Yes, the estate can and should pay the mortgage to preserve the asset.If the named beneficiary does not want the gift, they would disclaim the interest in writing pursuant to local law and it would then pass to the next named heir or as part of the residuary.

Tax attributes of the gain (i.e. short-term, long-term gain) that are deferred are preserved through the deferral period until income is recognized. 

In these cases its all about capital preservation..

(e.g. contiguous)- Comprised of 4 parcels:P1 - 70 acres with 2250sqft 200yo house and 20yo barn.P2 - 35 acres with under conservation easement.P3 - 5 acre minor sub division home lotP4 - 5 acre minor sub division home lotSITUATION- Seller is 70yo and retiring in 2019- Seller has heIrs who are absent and uninterested in owning the property (will eventually sell inheritance)- Seller is a frIend and neighbor of the famIly- Seller (and our famIly) have preservation/non-development hopes for land in the neIghborhoodOUTCOMESFor the Sellers:- Immediate cash lump sum (property needs some work)- "Guaranteed" monthly/annual payments for deal term- Retain ownership and occupancy of real estate until they vacate- Seller retains ownership if buyer defaults- Continuity of neighborhood legacyFor the Buyers (us):- Acquire property rights- Fixed sale price- Known caretaker/occupant- Continuity of neighborhood legacyDEAL OPTIONS- $450-500k sale price- 10% down- 20 year term- 0% Interest- Land ContractThis seems like a good option to consider in terms of managing tax impacts to both parties, but at the cost of fewer “ownership rights” for both parties.- Seller FinancingThis seems like a good option to consider in terms of better “ownership rights” for both parties, but at the cost of trickier tax implications.

Trying to think win-win to preserve friendship and also benefit rental business. 

A good resource to look for local contractors will be to reach out to the Window Preservation Alliance. 

Present them with some deals and you'll quickly find out what they are and aren't comfortable with.My foreign investor clients are looking primarily for preservation of capital.

Although with leaving the windows open and it raining, you could argue that it's an emergency and you need to preserve the property. 

Thank you for sharing your story.  1st goal: Capital Preservation.  2nd goal: cash flow.  3rd goal: grow that nest egg.  

So the apartments are still perfectly intact and well preserved, kitchens, entrances and all, even the appliances which work great!