My sister passed away and she had put her home in a trust of which I am the trustee. She had specified that the proceeds of her estate be divided in 4 equal parts — three for individuals, including me, and one to several non-profits.
She still owes a mortgage of about 300,000 on a home that is appraised at about 1,300,000.
My questions are:
- If I could come up with the money, could I offer to buy out the other 2 parties?
- How would the non-profits be treated? Would they all need to have a quit claim?
- Could I keep her original mortgage, or would I need to pay it off first in order to execute a buyout —
i.e. keep the 300K mortgage at her low interest rate, but then take a second and use some of my savings to pay the other shareholders?