Ada-Icon
Required

Your Mortgage and Your Estate by Cindy Nelson Elder Law Attorney in Cherokee County, Georgia


You probably hope to have your mortgage paid off long before you pass away. However, in your estate plan you should plan for what will happen if you die before your mortgage is paid off.

If you have a mortgage on your home, then you would be right to wonder if a designated heir can inherit the home after you pass away and what that means for the mortgage. The Wills, Trusts & Estates Prof Blog recently tackled this issue in “What Happens When A Person With A Mortgage Passes Away?

The answers to what happens to the mortgage and home after you pass away depends on to whom you leave the home in your estate plan.

If the person who inherits the home is closely related to you, then by law they can take over the mortgage. A spouse or child, for example, can elect to inherit the home and continue paying the mortgage.

However, as a practical matter if they are unable to continue the mortgage payments, then obviously they will have to do something else with the home.

You might consider in your estate plan ensuring that the heir will have enough other funds to pay off the mortgage.

If your designated heir is not a close relative, then he or she does not automatically get to take over the mortgage. Normally, lenders will let the person inheriting the home refinance the mortgage if he or she wishes to do so and is able to pay.

If the lender is unwilling to refinance and the home must be sold, then the remainder of the mortgage will usually be due at the time of the sale.

Consult an elder law attorney to discuss your options.

Reference: Wills, Trusts & Estates Prof Blog (Nov. 23, 2015) “What Happens When A Person With A Mortgage Passes Away?

Hear From Our Clients
tes-prev
tes-next

“On the threshold of retirement, we finally decided to quit thinking we could self-prepare the requisite documents. We had previously had only a very simple will. We needed the necessary legal (including updated will) & health care docs but didn’t want to deal with the time & complication of legalese. Cindy made the process relatively painless. She took the time to explain and answer questions without trying to upsell services. We were done in 2 meetings plus the reading of emailed drafts. In addition to preparing the documents, Nelson Eldercare will be there when our adult children need advice on executing the plans we’ve put in place.So glad it’s behind us and would recommend Cindy and her helpful staff.”

- Bonnie

Cindy and her company treat their clients like family. Nelson’s offers clear, direct, and honest guidance in planning for your families security and future. No one wants to actively sit down and make these decisions, but Nelson’s makes this process seamless. I was so impressed with their willingness to answer all questions big or small. So glad I made the decision have them help my mom and dad and now me. You can’t go wrong with Nelson’s Elder Care Law.

- Hope

The very best elder law attorney and staff anyone could ever ask for! I have referred a number of clients to Cindy and she never disappoints. She is kind, caring, and extremely thorough in making sure everything is completed as it should be. I highly recommend Cindy for anyone needing lawyer services; she truly goes above and beyond for every client she helps and has had a huge impact in so many peoples’ lives. Thank you, Cindy and staff, for everything that you do- I’m so glad to know you!

- Kerri

I heard Cindy’s presentation at a Senior Luncheon at my church, and was very impressed. She helped my daughter and me understand many aspects of elder law. Josh has also been very helpful in my planning to enter an independent living situation . I have told many friends about them.

- Charlotte

Cindy and the Nelson Elder Care Law team are trustworthy and helpful. They are the experts in elder care law. At Leaf Cremation, we entrust our families to the care of the Nelson team when their services are needed.

- Pierce