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Richard, Attorney
Category: Estate Law
Satisfied Customers: 53721
Experience:  29 years of experience practicing law, including tax and estate planning.
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My father passed away 2 years ago without a will. I reported

Customer Question

My father passed away 2 years ago without a will. I reported his death to the county and the mortgage company at that time. A small estate affidavit was issued by the county and I have been paying the mortgage. What taxes will I be hit with if change the name on the mortgage so that I am financially responsible?
Submitted: 6 months ago.
Category: Estate Law
Expert:  Richard replied 6 months ago.
Good afternoon. My name is ***** ***** I look forward to helping you. You will not have any taxes due as the result of a transfer of the property and payment of the mortgage. There is no estate or inheritance tax in Virginia. And, on the Federal level, there is no estate tax on a small estate. With regard to the mortgage, there is no tax involved in you taking over the mortgage and the lender cannot accelerate the loan. Pursuant to 12 U.S. Code § 1701j–3 - Preemption of due-on-sale prohibitions:(d) Exemption of specified transfers or dispositionsWith respect to a real property loan secured by a lien on residential real property containing less than five dwelling units, including a lien on the stock allocated to a dwelling unit in a cooperative housing corporation, or on a residential manufactured home, a lender may not exercise its option pursuant to a due-on-sale clause upon— (5) a transfer to a relative resulting from the death of a borrower;(6) a transfer where the spouse or children of the borrower become an owner of the property; Thank you so much for allowing me to help you with your questions. I have done my best to provide information which fully addresses your question. If you have any follow up questions, please ask! If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service as OK, Good or Excellent (hopefully Good or Excellent). Otherwise, I receive no credit for assisting you today. I thank you in advance for taking the time to provide me a positive rating!

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