Broadway, NJ Estate Planning Law Firms & Lawyers

The answers to this question depend on the mortgage, and the terms of the will.  The will may stipulate that the heirs take the property subject to the mortgage.  If that's the case, the heirs can take over the mortgage payments, but technically, the heirs should have the mortgage redone in their name.  Changing the title to the property could cause an acceleration of the mortgage and require immediate payment.  A bigger question becomes, what happened to the proceeds of the second mortgage?  Did the decedent take that in a lump payment and it went to other heirs?   Can the first and second mortgages be combined and refinanced?  Rates are good now and it might be worth your while to qualify and re-do the whole thing.  

A deed has no legal effect until it is delivered.  Recording is the best evidence of recording.  If the recording date falls withing the 60 month Medicaid lookback period, the transfer might well be seen as a transfer for less than fair market value in an attempt to qualify for Medicaid. Please also note that in most states a quitclaim deed does not transfer title.  It is merely a public acknowledgement of an agreement to quit making whatever claim the maker may have to land, often to an easement over land.

If the trustee of the trust is also the grantor, a revocable trust usually indicates that upon the death of the grantor/trustee, the assets held in the trust are distributed.  The grantor/trustee could direct that the assets are distributed to the estate, or to beneficiaries, or can remain in trust with the second trust taking over.  What happens is all dependent on the terms of the trust.