Quick / Quit Claim Deed – Dying Mother
In 2004 my mom’s house was refinanced with myself. We are now both on the title, where she signed a quit claim deed with me with right of survivorship. Now she’s passing away and she wants me to sign a deed giving my 50% back to her, so she can give the house to all of us kids and let us all split 4 ways (4 kids) the money left over after the mortgage is paid. My question, if this happens because I’m the main one on the mortgage, and the house is sold, are they obligated to pay off the mortgage or am I stuck with a $150,000 loan still owed since I surrendered my rights to the entire house? Any advice or explanations of what this means would be appreciated.
Re: Quick / Quit Claim Deed – Dying Mother
I would advise you to speak to an attorney who can review the deed, the mortgage and your mother’s will immediately so that everything can be arranged for everyone’s benefit while there is still time.
Generally, when a house that is owned by an estate is sold, the mortgage (owed by the decedent) is paid, and the remainder is used for other estate obligations and finally, the distributions to the beneficiaries.
Here, you would have a case where the house is owned by the estate, but a third party would be liable for the mortgage. You would be required to continue to pay the mortgage payments until the house is sold, at which time the mortgage would be paid. On the other hand, your siblings who are not responsible for the mortgage would benefit from your mortgage payments and you may not be reimbursed.
You may also have to file a gift tax return for the “gift” of the value of your interest in the property to your mother.
Please speak to an attorney. Let me know if I can assist.
Cyndi Perez Trostin
Glick and Trostin, LLC
208 S. LaSalle Street, Suite 1650
Chicago, IL 60604