Jerry Taylor walks through what happens to a house when the owner dies. The mortgage still needs to be paid, and the new owner can often assume the loan. Without a will, a transfer-on-death deed passes it to a named beneficiary, or state law decides the heir. With a will, probate takes nine to twelve months. A trust skips probate entirely.
Chapters
If you own a home, what do you think will happen to it if you pass away? Most likely it'll be one of the following. First off, let's talk about the mortgage. The mortgage will have to continue to be paid or the bank will foreclose on the home. If you're the beneficiary of the home, you may be able to assume the mortgage, but you'll have to take that up with the mortgage company. Next, what happens to the home if you die without making out a will? If your state allows some type of transfer on death deed, then you may have filed that before you died and it would go directly to the person that you named as beneficiary. Otherwise, if you had no will, the house is going to have to go through a probate process called intestate succession. In that process, the court will decide who gets your home according to your state law. Next, if you had a will, that will, will still have to go through probate court, but the instructions in the will will determine who gets the house. On average, probating a will takes about 9 to 12 months. Next, if you had a trust and the house was deeded in the name of the trust, the house will
