QUESTION
What are my liabilities and safety issues on a house I own but do not live in?
Asked on Apr 24th, 2017 on Estate Planning - California
More details to this question:
I will become the beneficiary of my father’s house. It is paid off. I will keep it and let my brothers live in it. I am married with kids and own a home already. If they do something stupid and get sued, or burn the house down, how do I protect myself and my personal home and family? Is there an inheritance tax?
2 ANSWERS
You will need liability insurance and rental agreements with your brothers even if it only for a nominal amount. There currently is no inheritance tax on estates of less that $2.4 million.
Answered on Jul 21st, 2017 at 10:20 PM
Civil Litigation Attorney serving Ventura, CA
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You should take out a standard homeowner's insurance policy that includes a rider for non-owner occupancy. The policy limits for the liability coverage can be negotiated, and I recommend it at least match or slightly exceed the value of your other assets. Also consider 'replacement-cost' for the hazard portion of the coverage, which means that if the house is destroyed it is replaced, but built to modern standards (i.e., "to Code").
Answered on Jul 21st, 2017 at 10:19 PM