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children to inherit investment

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jerry_l54

Guest
i live in rhode island, my wife and i (both our 2nd marriage)recently purchased a home. my wife invested money for the downpayment. I have agreed that in the event of her death that i will sell the house and distribute her investment between her 2 children. could you tell me the best to do this legally. thank you.
jerry
 


ALawyer

Senior Member
Let's assume she invested $100,000 equity on a $400,000 home and you took a $300,000 mortgage for the balance.

Clearly as a matter of equity she'd intend that you move out, sell the house and get her kids the $100,000 (or however much is left, after real estate commssions and paying off the mortgage) of the equity if she died today. Sounds fair.

BUT what is she dies in 15 years? And YOUR income paid off a good part if not all the $300,000 mortgage in the interim? And made improvements? And suppose also the house was a good investment and was at her death was worth $900,000? OR you wanted to continue to live there? Not so simple?

If you don't have any kids, and never expect to have any, and don't have any other family you want or need to to provide for (a parent, sibloing, neice, etc) leaving the whole sales price to her kids seems fair.

A WRITTEN agreement that not later than 2 years after her death or 10 days after the sale of the proeprty, which ever comes first, you would pay the kids the LESSER of $100,000 OR the amount the house sells for in a bona fide sale (net of the current mortgage balance, real estate commissions and fix up expenses) , would likely do what you both want. You could still live there for a period, decide to sell it or refinance it -- perhaps wioth a second mortgage to pay off the kids -- they'd get the $100,000, and if the house appreciates, you'd get the appreciation.
 
J

jerry_l54

Guest
jerry_l54 said:
i live in rhode island, my wife and i (both our 2nd marriage)recently purchased a home. my wife invested money for the downpayment. I have agreed that in the event of her death that i will sell the house and distribute her investment between her 2 children. could you tell me the best to do this legally. thank you.
jerry
Thank you for your response.
What type of legal document would I need to have prepared to ensure her that this will happen in the event of her death?
Thanks Jerry
 

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