What Happens to a House After Owner Dies with an Existing Ownership Structure

When a homeowner passes away, the fate of their house depends significantly on the ownership and estate details. Understanding how title is held and whether there is a will or trust involved is crucial.

Ownership and Vesting Factors

Ownership rights are determined by the vesting on title. This means the way title is held directly affects whether another person or persons can inherit their interest without the need for probate.

Here are some scenarios in which ownership and titling structures come into play:

Trusts: If the house is held in a trust, the trust's terms dictate how the property is managed and distributed. Surviving Joint Tenants: In joint tenancy, the surviving joint tenant automatically inherits the deceased tenant's share of the property. Transfer on Death Deed: This states how the property should be transferred upon the owner's death, bypassing probate.

For these cases, the subsequent steps depend on state law and the specific terms of the vesting.

Properties with Single Ownerships and Wills

If the house was owned by a single person and there is a valid will, the property may be passed through probate. The executor or personal representative opens probate, files an estate inventory, pays creditors, and ultimately distributes the remaining assets according to the will.

If the deceased did not have a will, the process becomes an intestate probate. In this case, state law determines who inherits the property.

In both scenarios, estate creditors must be paid before any heirs receive their inheritance. This means the house might be subject to sale to cover these debts or to distribute the value of the remaining assets.

An example of this process is when the author's mother died, and the father had passed 20 years earlier. The two siblings and the author had to sell the house and split the proceeds among themselves.

Properties in Joint Tenancies

For property owned as joint tenants, the situation is simpler. The house passes directly to the surviving joint tenant without probate.

However, if the house was part of the estate in a joint tenancy situation and the estate went through probate, the probate records would be available at the probate/surrogate court of the deceased's residence.

Final Expenses and Estate Assets

Final expenses, such as funeral costs, are always paid before heirs receive their inheritance. If the estate needs additional funds, the house could be sold to cover these expenses or to distribute the remaining assets among multiple heirs.

Conclusion

The ultimate fate of a house after a homeowner dies varies based on ownership, vesting, and estate planning. Whether the house is transferred directly to a surviving joint tenant or passed through probate, understanding these legalities is essential for proper execution of the deceased's wishes and fair distribution of assets.