I know someone who may be inheriting a house with a mortgage between her, her brother, and her mother. She won't be held liable for paying t...

Question

I know someone who may be inheriting a house with a mortgage between her, her brother, and her mother. She won't be held liable for paying the mortgage if she didn't agree to this right? Also, someone may be inheriting a paid off lake house between her and her brother. Will she have to pay the taxes without agreeing to this? What if she wants to sell and the brother does not?

Answer

This is a great question. Any property left in a will or gifted to another person can be "disclaimed." That means the person who stands to inherit property can choose whether they actually receive it or not.

If an individual does disclaim property, then the will may state who stands next in line to inherit the property. If it does not, then it will pass through the Illinois inheritance laws.

So the person you are asking the question for has two options. She can disclaim the property, meaning she will not get title to it and not be liable for making payments on the mortgage.

Alternatively, if she accepts title to the property through inheritance, she will not be personally liable for the mortgage, meaning the bank can't come after her personally for non-payment, but the bank can still foreclose on the property if payments are not made. So this person may end up losing the property (and end up being named a Defendant in the lawsuit), if payments are not made on the mortgage.

Given the nature of this problem, it may be an excellent idea for her to seek the advice of an attorney who can go over all the information and advise her accordingly.