A married couple purchase a house and finance VA in a community property state.

Question

One spouse has children from a former marriage and does not have a will and does not want to make one. If this spouse dies, what happens as far as ownership of the house. Both parties have signed and taken responsibility for the mortgage.

Is there a solution other than a will? The spouse without a will wants the other spouse to have the house.

Answer 1

There is no problem.  Whoever has the keys to the house has control when the other dies.  If your husband dies, you just stay put.  You make the payment every month but the mortgage company doesn't care that someone died; they just want their money.  Most states have laws that say that a death does not trigger a "due on sale clause" so you are protected from the lender wanting you go change from the VA loan.

If you want to sell the house later, do it.  You pay $190 at Probate Court and leave with a Letter of Testimentary Acceptance.  You have agreed to handle the estate.  Your proof of eligibility is the will or your marriage certificate along with the death certificate.

Why do i know this is so easy. I did it.  And everyone helped along the way. /

Answer 2

Registering the property as joint owners with right of survival acts to remove that property from the estate. It moves without will.

This works both ways, of course.

Answer 3

Probate laws are the government's attempts at writing and administering a will for you.  They will appoint an administrator who knows nothing about the deceased's wishes and really doesn't care.  The administrator will award the assets on the basis of probate laws and will be paid for his services out of the estates assets before anything is awarded.  Heirlooms, real property, junk, stocks, bonds, anything will be liquidated and used to pay the administror's salary and be distributed to the heirs.

Generally, assets are first awarded to the spouse, then the children, then the parents.  In a community property state, half of everything separately or in total that belonged to the couple belongs to the surviving spouse, the other half is awarded based on the will or probate law if there is no will.  However, they won't take anything away from the spouse like their auto, house, etc.