If I were to do a lady bird deed with my grandma for her house when she dies do I need to notify the mortgage company& insurance
2 attorney answers
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.
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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.