This comes up frequently: A parent has someone living with them, usually a child, maybe a significant other. When the parent dies, usually all the kids inherit the house, but they want to permit the sibling or significant other continue to live there.
Is this allowed? Yes.
First and foremost, if you are the parent reading this, and if you want your child or significant other to continue living in the house after your passing, you can make things easier for everyone later and have your wishes “set in stone” by seeing an attorney while you are living.
But if you are one of the kids reading this, and your parent did not do this advanced planning, it is still entirely possible to help the sibling or significant other stay in the house.
While selling the house is the typical next step following a death, instead, the family can hold the home, and all of the heirs could agree in writing to allow the person to continue living in the home. You’d want to draft a “right of occupancy,” which is a simple agreement (maybe one page) outlining what costs the occupant will be responsible for (utilities, taxes, homeowners insurance, etc.) and under what circumstances the right to occupancy ends (failing to pay bills, choosing to move out, etc.).
There is some risk to the heirs in the sense that owning real estate always involves risk. On the other hand, if you sell the house and put your share in the market, there’s risk there too.
It’s best to meet with an attorney to discuss the pros and cons of allowing someone to continue living in the house after the kids have inherited it, and to help you draft the agreement.
With just a little bit of work, you can continue to honor your parent’s wish to provide a home for their loved one.
About the Author: Alexis Levitt practices elder law, special needs planning, estate planning, and veteran’s benefits. She sits on the board of the Massachusetts chapter of the National Academy of Elder Law Attorneys and represents it on the Massachusetts Coalition for Serious Illness Care. Alexis also sat on the board of the Norwell Council on Aging. Her office is in Norwell. You can reach her at 781-740-7269 or visit her website and blog for more information at www.alexislevitt.com.