A few years back, my brother was in financial trouble, so my dad helped him buy a house by co-signing the mortgage. My parents don’t have a will, and they are getting older, so I worry about what happens if something happens to them. If my dad passes away, does my mom have to deal with anything? If both parents die, does their estate have any responsibilities? And if my brother passes away (unlikely, but still), would my parents end up with the house and the mortgage? We want my parents to make a will, but they are not interested. I’m concerned this could lead to family issues in the future, so I want to know what to expect.
Have you checked out this forum for legal advice? They might have some good insights.
Since your dad is a co-signer, he’s legally on the hook for the mortgage. The mortgage company can’t come after him directly for your brother’s debt. But if your brother can’t keep up with payments, they might foreclose. If the loan goes to a law firm, things can change. Can a law firm place a judgment against your dad’s property? Yes. It’s best to talk to the lenders before ignoring them. They generally prefer to keep you in your home and get paid.
Why are you so worried about this? Isn’t it really between your dad and brother? It’s your dad’s estate, not yours. Are you concerned about how this might affect your inheritance?
Lake said:
Why are you so worried about this? Isn’t it really between your dad and brother? It’s your dad’s estate, not yours. Are you concerned about how this might affect your inheritance?
After my grandparents passed, my dad’s siblings fought for years over the estate because my grandma didn’t say what she wanted. I’m worried this could lead to conflict with my siblings if my brother can’t handle his bills and we get pulled into his mess.
@Lennon
Try to see your parents as loving people, not just an estate. Let them manage their money how they want. Don’t let money issues tear your family apart. A will isn’t strictly necessary, but it’s good to not view your parents solely as an estate.
@Lake
I think we misunderstood each other. I worry that someday my brother’s mortgage company might come after me or my siblings if he defaults, or even my mom. I’m not sure where the debt obligations end. I don’t care about the inheritance amount, but being surprised by debt collectors or legal trouble is not something I want for any of us, especially my mom. She shouldn’t have to deal with that at her age. I doubt my parents talked to a lawyer about this deal, so I worry they may have put us in a tough spot. My brother’s financial situation has been unstable, and he owes a lot on the house. It’s a long loan, and if he stays there, he’ll be making payments until he’s almost 80.
@Lennon
They can’t come after you or your mom as long as you didn’t sign anything.
@Lake
A will is definitely necessary for anyone who has things to manage and wants their wishes known.
West said:
@Lake
A will is definitely necessary for anyone who has things to manage and wants their wishes known.
That’s a decision your parents need to make.
Anyone who co-signs is financially responsible. The house belongs to both your brother and dad. If one of them passes, the other is still responsible. If they both pass, creditors may try to claim from your brother’s estate. You should talk to your dad about setting up a trust and let him make the choices. Avoid getting tangled up in the house just in case your brother’s situation doesn’t improve.
Check out Avvo.com. It’s a free site where you can ask legal questions. It connects you with local lawyers who can respond. Usually, you get a few answers within a day, and they can tell you if you need a lawyer.
What type of deed your dad and brother have will affect what happens to the house. Some deeds transfer ownership automatically to the co-owner, while others don’t. If it doesn’t, then you and your siblings may be entitled to part of your dad’s share. This means your dad’s estate could be responsible for his part of the mortgage, which means you and your siblings would own half the house with your brother. If the deed is in ‘joint tenancy,’ it goes to your brother, and he’ll need to handle the mortgage. Your dad might say he has no will, but he could have one.