See below

Question

My husband and I have lived with my mother for 15 years. we pay all iof the household bills. The house is in a trust in my and my sister's name. When my mom dies, we both want to sell the house. While my husband and I look for a place to live, we plan on living in the house and paying all of the bills that we already pay. How long are we allowed to stay in the house? If property taxes and home insurance need to be paid, does that money come from my mom's checking account?

Julie King · Answer

You didn't say if your half of the home is in your trust and the other half in your sister's trust (which is the most common way to do it if you already own the property) or if the property is in your parent's trust but your sister and you are named as beneficiaries of the property in your parent's trust. There is a difference.  
 
First, if the property is in your parent's trust, it is possible that your parent could change the names of the beneficiaries, so I wouldn't count my chickens before they hatch. I've seen people change their minds a number of times and amend their trusts. But assuming the property is in your parent's trust, and your sister and you are named as beneficiaries when your mother passes, then the person(s) named as trustee(s) MUST follow the terms of your parent's trust.  The trustee of your parent's trust is required by law to do what your parent said they wanted the trustee to do. So, for example, if the parent's trust gives the trustee discretion to allow one person to stay in the home, then it can be done, so long as the terms of the trust are followed.  
 
One of the most common mistakes people make in Trust Administration (that's the name of the process trustees follow after someone passes away) is beneficiaries thinking the assets sitting in a parent's trust is THE BENEFICIARY'S asset because the parent died. That is not true. While the asset is in the parent's trust, it belongs to the trust and the trustee MUST handle that property in the way the trust says. It will not belong to the beneficiary until the asset is TAKEN OUT OF THE TRUST and handed to the beneficiary. At that point, a beneficiary can do whatever they want with the asset.   
 
On the other hand, if the property is in your sister's and your respective trusts, the two of you can amend your trusts to do whatever you would like. Best wishes!

James L. Arrasmith · Answer

Your situation involves complex trust and estate matters that will require careful consideration. The length of time you can stay in the house after your mother's passing depends on several factors, including the specific terms of the trust and any agreements between you and your sister as co-beneficiaries.  
 
Since you've been paying the household bills, this demonstrates your commitment to maintaining the property. However, once your mother passes, all expenses related to the house - including property taxes and insurance - would typically be paid from the trust or estate assets until the property is sold. Your mother's checking account would become part of her estate, and those funds would be distributed according to her will or trust documents. 
 
You should have an open discussion with your sister about establishing a reasonable timeframe for you to find new housing while continuing to pay the regular household expenses. Many families in similar situations agree on a 6-12 month transition period, but this timeline can be adjusted based on your local housing market and personal circumstances. It would be wise to document any agreement you reach with your sister in writing to prevent misunderstandings later.

Q: See below