A person can leave a property to a beneficiary under the terms of a will or trust, or with the use of a transfer-on-death deed or Lady Bird deed (in those states that permit these deeds to avoid probate).
When the home transfers, a mortgage or loan secured by the home also transfers. The person who inherits the home might have to pay off the mortgage with other funds or sell the property and apply the proceeds to pay off the mortgage. In some cases, they may be able to take over (or assume) the existing mortgage and have it transferred to them, with the beneficiary continuing to make the monthly payments. Additionally, some lenders might work with the new owner to refinance the loan and change the terms.
A parents’ home is often a place of cherished memories. Schedule an appointment to discuss transferring your home after you pass.
