My grandma was given 6 months to live and she would like my boyfriend and I to be able to keep her house and live in it. I was told about a lady bird deed and I'm wondering would we still need to get the mortgage and insurance in our names/would we have to refinance it in our names possibly costing us more than what she currently owes or does the lady bird deed just automatically transfer us as the new owners and everything statement wise will come in with our names on it once she passes?
Insurance and the loan do not simply "follow the deed". Your grandmother is the named insured, as well as the mortgage company. If you want to be covered by the insurance, you need to get your own insurance. The mortgage will stay in your grandmother's name and will need to continue to be paid to avoid foreclosure. The mortgage company has no obligation to talk to you or give you information about the loan unless you have legal authority - such as a power of attorney while grandma is alive, or letters of authority of personal representative if grandma passes away. Also, there is more to it than just doing a deed. When the transfer occurs a transfer affidavit would need to be sent to the local assessor's office. A new principal residence exemption affidavit might also need to be filed. So in short, no. There is a lot more to this than you think. If you need more info, call a real estate or estate planning attorney in your area for a consult. Getting good advice now can help you to avoid bad consequences with this later.
Disclaimer: As always, you get what you pay for. Be sure to talk to a qualified attorney in your area about your specific situation before you choose to rely on any information you get from internet discussion boards such as this one. I am a Michigan attorney and I do not give advice about state law other than Michigan law. If you live outside of Michigan the information presented here is based on federal law and general legal principles, and should not be construed as advice specific to your state's law.
I agree with Mr. Harris' response. I write simply to add that you want to be VERY careful about adding someone else's name to the title. While you and your boyfriend may get along great, I cannot tell you how many times we deal with situations where parties are trying to have names REMOVED from the title. It is MUCH easier to get people on than to take them off, in my experience.
You do not indicate whether there is anyone who might challenge your getting the house upon your grandmother's death. If such a possibility exists, you want to be even MORE cautious, when setting this up.
***Please be sure to mark if you find the answer "helpful" or a "best" answer. Thank you! I hope this helps. ***************************************** LEGAL DISCLAIMER I am licensed to practice law in the State of Michigan and have offices in Wayne and Ingham Counties. My practice is focused in the areas of estate planning and probate administration. I am ethically required to state that the above answer does not create an attorney/client relationship. These responses should be considered general legal education and are intended to provide general information about the question asked. Frequently, the question does not include important facts that, if known, could significantly change the answer. Information provided on this site should not be used as a substitute for competent legal advice from a licensed attorney that practices in your state. The law changes frequently and varies from state to state. If I refer to your state's laws, you should not rely on what I say; I just did a quick Internet search and found something that looked relevant that I hoped you would find helpful. You should verify and confirm any information provided with an attorney licensed in your state. I hope you find our answer helpful!
Our Rating is calculated using information the lawyer has included on their profile in addition to the information we collect from state bar associations and other organizations that license legal professionals. Attorneys who claim their profiles and provide Avvo with more information tend to have a higher rating than those who do not.What determines Avvo Rating?Experience & background
Years licensed, work experience, educationLegal community recognition
Peer endorsements, associations, awardsLegal thought leadership
Publications, speaking engagementsDiscipline