My mom wants to make sure that I will get her house after she passes away...

Question

The house is still in mortgage. Let say if she passes away when the house is still not paid off. I've heard about quite claim deed and living trust, which is the best? Please explain in details in your own words. Or if there are any alternative solutions, please provide in details also. Thanks.

Answer 1

Whomever gets the house will take it subject to the lien if the mortgage is not paid off.  In other words, the bank gets paid or the bank gets the house.  If your mother is concerned about the mortgage, she should have a life insurance policy in place so that you can pay off the mortgage.

Answer 2

You don't need deeds or trusts. They won't get you out of a mortgage.

Your mom needs to leave you the house in her will. Plus she needs to make you the beneficiary of her life insurance. She needs to leave you enough life insurance to pay off the mortgage if she wants you to have the house free and clear.

Answer 3

Clearly you have to make plans to pay off the mortgage, and quit claim nor living trust will make a plan to pay it off.

If she has other assets to be used to pay off the mortgage, or if you can pay it, all may be well. It may or may not be possible to get life insurance that would pay off the mortgage. If her health is perfect and she is still fairly young, insurance is a good option, but so too is just going on paying down the mortgage.

The most direct way to provide that you will be able to  carry on is to have you and her on the deed, joint owners with right of survival, and of course both of you on the mortgage. But for sure this means you have to be able to pay the mortgage payments, taxes etc.

Mortgages left owing have been the cause of forcing heirs to sell the property to pay taxes, mortgage etc.

Your mom would not leave you the house in her will if you are joint owners with right of survival. The house is not part of her estate for probate, and is not available to be willed. It passes to you directly on her death.