Life Estate Planning includes adding your beneficiaries to your assets so that they are already owners of that asset when you pass. For real estate purposes, these beneficiaries are added to the Property Title. When this happens, you may wonder whether the liabilities on the home count as debt when purchasing your own home. For conventional home financing, if you are on the Title but not on the note, none of the debt associated with the property is counted as your personal debt, including property taxes, insurance, and HOA fees.
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Life Estate Planning includes adding your beneficiaries to your assets so that they are already owners of that asset when you pass. For real estate purposes, these beneficiaries are added to the Property Title. When this happens, you may wonder whether the liabilities on the home count as debt when purchasing your own home. For conventional home financing, if you are on the Title but not on the note, none of the debt associated with the property is counted as your personal debt, including property taxes, insurance, and HOA fees.

ByBrandon Butler

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Community Property States can be challenging when one spouse wants to buy a home independently of the other spouse. To omit non-borrowing spousal debt in a community property state, you must document that the borrowing spouse cannot be held legally liable for the debt. If you live in a community property state, let’s chat about your options before you start house hunting!
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Community Property States can be challenging when one spouse wants to buy a home independently of the other spouse. To omit non-borrowing spousal debt in a community property state, you must document that the borrowing spouse cannot be held legally liable for the debt. If you live in a community property state, let’s chat about your options before you start house hunting!

ByBrandon Butler

A subscription is required to access this content—please view our available subscription options. If you are a current subscriber, please log in.