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How to take a loan on a house willed to me?

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How to take a loan on a house willed to me?

My grandma is having me move in to take care of her. In her will I am to get her house. In order for me to move in we have to make renovations to the house. My question is do we take a loan against the house under her name? Or does she sign it over to me then take out the loan.? If we do it under her what happens if she dies before the loan is paid? Also, if we leave it under her name and she does die how will that effect me living in the home? Will I be forced out until the will is executed?

Asked on June 15, 2012 under Estate Planning, Tennessee

Answers:

Brad Micklin / The Micklin Law Group

Answered 10 years ago | Contributor

There are a lot of issues that you need to be careful about in the situation. First, you need to be mindful of the potential that people will claim that you unduly influenced her.  Make sure there is an attorney involved before you take out any loan or refinance.

There's also Medicaid planning issues that you need to seek advice. If she transfers the house to you and is hospitalized within five years, it may be investigated as a potential fraudulent conveyance to avoid Medicaid issues.

Speak with an attorney before you do anything.  Good luck. 


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