As a responsible adult, you will do everything in your power to ensure the property that you have worked hard to obtain gets left to a deserving party once you are gone. While you may go through the trouble of making a will and even talking to an an attorney, there could be things that get in the way of the property you leave behind ever being taken over by the person you intended. To ensure the real estate property you have in your will does eventually make it to its rightful owner once you pass away, it is a good idea to understand what can happen that gets in the way. Take a look at these three reasons why willed real estate can be lost after your death.
The real estate in your will has not had property taxes paid.
Throughout your life, you are responsible for paying the property taxes on any real estate property you own and you likely make sure this is taken care of. However, if you suffer with an illness that affects your memory, paying property taxes could easily be a bill that gets long forgotten. Unfortunately, if you will a piece of property to someone and the property taxes are behind, this person may have to pay those owed back taxes before the property can be legally transferred to their name.
The real estate in your will has an unpaid lien on the property.
If the real estate property you own is not completely paid for and you pass away, the lien on this property does still exist. Therefore, even though you may have left that property to an heir in the will, they will not be able to take ownership unless the loan is paid off. This is why most lienholders recommend that you pay for a specialized insurance policy that will pay what is owed on the property if you pass away.
The real estate property has to be sold to cover debts.
Even if the real estate property you own when you pass away is completely paid for at the time, outstanding debts can threaten the likelihood of this property being inherited by the intended heir. Creditors can actually open a claim against your estate for the monies owed to them by you, in which case anything of value may have to be liquidated in order to pay off the outstanding debts.
For more information, contact Leon J Teichner & Associates, P.C.