TXAZ]

I don’t know your details but I’m also a sole executor (of my Dad’s estate from last August).
We have a detractor beneficiary, which is driving an estate attorney to drive all the minutiae, to ensure we arrive at an equitable resolution my Dad would be proud of.

The advice you didn’t ask for is … Assume the worst case behavior of others as you do your best in meeting your Dad’s wishes, and work with the attorney to document your every move, dollar, square foot or other possible item of contention.
You can be professional and kind in this process but if you don’t fully CYA yourself now, this can drag out as leVieux noted, for decades. We hope to be completed by end of this year, as the detractor’s attorney sees that we are precisely following the law, my Dad’s intent, and solid accounting standards.
Good luck!

 

[andre3k]

I spoke with the attorney yesterday. The wife has homestead rights to the home until she passes. She also has to pay taxes, insurance, and maintenance during that time as well, or we can agree to split some costs.

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[Eli]

I already have a consultation with an attorney scheduled, just wanted some input from the peanut gallery.

My father passed away earlier this month, and luckily after listening to me, he had a will prepared. I am getting his home but he asked me to allow his wife to live in it until she passes. I don't have an issue with that. The will isn't being contested.

1. What do I need to do to transfer ownership of the home to me? The home is paid off.

2. What's the best way have his wife live in the home and ensure that taxes and insurance are paid. I have another rental property and my initially thought is to draw up a lease agreement and treat it as a rental. Her "rent" would be the annual amount of the property taxes and insurance.

3. My primary concern is maintenance on the property. I'm not looking for cash flow from this property but I want all expenses covered and to not have to come of pocket for a home that isn't generating income. Any ideas on how to handle this?

You'll need a qualified probate attorney, but this sort of thing shouldn't be too hard.

<>

My paternal Grandfather died in 1957 & we’re still trying to settle the last 3 small properties.

Our Clerk of Courts can’t give a consistent record.

<>

Wow! I have a friend that 'the end of the line' - executor of a previous executor's estate going back a few generations - that has been repeatedly served with lawsuits ("John Doe, as executor") over properties long forgotten about or outright abandoned.
67 years to settle an estate is insane!

Eli