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I Inherited a Home with a Mortgage When My Grandmother Passed--What Can I Do?

Updated: Apr 16, 2019

Attorney Thomas B. Burton answers a reader question about her rights, responsibilities and options after inheriting a home subject to a mortgage from her grandmother.

Transcript of Video: I Inherited a Home with a Mortgage When My Grandmother Passed--What Can I Do?

Today's question comes from Milwaukee

Wisconsin and the reader asked the

following what can I do I inherited a

home with a mortgage when my grandmother

passed I am completely out of my area of

expertise my grandmother passed and I

inherited the duplex with a mortgage

attached balance on the mortgage is

less than $20,000 what are my options

obligations rights assistance available

for me I want to save my legacy I grew

up in this house so the answer is that

the mortgage is a lien on the property

that continues after your grandmother's

death so you take the property subject

to the mortgage if you want to keep it

you need to keep making the mortgage

payment now if your grandmother left you

other assets such as cash you could use

that money to pay the mortgage payment

the other thing is I am not sure here if

there was a Will leaving it to you or if

she left it to you via trust or a

transfer on death deed because if

there's a Will then the property may

need to go through probate the good news

is this is a gift from your grandmother

and it's tax-free to you whatever the

equity in that condo I believe or duplex

is tax free gift to you upon death the

other good thing is your grandmother

left it to you at death so you'll receive a

stepped-up basis meaning I recommend you

get the property appraised because your

basis for tax reasons is now whatever it

was worth on the date of your

grandmother's death instead of what she

bought it for which was likely much less

then if you go to sell the property some

day you would have that new basis but

again you will need to make the mortgage

payments going forward if you want to

keep the property and then if and when

you do pay off the mortgage make sure

you get that release from the bank to

show that you now own it outright free

and clear so if you have more questions

about this I recommend you speak with a

qualified probate and estate planning

attorney in Milwaukee

and they can help guide you through the

process of giving this property fully

into your name and you taking control

great question and thank you for asking

and if you're a listener out there

watching these videos and you have a

question feel free to submit it through

my website on the blog or the contact

form and just put in the subject line

video blog question and state your

question as briefly as you can like

these readers and I'll try to get to it

in an upcoming video thanks for watching.

© 2019 Law Office of Thomas B. Burton. All Rights Reserved.

Transcript and captions provided for ease of access for the hearing impaired.

For questions about this topic, or to suggest a topic for a future blog post, please contact my office.

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