Children under age of 18 inheret home with loan

[Horacio Gutierrez]

Hello, My co-worker brother and wife passed away in car accident leaving a baby behind. His brother had a trust which give one of the grandparent custodian to manage there boy assets until age of 18. They are wondering can the grandparent keep paying the previuos home loan by renting the home to pay off the mortgage or he paying the mortage from his work pay check. They dont want to lose the home and sell it. Want to keep home under baby name, what can they do?

[Chris Mason]

Originally posted by @Thomas S.:

Why would they not choose to sell. It seams the easiest and most logical approach.

They can do as they choose to carry the property provided all profits and losses are attributed to the trust....  but keeping it would be a mistake. Sell and put the money in a trust and turn it over to a financial advisor.. 

Some people do the strangest things.

 OP is in CA; if the property is also in CA then the inheritor gets to bank the parents/grandparents property tax basis/bill. If the property was originally purchased by the deceased 40 years ago, that could be $400/mo in bonus cashflow that can only exist if it's kept with the kids/grandkids of the deceased, on top of whatever a standard/vanilla cashflow analysis would reveal. Prop 13 makes dynasty creation tax advantaged in California. It's worth exploring keeping the property in the family IMO. 

EDIT: Link for OP; some of this paperwork has a time limit so your friend needs to jump on this first and foremost, now that I think about it.