Inherting a Property with a Mortgage
| In the scenario where a home is unequally left to several decedents and there is a mortgage. Is the | ||
| mortgage satisfied FIRST from the net proceeds before the proceeds are distributed accordingly to the will (%) | ||
| (Scenario One) or is the mortgage satisfied by the decedents based on the % of ownership of the property each has been left in the will (Scenario Two) | ||
| Property is in Louisiana | ||
| Scenario One | ||
| 235000 | Sales Price | |
| -350 | Transfer Deed (Seller Closing) | |
| 234650 | Total Proceeds | |
| -87000 | Mortgage Payoff | |
| 147650 | Distributable Proceeds | |
| 18456.25 | 1/8 - Child 1 | |
| 18456.25 | 1/8 - Child 2 | |
| 92281.25 | 5/8 - Child 3 | |
| 18456.25 | 1/8 - Child 4 | |
| Scenario Two | ||
| 235000 | Sales Price | |
| -350 | Transfer Deed (Seller Closing) | |
| 234650 | Distributable Proceeds | |
| 90000 | Mortgage | |
| Proceeds | Share of Debt | |
| 29331.25 | 11250 | 1/8 - Child 1 |
| 29331.25 | 11250 | 1/8 - Child 2 |
| 146656.25 | 56250 | 5/8 - Child 3 |
| 29331.25 | 11250 | 1/8 - Child 4 |