Expert: Dick Dennis - 5/20/2006

Question
Hello.

About three years ago my husband and I wanted to purchase a house
but our
credit was not very good.  My parents agreed to obtain the loan and we
would
pay it.  Since then my Dad passed away and my mother is now 85.  My
name
is actually on the title of the property with my parents, but not on the
loan.   We are still a
couple of years away from having good enough credit to get a decent
interest
rate on a loan.  My concern is that in the event of my Mother's death,
my
sister, who I am not at all on speaking terms will try to step in and
make
claim to my home.  Someone mentioned that we might have my Mom
sign a
quit claim deed, but not file it until it became necessary.  I believe that
filing a
quit claim deed might trigger the lender we now have to call the loan
due.  
Can you think of any advice that might help me protect my investment?  
I
have a nice interest rate at the present time and hate to lose it.  I
cannot
assume the loan as it is stated that it is non assumable in the loan
agreement.  Any ideas would be appreciated.

I also have a second question.  I am joint tenant with my Mom on her
home.
The title states Joint Tenant.   I live in Wisconsin.  Does this mean that I
automatically take ownership if she passes away?  Or, does the title
have to
state joint tenancy with rights to survivorship for the property to legally
pass
on to me?  

Thank you!  I appreciate any information!

Answer
Do it this way, Kate: You get a revocable living trust! Yes, it costs some attorney money, but based on your situation, it is well worth it.

Your mother would be the main trustee. You (and your husband if you wish) would be substitute trustee. Upon your mother passing, you become the main trustee. No one can do anything about it, including your sister. By giving the title of your house a "fictitiouis" trust name, and as long as you make the payments on time, you should not have any problems with the lender.

Your first step is to go to a REAL ESTATE or TRUST attorney and start the ball rolling. The attorney will ask the right questions and fill out the proper paperwork.

I do wish you well.

Dick Dennis     dixiedee13@aol.com