The agreement doesn’t go away when you die. It stays on the home, and whoever ends up with the house settles it, usually by selling or refinancing, or with some companies keeps it going until the original term ends.
If a co-owner on the agreement survives you, very little changes. If you were the only owner, how much time your heirs get depends a lot on which company you used.
Our take: If leaving the house to your kids matters to you, read the death section of the agreement before you sign, not after. Unison gives heirs a 180-day grace period to settle, while Point and Splitero keep the original term in place. That’s a big difference for a family that isn’t ready to sell.
What happens to an HEI if you die, in plain terms
An HEI is secured by a lien on your home. That lien doesn’t care who owns the house next, so it stays put until someone settles the agreement.
If you co-own the home and the other owner is on the agreement, they keep living there under the same deal. Hometap, for example, says there are no changes to the agreement when one of two homeowners passes away.
If you’re the only owner, the home passes to your estate or your heirs along with the agreement. From there, they either settle it or, where the company allows, take it over.
No one inherits a monthly bill, though. There wasn’t one to begin with.
What each company does when a homeowner dies
| Company | If a co-owner survives | If you were the only owner |
|---|---|---|
| Hometap | No changes to the agreement. Hometap asks for a copy of the death certificate. | The obligation to settle passes to your estate and the lien stays on the home. The person taking over the property contacts Hometap and could sign a joinder document to be added to the investment. |
| Point | The agreement transfers to the co-owners. | The agreement is assumable by your estate or heirs. Payment isn’t accelerated, the original term stays the same, and heirs are asked to sign an assumption agreement. |
| Splitero | Not addressed separately on its FAQ. | The agreement runs with the land, so its terms stay in place for your heirs until it’s repurchased. |
| Unlock | Not addressed separately on its FAQ. | Heirs inherit the home subject to the agreement. They can sell, buy out Unlock’s share or, in some cases, continue it until the end of the term. |
| Unison | The agreement continues if you’re survived by someone else on it. | Your heirs or estate have to settle after a 180-day grace period, which may mean selling or refinancing. |
From each company’s own FAQ or help pages. Your signed agreement controls, so check the death and transfer sections in it.
See the split? Point and Splitero let the deal ride for the rest of the term. Unison wants it settled within about six months. Hometap and Unlock land in between, with a path for the person taking over the home.
The Consumer Financial Protection Bureau lists the death of the homeowner among the events that could bring a home equity contract due. So check yours. For older homeowners comparing options, our guide for retirees lays out the alternatives.
Your heirs’ three options
So what can your family actually do once you’re gone? It comes down to three choices.
Sell the home and settle from the proceeds
This is the most common route, and the simplest. The sale price sets the home’s value, the HEI company gets its share at closing, the traditional mortgage gets paid off, and the heirs keep what’s left.
Keep the home and buy out the company
Heirs who want the house could settle with savings or a new loan, like a cash-out refinance or a HELOC. Point names both as ways heirs can settle. Expect a fresh appraisal to set the value, since the amount due is a percentage of what the home is worth at that point.
Keep the agreement going, where allowed
With Point, heirs take over the agreement for the rest of the original term. Unlock allows it in some cases, and Splitero’s terms stay in place for heirs. Hometap offers a joinder document so the new owner can be added to the investment.
Keeping it going buys time, but it doesn’t change the math. The home keeps growing, and so does what’s owed at settlement. Every option still ends with a settlement, and our guide to refinancing with an HEI covers how that works when a refinance is the plan.
What your heirs could end up with
Here’s one example. Say you received $50,000 from Hometap on a $500,000 home, and you pass away in year 6 with the home worth $605,774 after 3.25% yearly growth. There’s still $200,000 left on your traditional mortgage.
| Item | Amount |
|---|---|
| Sale price | $605,774 |
| Hometap Share at 18% of the home’s value | $109,039 |
| Traditional mortgage balance (our assumption) | $200,000 |
| Left for your heirs before selling costs | $296,735 |
Example only. The 18% is Hometap’s published percentage for a 10% investment settled in years 6 to 10, and it’s below the Hometap Cap here. Selling costs and fees come out on top.
So the HEI takes a real bite.
But your heirs aren’t stuck with a bill out of their own pockets, because the home pays for it.
On taxes, heirs generally take a basis equal to the home’s fair market value on the date of death, according to IRS Publication 523. If they sell for about that value soon after, there may be little or no gain to tax. More on the tax side in are HEI proceeds taxable.
What heirs should do first
- Find the HEI agreement and the closing papers. The company name, the percentage and the term are all in there.
- Contact the company with a copy of the death certificate. Hometap, for one, asks for it.
- Ask what the deadline is. With Unison it’s a 180-day grace period, and other companies keep the original term.
- Request a settlement estimate so you know the number before you decide anything.
- Decide whether to sell, buy out the company or keep the agreement going, if the company allows it.
- Talk to the estate’s attorney before signing any assumption, joinder or sale documents.
How to plan ahead if you have an HEI
Talk to your heirs.
Unison and Unlock both say it plainly: make sure the people who’ll inherit your home understand the agreement and what it means for them.
Keep the agreement with your estate papers, too.
Put the company’s contact info, your account details and the term end date somewhere your executor can find them.
Who’s on the agreement with you? That matters more than people think.
When a co-owner on the agreement survives, the deal usually just continues. If you’re the only owner and you want the home to stay in the family, ask an estate attorney how title should be held before you sign.
And if you haven’t signed yet, compare the death terms side by side. A company that keeps the original term in place, like Point or Splitero, gives your family more breathing room. Our comparison of HEI companies and HEI pros and cons are good places to start.
Get an estimate from Unlock, where heirs can sell, buy out the agreement or, in some cases, keep it going until the end of the term.
Bottom line
An HEI doesn’t die with you. It stays on the home until it’s settled, and your heirs settle it from the house itself, usually with a sale or a refinance.
Bottom line: the company you pick decides how much time your family gets. If that matters to you, ask about it before you sign.
An HEI could still make sense for you if you have at least 25% equity in your home, it’s located in an eligible state, and you’ve talked through the settlement plan with the people who’d inherit it.
HEI and death questions, answered
The agreement has to be settled at some point, but the home covers it, not your heirs’ own money. They could sell and settle from the proceeds, buy out the company, or with some companies keep the agreement going until the original term ends.
Yes, if they can settle the agreement or the company lets them take it over. Point’s agreement is assumable by heirs for the rest of the original term, and Unlock allows heirs to continue it in some cases. Otherwise they’d settle with savings or a refinance.
It depends on the company. Unison gives heirs a 180-day grace period. Point keeps the original term in place, and Splitero’s terms stay in place for heirs until the agreement is repurchased.
If you’re the sole homeowner, the obligation to settle passes to your estate and the lien stays on the home. If there’s a second homeowner, the agreement doesn’t change. You can read more in our Hometap review.
Then not much changes. Hometap says there are no changes when one of two homeowners passes away, Point transfers the agreement to co-owners, and Unison’s agreement continues when someone else on it survives.
Heirs generally take a basis equal to the home’s fair market value on the date of death, under IRS Publication 523, which could leave little gain if they sell soon after. How the HEI payment fits into their tax picture is a question for the estate’s tax pro.
How we put this together
This guide is Banks Done Right’s editorial view. The company rules come from Hometap’s FAQs and its life events post, Point’s help center, Splitero’s FAQs, Unlock’s FAQs and Unison’s FAQs. The CFPB point comes from its report on home equity contracts, and the basis rule from IRS Publication 523.
The dollar example uses Hometap’s published percentage, 3.25% yearly growth and a traditional mortgage balance we picked to keep the math simple.
| What we looked at | What we checked |
|---|---|
| Surviving co-owner | Whether the agreement changes |
| Sole owner | Whether the agreement passes, is assumable or must be settled |
| Timing | Grace periods and whether the original term stays |
| Taxes | The inherited basis rule |
Sources
- Hometap: FAQs and “Your Home Equity Investment Through Life Events” (hometap.com)
- Point: Help Center, “What happens to the HEI if I pass away?” (help.point.com)
- Splitero: FAQs, “How would a Splitero investment affect my heirs?” (splitero.com)
- Unlock: FAQs, “How does an HEA affect my heirs?” (unlock.com)
- Unison: FAQs, “What happens to the Unison agreement if I pass away?” (unison.com)
- Consumer Financial Protection Bureau: Home Equity Contracts, Market Overview
- IRS Publication 523 (2025), Selling Your Home
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Keep reading
GuideHome Equity Investment Pros and ConsWhat you gain and what settling could cost.
GuideHome Equity Options for SeniorsComparing options for retirees.
GuideAre HEI Proceeds Taxable?What the companies and the IRS say.
Terms, pricing and availability change. Check the current terms in your agreement and on each company’s site.