What Will Happen to Your House After You Die?
Death is inevitable. It’s not just an event that happens to other people, but it is a part of life.
When the time comes to leave this earth finally, there are some things that you might want to consider.
One of them is your house that you have spent a lot of time looking after. In this article, we will specifically look at what will happen to your house after you die.
But since each state operates differently, this is mostly general information. For specific details, however, get in touch with a local estate attorney.
Last Will and Testament
Different grounds will determine what happens to your house when you die.
First is when you die and leave a will behind. In this case, your house will go to the people you mentioned in your will.
This could be your children, spouse, extended relatives, or even friends.
Intestate
The second ground is when you die without leaving a will, also known as intestate. This part is usually more complex than the first one.
Depending on your state, the intestacy law will demand that your house be put into probate and distributed in a court of law.
The state administration will identify and prove who the rightful heirs are before the court gives out a distribution notice.
This process is often long and may put your loved ones in a costly legal proceeding.
Outstanding Debt
The third ground to look at is what will happen to your house after you die when you leave debt behind.
Whether it’s from an unsettled mortgage, personal loan, or outstanding car loan, your house will be in probate, where it will be sold to settle the pending debts as per the Federal Credit Reform Act.
It is only what is left that will be distributed to your heirs. Again, you may want to contact your estate planning attorney for more clarification.
They have the experience necessary to answer more specific questions regarding your situation.
Proprietorship
The other scenario may apply when you die and the house isn’t under sole proprietorship.
That is to say, there are two or more people who are involved in house ownership.
This may hold up on what will happen to your house after you die since there are some legal proceedings that your loved ones must go through to transfer the ownership of the house to themselves.
Usually, your shares will be inherited by your dependents or sold, and the money will be divided accordingly.
Final Thoughts
One of the saddest parts of life is death. While it is unavoidable, you can take some steps to prepare for it.
Even if you die, note that your lovely house will not fall by the wayside.
It will continue to be used after you pass away, perhaps even by those you love the most.
But first, make sure you write a will on who you wish to take ownership of your cherished home.
Category: Housing
