My mom is the sole remaining owner since dad died.
For probably some 2 decades, she and my dad let their cleaning lady use their address. Basically for cheap car insurance, because otherwise it would be “in the hood” and since she’s poor…we’ll, you get the idea.
Thing is just about everything is showing up at moms house. And her daughter’s things are too.
My big concern is that she might try to use this as a “squatting” type excuse to take the house on her death.
One thing I’m thinking could help is that my cousin actually lives in the house, and has for that long as well, whereas she is “fake”.
As I said, LLOOONNG story. I’m trying to be brief.
Any wisdom on keeping this from being a sticky situation for the estate?
Um...a lawyer?
A lawyer could tell you the legalities of moving their stuff out, and telling the people using the address that they can’t anymore.
(I know a lot of people here hate lawyers - but when you need a good one, they’re invaluable.)
By allowing her to use your mom’s address your mom was committing insurance fraud for starters.
You need to go to lawyer and police pronto and nip this in the bud.
Do not try to cover anything up...as in politics the cover up is worse than the crime.
Whose name is on the title of the house?
Get another name on the deed. That way when she passes, the ownership will transfer directly to that person—it never goes into the estate.
Get another name on the deed. That way when she passes, the ownership will transfer directly to that person—it never goes into the estate.
If you allow her to live there for long enough she can indeed claim ownership of the property under adverse possession laws. Make her sign a lease that says she will pay rent or perform some service of value in exchange for her continued use of the address. And get her daughter’s belongings out ASAP.
IF she gives you problems tell her you will turn her into the police for insurance fraud.
In theory the cleaning lady might try to put in a claim on the estate for services rendered.
My aunt had a lawn guy who didn’t bill regularly. He put in a claim for $1700 which the estate paid. The guy had debt problems so I don’t think he let himself not get paid for about a year before she died.
Does the cleaning lady have keys to the locks or security code? If so change them tomorrow
There is no bigger "break" in the tax code than the ability to inherit the home at your folks' original (or...refinanced) basis. Therefore, there is no bigger mistake you can make than to change the titling on the house or execute some sort of too-smart-by-half maneuver "to get it into your (or another heir's) name". You don't have to do anything to transfer title to the lawful heirs, as long as the house is included in her will. Included in her will and accompanied by a certified copy of her death certificate, title transfer is a low cost, routine clerical matter.
You may have to do an eviction once you (and/or you co-heir) properly obtain title. An eviction is not pleasant but it is not difficult and should cost well under $500.
Your post is confusing, if the maid is living there, then it is her home address, thus not insurance fraud. If she isn’t living there, and just using the address for cheaper insurance, she is the one committing insurance fraud, not your mom. If she is living there and still working for your mom, terminate her employment and ask her to move out. There are plenty of maid services out there.
Your post is confusing, if the maid is living there, then it is her home address, thus not insurance fraud. If she isn’t living there, and just using the address for cheaper insurance, she is the one committing insurance fraud, not your mom. If she is living there and still working for your mom, terminate her employment and ask her to move out. There are plenty of maid services out there.
That means, if they bought the house 30 years ago for $30K and it is now worth $100K, you inherit it at a value of $100K. Thus if you should sell it for $100K, you owe no taxes because you "bought" it for $100K and sold it for $100K.
If the nominal tax rate in your state is roughly 1/3rd, you would owe 1/3 of $70K or $23.3K if you execute some sort of sale before she passes. There is no need whatsoever to incur this tax hit.
The issue of defrauding the insurance company may never come into play relative to title to the home. Hopefully, she never made a claim.
She never lived in the home and the evidence will show she had her own residence.
Through legal counsel, you may want to put the property in a family trust. Get title insurance and that should solve your concerns.
Simple: Buy a biohazard suit lookalike, send your cousin home to the house hacking & wheezing, fresh out of the sauna (sweating like a pig), if they’re home have him put on a conniption display while ripping off the suit, scare them out of the house, change the locks, put their crap on the curb.
My Parents did a Living Trust and when Dad Passed Away EVERYTHING Transferred over to Mom: House and Land, All Insurance, All Banking and Credit Union stuff, Vehicles, etc.
There was a Ring Binder setup by the Lawyer and all We had to do was show the applicable pages to whoever was on the other side of the counter or desk and the transfer was done within a few minutes.
For example Mom gave Me Dads car and the land (a single Lot approximately .5 acre) and it took place at the County Tax Office in a few minutes, filling out forms and Signatures. Done, no fees or transfer costs.
The House and that Land went right over to Mom.
The Bank and Credit Union was done in a few minutes as well.
Utilities, just a phone call and a fax or two. Done.
This was in Texas but I don’t think it makes much difference where one is located.
I hope that this information is helpful to You.
/////////////////////////////////////////////////////////^\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\
What Is a Living Trust?
A living trust provides lifetime and after-death property management. If you are serving as your own trustee, the trust instrument will provide for a successor upon your death or incapacity. Court intervention is not required.
Livings trusts also are used to manage property. If a person is disabled by accident or illness, the successor trustee can manage the trust property. As a result, the expense, publicity, and inconvenience of court-supervised distribution of your estate can be avoided.
If a living trust is properly written and funded you can:
Avoid probate on your assets
Plan for the possibility of your own incapacity
Control what happens to your property after you are gone
Use it for any size estate; and
Prevent your financial affairs from becoming a matter of public record
Have your mother put the house into a trust with a trusted person as successor trustee.
It]f it’s been 20 years, I wonder if adverse possession laws might come into play?
You need an attorney and a good one. Quick.
It]f it’s been 20 years, I wonder if adverse possession laws might come into play?
You need an attorney and a good one. Quick.
Why not just redirect their mail via USPS change-of-address, back to where it belongs? Then the next weekend change the damn locks.