Can my new husband leave his home to me in a will even if he would still owe money on it at the time of death. My name is not on the mortgage or deed. And can I do the same for him in my will with my home. His name is not on my mortgage or deed either. The mortgage companies want us to refinance to have both of our names put on the homes. Please help with this. We are both in our fifties and need to write a will. I can't seem to find an answer. Also, what does the mortgage company do concerning changing the name on these homes if one of us would die? Thank you for any help that you can give me on this!!!!
3 Answers from Attorneys
You both can will each other your respective homes. At death, the homes will become probate assets and the beneficiary should inherit the net proceeds of the home.
Either spouse can leave the other their home by will and/or trust. This can be done without refinancing or adding names to the mortgage or deed. Upon the death of either spouse, the home would transfer to the surviving spouse. At that time, the home could be sold to satisfy the mortgage, the mortgage could be paid outright by the surviving spouse, or the loan can be assumed by the survivor. You would need to contact the mortgage company. I think it would be a good idea for you to meet with an estate planning attorney to discuss what your estate planning goals are and implement them.
You can also consider doing Transfer on Death deeds to transfer to the other outside of Probate process. You should consult an estate planning attorney prior to doing this. You would not need to change ownership titles to add the other spouse now unless you are trying to refinance or are trying to do some other financial arrangement and they want security.