Accepted Answer

Thanks for the information. I'm sorry for the delay. I was just about to hit "send" when my computer froze up.

 

First, you need to know that the beneficiary of your life insurance policy has no obligation to pay off the mortgage. Life insurance is considered to be outside of your estate. While you can make a request in your will that the life insuance or accidental death policy be used to pay off the mortgage, the beneficiary has no obligation to do so.

 

In order for the person you live with to be able to remain in the home after you are gone, you will have to give the person a "life estate." That will allow the person to remain in the home for the remainder of his/her life. After the person passes, the house would revert to your nieces. A life estate may be created by adding a provision in your will for it. Also, a quit claim deed may need to be created to also reflect your intentions.

 

You will need to have your will revised. You should contact an attorney who specializes in probate law. If an attorney created your original will, you may wish to go back to him/her to make the changes. If you created the will yourself, you really should seek the advice of an attorney. The transfer of property is very technical and I am sure you don't want there to be any mistakes that would derail your wishes. Many times, an initial consultation with an attorney is free.

 

I hope you find this information useful and that you PRESS THE GREEN ACCEPT BUTTON so that I can get credit for answering the question. Thank you.

 

Legal Disclaimer: This is for informational purposes only and does not constitute legal advice. No attorney/client relationship has been created.

 

 

Expert:	xavierjd
Pos. Feedback:	97.4 %
Accepts:
Answered:	10/29/2009

Attorney

17 years experience in all aspects of criminal law, landlord tenant, family law and small claims