Does paying the down payment on your parents&#39; home ensure that you will inherit the home? Suppose someone pays the down payment for their elderly parents and then the parents (after some number of years) pass away and have been paying into expenses and mortgage. If the parents are considered as shared owners of the property, how might that affect what they leave to their children in their will? What happens if they are not shared owners, but just living in the house a child owns and allows them to stay in (and I guess pay rent for)?
If the parents own the house (as shown on the official deed) it will go as they leave it in their wills, or as the local law for intestate inheritance (no will) directs. Who paid all or part of the down payment will not matter. If the intent was for that to matter, then the child who provided the down payment should have been listed as partial owner, or some written agreement should have been made specifying the rights involved. Otherwise the down payment would be considered as a gift. If the child owns the house (as shown on the deed) it would not be part of the parents' estate, and their will(s) would not affect it. It would remain the property of the child. If the down payment was a loan rather than a gift, as shown by a written agreement of some sort, then that debt would be an obligation of the estate, to be paid before any legacies were distributed.
If the property has been transferred to HUD in a reverse mortgage foreclosure, the family has no authority to sign anything and the country records are simply not up to date (it is not unusual for county real estate records to be one to six weeks behind being up to date based upon how busy the recording office is and how many staff they have, often they are further behind in the summer and around Christmas when employees tend to take vacations). HUD can sign the easement, and so can any successor owner. Whether they will or not is another question. Even if the foreclosure were not quite complete, any action taken by the family after the foreclosure was commenced would be invalidated once the foreclosure was completed.
It sort of depends on what the will says, for example if the will says &quot;shall receive 1% of the value of my estate at the moment of my death&quot;, that answers your question. That's a bit unlikely, more probably it just says &quot;shall receive 1% of my estate&quot;, in which case this refers to &quot;the totality of what is left to disburse to beneficiaries&quot;, that is, after obligations have been discharged (debts, taxes, funeral expenses, expense of estate administration). You also have to disburse specific benefits first, for example &quot;$10,000 to Aunt Luddy&quot;, &quot;the car to cousin Billy&quot;. Thereafter, percentages (implied such as &quot;equally&quot; or explicit such as &quot;2%&quot;) are then computed over the remainder. Ideally, you will know the current value of everything left and can do the math and transfer title all at once. This might be a bit impractical for an entire estate, but it is practical for an estate composed of a bunch of divisible assets. All of the securities can be transferred on one day; the house may be sold a month later and assets re-distributed according to the formula at that point. In other words, you don't need a fixed instant for computing and distributing the estate, you just need to distribute each asset according to the terms of the estate.
Is this true? Yes. can someone explain how this might work? You can form an LLC, and then fund it with money that would be used to purchase the home, and buy the home in the name of the LLC. One minor exception is that a handful of rural U.S. states prohibit limited liability entities from owning farm land, so if the home is part of a farm or ranch, this could be prohibited in those states. If there is a mortgage, this is more difficult, but not impossibly so. The primary debtor on the mortgage would be the LLC. Ordinarily the owner of the LLC would be required by the bank to guarantee the mortgage, but loan guarantees do not necessarily have to be made a matter of public record. If the LLC has only one member, it is disregarded for income tax purposes, so that isn't a problem. There may be issues in this case of a house not qualifying for residential property tax treatment in some cases (which is often a lower rate than commercial real estate). There is also sometimes an issue that property owned by an LLC isn't eligible for a &quot;homestead exemption&quot; of equity in the home from creditor's claims. It may also be treated differently in terms of eligibility for means-tested benefits like Medicaid nursing home coverage. But, it is allowed. I ask the question, for it seems to me that it should not be difficult to find out who the owner of any given LLC is. In the U.S., the owners of a manager managed LLC are rarely disclosed in the public record (although about half of U.S. states require one or all of the members of a member managed LLC to be disclosed). But all U.S. states allow LLCs to be manager managed. Also, all U.S. states are required as a matter of constitutional law to all LLCs organized in a state other than the state where the LLC owns real property or operates to do business in that state. States can imposed regulations on out of state LLCs to some extent, however. The main exception to these general rules is California. Although the California Articles of Organization do not list the members of the LLC in the Artiles, California requires the LLC to file a Statement of Information within 90 days of the approval of the LLC. The Statement of Information does require a list of the LLC's members, and it does become public record. Records of LLC ownership are maintained in the private internal records of the LLC. A contact person, called a registered agent and sometimes the managers of the LLC with authority to act on its behalf must be publicly disclosed, but neither of these posts has anything to do with ownership. Many states also require the &quot;organizer&quot; of the LLC to be disclosed, but that doesn't have to be an owner of the LLC either. Often it is a lawyer or accountant for the LLC. It will be necessary to disclose the ownership to federal tax officials, and often also to state tax officials. Also, soon, under a newly enacted federal law that has not yet taken effect because regulations have not been written, to federal money laundering officials. But, both of these pieces of information are confidential and not available to the general public. This information can be obtained by subpoena in pertinent litigation, however, must often be disclosed when filing federal lawsuits, and is often required to be disclosed by counter-parties in business transactions. Footnote The U.S. practice is not the global norm. In most civil law countries, for example, ownership interests in entities need to be reflected in a notarized document kept in the custody of the notary involved. In recent times, interests in transparency and avoiding tax evasion and money laundering for terrorism and crime have promoted additional, less decentralized records of entity ownership.
We can't give personal legal advice, but we can explain in general terms what the law is. Apparently, the mother, brother and estate are outside the US, in country X. The disposition of the estate follows the laws of X, so you would need an attorney who can practice law in country X. The primary issue is, (1) how are estates probated in X and (2) what provisions, if any, did the deceased(s) make for the disposition of the estate (was there a will; a trust; did one or more parents die intestate?). To simplify matters, we will assume that the laws of X are very similar to US law (which is not uniform – it is state-specific, but broadly similar). In the US, assets can be in a trust and can be directly transferred to a beneficiary. The disposition of the assets may be irrevocable, meaning that the person setting it up can decide who gets what, and then that cannot be changed. It is thus possible that a child could be excluded as a beneficiary of a trust. E.g. the father could set up a trust with just the mother and brother as beneficiaries. The mother may simply have been misinformed as to what the trust document said. Or, there could have been illegal misappropriation of funds, even something as heinous as providing fraudulent documents purporting that an actually living beneficiary is dead. In other words, even though you can't afford a (foreign) attorney, that is realistically the only way to get a clear answer, if the brother is being uncooperative or untruthful.
Unfortunately, your relative is more in the wrong here First, the COVID situation does not change anyone's rights and obligations under a contract (see What effect does an event like the current Covid-19 pandemic have on contractural obligations?). So the landlord (through their agent) is obliged to provide the property and your relative is obliged to pay the rent and to occupy the premises (most residential leases contain a requirement for the tenant to live in the premises and not leave it empty). Your relative (through you) has indicated that she will be in breach of her contract. The agent has considered her position and has offered two (IMO generous) alternatives: Allow her to continue with the lease without taking possession providing the rent is paid. To release her from her obligations under the contract and return the rent. To put it in perspective, if your relative simply "walked away", she would be liable for the rent until a new tenant was found and, if that new tenant was paying less rent than she was, the difference for the duration of the lease plus the costs of finding a new tenant - advertising, agent's fees (usually 1 month's rent) etc. Now, the landlord has an obligation to minimise your costs so advertising the property could just be prudent. However, if they lease it when your relative's contract has not been properly terminated then it is they who are in breach. Surely they can't take the rent and offer to re-let the property at the same time? Surely they can. What they can't do is relet the property without properly terminating your relative's lease. Would they even be entitled to retain the deposit under these circumstances? Absolutely. The deposit is to cover their losses if your relative breaks the lease - as she has indicated she is going to do (this is called anticipatory breach). Finally, I'd rather not go down this route but is there any protection for my relative for not being forcefully 'evicted' - since she's paid the deposit, rent - and those haven't been returned? Having never taken possession, she is not being evicted.
While I don't like agreeing with a landlord, you are in the right here. Your tenants do not have the right to access the property now they have moved out. If they were still living there things would be different and it would be reasonable for them to fix minor damage (to preserve their deposit). They did not do so. Get the damage fixed professionally, keep all reciepts, and take it out of the deposit.
The idea is that, by default, we should assume the payment is a gift, unless we have specific evidence to suggest that it is offered in exchange for something. In the first case, the father-in-law has given no indication as to why he is giving her the money. It could be that he is indifferent to whether she remarries or not, and simply wants her to have a steady income in either case. He may be presuming that, if she remarries, her new husband will be able to provide for her, but until such time, he (the father-in-law) will pay her way. We certainly do not have evidence to show that he actually wants her to stay unmarried and is paying her for that purpose. In the second case, the father-in-law has given us more evidence. His words make it explicit that he does want her not to remarry, and that he is paying her in order to get her not to. Since he is clearly paying money with the intention of getting another party to do something (or in this case, to refrain from doing something), we understand it as a contract.