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Do we need to set up a living Will or obtain power of attorney to take over payments on mother's home

Asked over 3 years ago - Bellingham, WA

My Mother in law is a widow and receives about 1800 a month to live on..She owes 350,000 on her house but the house is worth 800,000. She is at the point of loosing her house. We have discussed if my husband pays the 1700 a month house payment, she can keep and live in her home until her death.She will then will the house to my husband and have it notarized. My husband makes very good money but it is still picking up an additional house payment on top of ours.I don't believe the house is paid for upon her death and she doesn't have life insurance. Do we need a living will along with a final will and should my husband legally be Power of Attorney to make a final decisions? Can my husband inherit the house if my mother in law states it in her will? He will not qualify for a loan to cover 350,000 .We want to help her keep her house and live out her life in her home.How do we make it legal and binding so he gets the house because he is making the payments? He has one sister but she will not get any part of the house only whats inside. I'm just the daughter in law in the middle. The house was purchased for 400,000 about 15 yrs ago but loans were taken out along with second mortgages to keep a company running. So its worth the investment as long as it is legal and binding. Please I need to know is this a BAD idea or a GOOD one

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Attorney answers (3)

Gabriel Cheong

Reputation Level 15

Answered over 3 years ago. Divorce / Separation Lawyer in Quincy, MA.

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Note that I am not licensed to practice in your state.

I think you're a little confused on your terminology.

First I want to say that your mother in law needs to speak to an experienced estate planning attorney right away. Whatever advice attorneys can give on avvo is limited to the information you provide. There might be a lot more going on that an attorney that's sitting face to face with someone will be able to pick up and decide if it's important information or not.

Just from the facts that you laid out, it really depends on how old your mother in law is. If she's elderly and will pass away within 10 years or so, it would be best probably if she puts in her will that your husband is to get the property. It would probably not be a good idea to deed the house to him now because when he turns around to sell it later on, he will have to pay a lot more capital gains tax than if he had inherited the property.

Your mother in law, along with everyone over the age of 18, needs a Durable Power of Attorney, a health care proxy and a living will. That is not something that only someone in your mother in law's situation needs.

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Charity Anastasio

Reputation Level 9

Answered over 3 years ago. Family Law Attorney in Kirkland, WA.

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I see that you posted your question a month ago, so you have probably consulted with an attorney by now. If not, I think this is a situation where you would want to. Yes, if your mother in law bequethed the home to your husband in her will, he would inherit it. But that does not mean that he would be permitted to take over the loan(s).

Also, consider getting an attorney with knowledge of Medicare and Medicaid planning, if there is any possiblity that your mother in law will need long term care in the future, there may be special planning that could throw a monkey wrench into your current plans.

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Christopher L Cauble

Reputation Level 11

Answered almost 3 years ago. Real Estate Attorney in Grants Pass, OR.

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You have very complicated issues. First of all--I cant advise you on what a GOOD or BAD idea is based on your family situation is without in depth discussion. Second of all, estate planning through the use of living trusts is likely the best scenerio, and you may need to look at a lot of issues such as medicaid planning and the like. I think that you need to see a lawyer and not try to put this all together yourself. These all need to be taken care of one step at a time. Make sure you do your homework and see a lawyer who specializes in estate planning and who knows elder law issues also.

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