Title Insurance on Inherited Home

[MagicSeven]

What is the name of your state (only U.S. law)? I live in Illinois.

Hello.

I just found out that I am going to inherit property some day. This property has more money owed on it than it was purchased for. Will title insurance do any good at this point? I understand it is used primarily for property being purchased, but I found something on-line (must be true...ha) where it is used to insure inheritance. Could this be true?

Thank you all in advance.
7

 

[justalayman]

You are misunderstanding the purpose of title insurance. It is to insure the title against claims. When they issue a policy, the research the title history and will specifically exclude coverage for known issues. The lien against the title from the current debt will be one of those exceptions.

Life insurance is what is needed in your situation.

But beyond all of that, what makes you so sure you will inherit anything? If there are debts against the estate, they will be paid before it can even be know whether there are any remaining assets to distribute.

 

[MagicSeven]

She just said, "I left the house to you in my will." She doesn't understand the rest. Thank you for your response. I will look into life insurance.