Living in a Deceased Loved One’s Home: What You Should Know

OAKLAND COUNTY — One common issue we hear about is when someone lives in a home that belonged to a deceased family member, long after their loved one’s death, without any transfer of title. Informal arrangements can lead to serious problems, both legally and personally, if there is more than one relative with a legal claim to share in the deceased person’s estate.

One problem arises when another heir contests the right to the house. But even when everyone agrees, issues can still occur. What if someone’s financial situation changes, and they suddenly need their share of the house? Or if relationships sour, and an heir no longer wants to share? What happens when an heir passes away, and their executor claims a share of the home? Proving that the deceased heir agreed to forgo their share can be challenging.

You might hesitate to go through probate due to an existing mortgage on the house. If you’re entitled to the home, you can usually secure your own financing. In some cases, close family members may take over the decedent’s mortgage, keeping the same monthly payments.

One crucial issue to consider is the potential liability for back rent. If you are living in the home of a deceased relative, there is a possibility that you could be responsible for rent for all the months or years you lived there after the relative’s death. This isn’t based on what you could afford or would have chosen to pay, but on the market rent value of the home. In today’s market, an average home in the metro Detroit area might rent for $2,000 per month. Over three years, that’s $72,000! Could you pay such a bill if it came due?

If you find yourself in an informal living arrangement in a home that does not have your name on the title, you could be asking for significant problems down the road. Consider consulting with an experienced probate attorney who can guide you through the benefits and pitfalls of your choice of actions. Addressing issues sooner rather than later is often less expensive and less stressful.

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