Dear Penny: If my husband dies, do I inherit his share of my late mother-in-law’s property?
My husband and his brother are both heirs to their late mother’s property. My husband started probate as estate administrator seven years ago but has never finished the process. In the meantime, we live in the house, and my brother-in-law lives in an apartment over the garage. If something happens to my husband, do I inherit his share, as his will leaves everything to me. Or does it all go to his brother? Will I then be liable financially for anything related to his mother’s estate?
— Roommate-in-Law
Dear In-Law,
How this works depends on a few variables, so let’s start with those.
If you live in one of nine community property states, you might already have equal ownership of your husband’s share of the property as his spouse. If that’s not the case, you could work with the brothers now to get yourself added to the title to solidify your right to the home if your husband dies.
Another variable is how the ownership interest is noted on the title. If the brothers have joint tenancy, the title of the property would automatically transfer 100% to your brother-in-law if your husband dies. If they have tenancy in common, your husband can designate a beneficiary (e.g. you) to inherit his share of the property, and you’d become a tenant in common with your brother-in-law.
If you don’t have any ownership of the home, you could benefit from working with the brothers to create a simple lease agreement. That doesn’t have to mean paying rent, but work with a lawyer in your area (or a simple form through LegalZoom or similar) to put your rights and responsibilities into writing. That can ensure you’re all on the same page about whether you can stay on the property after your husband’s death, and what legal or financial responsibilities you’ll bear.
Dana Miranda is a Certified Educator in Personal Finance® and author of YOU DON’T NEED A BUDGET. She writes Healthy Rich, a newsletter about how capitalism impacts the ways we think, teach and talk about money.
