Probate Question

[Lilbitty]

What is the name of your state?Virginia

My Mom recently passed away. She had previously deeded her home to us(5 children). She owes $63k and market value is only $92k. Her only other assets are a vehicle (no liens) valued @$3K, personal belongings and household furnishings. Her halographic will only mentions the home being left to us and no executor. She has a few medical bills that we intend too keep paying until paid. Do we need to go to her local court house to start probate proceedings?

Thanks in Advance!

 

[seniorjudge]

"...Do we need to go to her local court house to start probate proceedings?..."

Yes, in order to transfer the title to her property (i.e., the vehicle).

HOWEVER, there may be ways in your commonwealth to transfer titles to vehicles without going through probate.

Contact your state bar and ask for booklets on probate.

Also, call the licensing authority in your state to see if nonprobate transfers after death can be made on vehicles.

 

[Dandy Don]

She had no right in the will to designate heirs for the home, since it is not officially/legally hers--it is still owned by the mortgage company. The executor will need to discuss with the mortgage company whether the mortgage company will allow the home to be sold (and whether you have enough equity in it to receive a portion of the profit from the sale) or whether someone in the family wishes to live in the home and can afford to continue making monthly payments on the loan.

 

[nextwife]

"She had no right in the will to designate heirs for the home, since it is not officially/legally hers--it is still owned by the mortgage company."

I'm not certain that it is correct that it is "owned by the mortgage company" In many states, mortgage or no, the OWNER is still vested with a "fee simple" interest and is free to will to, or sell to, whomever. A mortgage does not necessarilly make the mortgage company an "owner", only a lienholder. Having a mortgage, in many states, simply adds a lien to the real estate. but it does not give the mortgage company any rights beyond the right to enforce a "due on transfer" clause in the mortgage and to act in the event of a default. I will check to be certain, but I don't believe having a Deed of Trust prevents one from willing their interest in the RE.

 

[seniorjudge]

...I will check to be certain, but I don't believe having a Deed of Trust prevents one from willing their interest in the RE....

You are correct but the land had been sold before death.

That's what DD was referring to.

But, DD, nexie is right: the mortgage company does not "own" the real estate (although if you read the deeds of trust we use here in Missouri, it sure sounds like they do!)