Will for private property

[luckygal]

Dear all

Can I seek the advice of all. If I own a pte property and I intend to make a will to will to my sister. Should I pass on and she takes over the house, I believe she has the option to keep and rent or sell. Am I right in this?

Next, if she decides to sell, would there be any circumstances that instead of the proceeds from the house helping her, she has to fork out money for the house. Assuming there is outstanding loan. I do not want like will to her with good or neutral intention but ended up burdening her instead.

Thanks

 

[highsulphur]

If you are the single owner, you can will it to your sister.

If the house isn't fully paid, then she has to take over the loan. If the value of the house dropped below the mortgage, the bank may ask for margin call. Otherwise, she should get some money if she chooses to sell the property.

 

[luckygal]

If you are the single owner, you can will it to your sister.

If the house isn't fully paid, then she has to take over the loan. If the value of the house dropped below the mortgage, the bank may ask for margin call. Otherwise, she should get some money if she chooses to sell the property.

Thanks. That's what most people said too, though they are not 100% sure. If she can't or doesn't want to take over the loan, she has the option to sell. Depending on how much she is able to sell then, more or less she should make some money.

 

[henrylbh]

Dear all

Can I seek the advice of all. If I own a pte property and I intend to make a will to will to my sister. Should I pass on and she takes over the house, I believe she has the option to keep and rent or sell. Am I right in this?

Next, if she decides to sell, would there be any circumstances that instead of the proceeds from the house helping her, she has to fork out money for the house. Assuming there is outstanding loan. I do not want like will to her with good or neutral intention but ended up burdening her instead.

Thanks

Yes she has option to keep the inheritance or sell it off.

Even with a will, the lending bank has a lien on the property. So she either settle the outstanding loan or sell off the property to pay off the loan or she take over servicing loan, if she is eligible for a loan.

If the property value is lower than the outstanding loan, can forget about the inheritance instead of carrying the burden.

 

[luckygal]

Yes she has option to keep the inheritance or sell it off.

Even with a will, the lending bank has a lien on the property. So she either settle the outstanding loan or sell off the property to pay off the loan or she take over servicing loan, if she is eligible for a loan.

If the property value is lower than the outstanding loan, can forget about the inheritance instead of carrying the burden.

Thank you so much. That means if she decides to sell, she would not be burdened with the house loan. She can kind of 'get rid' of it. So even if she cant sell at a good price, she doesn't have to fork out money right.

 

[highsulphur]

If you want to take one step further, you can always take a term or mortgage insurance against the outstanding loan. In that case, the property will be loan free...