My question involves estate proceedings in the state of: MA
I own a duplex - I live on one side and my married daughter and young family live on the other. About four years ago I placed the house in a life estate so that both my name and my daughter's appear on the deed. I am widowed. We would like to take out a home equity loan but our understanding so far is that it is not possible. We would both be willng to sign the loan. There is no outstanding mortgage on the house. I don't think I realized that when I placed the house in a life estate it pretty much negated ever using the equity. I thought I was doing the right thing but am now not so sure. My daughter thinks that the lawyer who handled the estate plannng was negligent by not explaining that to me. I probably didn't think to ask that question - assuming that anything that I needed to do to the house I could pay for - which is true but not a major remodel project such as adding a room. Is it true that we can never get a loan? Can the life estate situation be negated? I know that if it is possible the time the house has been protected is also negated. I think now that by trying to protect my little estate I made things worse. The best thing would be for me to get hit by a bus (kidding). Thoughts?
I own a duplex - I live on one side and my married daughter and young family live on the other. About four years ago I placed the house in a life estate so that both my name and my daughter's appear on the deed. I am widowed. We would like to take out a home equity loan but our understanding so far is that it is not possible. We would both be willng to sign the loan. There is no outstanding mortgage on the house. I don't think I realized that when I placed the house in a life estate it pretty much negated ever using the equity. I thought I was doing the right thing but am now not so sure. My daughter thinks that the lawyer who handled the estate plannng was negligent by not explaining that to me. I probably didn't think to ask that question - assuming that anything that I needed to do to the house I could pay for - which is true but not a major remodel project such as adding a room. Is it true that we can never get a loan? Can the life estate situation be negated? I know that if it is possible the time the house has been protected is also negated. I think now that by trying to protect my little estate I made things worse. The best thing would be for me to get hit by a bus (kidding). Thoughts?
Estate Planning Issues: Life Tenancy and Home Equity Loans
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