Until that distribution, however, he lives only on his Social Security check. Thus, he lacks the funds to purchase her house. My other brother and I see a benefit to having him occupy the house. We're having trouble securing homeowner insurance on an unoccupied house. Some companies will not write a policy unless the home is owner-occupied.

We are thinking about selling him the house at its current market value, with my mother taking back a mortgage that would be satisfied at the time the estate is distributed. Presumably, my mother would be eligible for the $250,000 exclusion from profits on the proceeds from the sale of her residence, since she has lived there for two of the past five years. My brother would get a cost basis equal to his purchase price.

Would this work? Would my brother need to pay interest on this type of mortgage? My mother has no need for current income.

A: I'm sorry that your mother is not well. It sounds like you and your brothers are able to think about her and her estate clearly and are trying to provide for each other. That's very helpful all around.

It's clear from your letter that having your brother move into your mother's unoccupied house would be a good idea for everyone. But I am not sure why your brother needs to purchase the house now.

Is there a reason why he can't just move into the property and pay some sort of nominal rent to your mother so that the costs of ownership would be covered? She probably doesn't have much of a mortgage, if any at all. By moving in, he can live there cheaply, take care of the property and you can get insurance.

When your mother dies, it sounds like your brother will have additional resources. At that time, the house will pass into the estate at its current market value. When you divide up the assets, you and your other brother may decide to "sell" the property to your third brother, or you may decide that as part of his share of the estate, he receives title to the property. As long as he can afford to pay the costs of ownership, including taxes, insurance, maintenance and upkeep, he may decide that owning the property free and clear is what he really wants.

The three of you should discuss the details of your mother's estate, and what each piece of it is worth. Then, sit down with an estate planner or attorney and discuss whether his buying the house now, or receiving it as an asset, is the right choice.

Q: My father passed away and left an estate valued at $5 million dollars. I have been named as administrator of the estate. We have paid most of the estate taxes but still owe $300,000 to the government.

In the estate is a building valued at $2 million with no mortgage. Could we get a mortgage to cover the $300,000 we owe to the IRS?

A: My condolences on the loss of your father. With so much equity in the building, you may be able to get an equity line of credit for $300,000 or more to cover the tax bill that is due.

While it isn't easy to get loans these days on investment properties, the amount you're borrowing relative to the equity in the property should make it easier for a lender to approve this loan. Also, if the property generates income that can support that size mortgage, the lender may not have trouble with it.

Please talk to a well-capitalized local bank that has an interest in the area in which the building is located as well as some other larger lenders. If you can't get a loan on the property but have a lot of equity in your own home, you might consider taking out a home equity line of credit that would allow you to pay the government while giving you a tax deduction.

For more details and perhaps other suggestions, please discuss the situation with a real estate attorney.

To get even more valuable advice from Ilyce, visit her Personal Finance and Real Estate Center.

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