“Information Bits from the Boss: Samantha provides brief answers to clients frequently asked questions”
What if I die and I still have a mortgage?
This is always a concern that people have. They are paying down a mortgage, and if they pass away and that mortgage hasn’t been paid off, what does that mean for the beneficiaries? The first thing to remember is a lot of it depends on how the mortgage is written and how the deed is titled. Is there someone else who is on the mortgage? Who else is on the deed? Those are all questions that we ask. The good news is if you do have a mortgage typically you have some options as to how your beneficiaries and executors can handle that. Usually, you can assume the mortgage and continue to make the payments, or you can consider selling the property and paying off the mortgage. It’s always helpful to be able to talk through what do you want and what do you need in those circumstances. Sometimes people will also make provisions in their will or part of their estate planning so that any remaining amount due on the mortgage or the mortgage balance at the time of their death is paid off through the estate funds. That is something else to consider when you are putting together your estate plan. Do you want to pay off the mortgage so that anyone who is going to be receiving that real estate doesn’t have to worry about assuming the mortgage, making the mortgage payments, or selling the property and paying the mortgage off. I always encourage everyone to make a list of assets that they have so we know what they have, what outstanding balances or debts do they have, so that we can really make a plan about how to handle that mortgage or that outstanding debt that you may have. If you have additional questions, please call our office.
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