Elder Law Answers
How Do I Find Out If There Is a Medicaid Lien on My Mom's House?
How can I find out if Medicaid has a lien on my mother's house in Pennsylvania? She signed some papers that the state can...
Read moreThree of Us Own Mom’s House. How Are Sale Proceeds Split?
- May 31st, 2024
Q
My mother is 90 years old and owns a house with no mortgage. Seven years ago, she had trouble keeping up with taxes, so she added her daughter and her daughter’s husband to the deed. They paid the taxes with the understanding that they would get money back if and when the house was sold. She has now moved out of the house.
If the house is sold, would she only receive one-third of the profits? If she rented, would the money be split three ways? If she passed before the house is sold, would the other two owners receive the house, or can she will her share in the house? The agreement was never put in writing.
A
If the house is sold, the proceeds should be divided three ways with your mother receiving a third. This is also true of any rental income. A key issue after your mother’s death is whether she, your sister, and your brother-in-law own the property as joint tenants or as tenants in common.
If they own it as joint tenants, upon your mother’s death her interest will automatically disappear and your sister and brother-in-law will be the sole owners.
If they own it as tenants-in-common, your mother’s one-third interest will pass to her estate and will be distributed according to her will, or if none, equally to her children. Whatever the ownership interest, your sister and brother-in-law can still distribute the proceeds according to the original agreement, but with nothing in writing that agreement is probably not legally enforceable.
For more information about joint tenancy, check out this article.
Last Modified: 05/31/2024