Posted by andrea arellano on September 24, 2005 at 19:42:33:
I got married and my husband bought the property before do I need to hire a lawyer to add my name to the deed
adding name to deed questions…plz help! - Posted by California Kelly
Posted by California Kelly on March 10, 2005 at 21:27:55:
My Mom owns a home that both parents bought. My Dad passed away last year and I will be purchasing the home in 4 months once I pay down some debt. I have no down payment. I have some questions.
My Mom wants $50,000 net. FMV=$350,000 she is asking $250,000 she has an existing mortgage of $195,000. The mortgage is not assumable.
I wanted her to take out a second for her $50,000. Then maybe form a corporation with her and have her keep the existing mortgages, I would make the payments. I don’t know about gift tax, how do we avoid that?
I would like to be on the deed now so if something were to happen to her, the house would not be held up. (I am currently renting the home) We don’t know how to go about this…checked the archives…still unclear.
I don?t know much about this. Please suggest some creative options.
Thank you,
Kelly
This was posted earlier in the legal forum also…unsure of where to ask.
Re: adding name to deed questions…plz help! - Posted by nick
Posted by nick on March 11, 2005 at 10:29:54:
You can try to execute a deed-transfer refinance. With this your mother can quit claim the property over to you and then you refinance in your name. There is no transfer tax on this and all you have to pay is recording fees on the deed and mortgage. This is allowable because it is a transfer between parent and child which is tax exempt.
Re: adding name to deed questions…plz help! - Posted by Craig(NH)
Posted by Craig(NH) on March 11, 2005 at 10:19:46:
Kelly,
I believe there is a way for you to assume your mothers mortgage without invoking the Due on Sale. The Garn-St. Germain Act details certain transactions where a loan can be taken over without the lender being able to call the due on sale.
The one that may interest you is:
A transfer where the spouse or children of the borrower will become an owner of the property;
The following article may also help:
I am not a lawyer and would advise you to consult one when dealing with a transaction such as this.
Good Luck!
you don’t consider the stepped up basis… - Posted by David Krulac
Posted by David Krulac on March 11, 2005 at 06:10:00:
in the Federal Income Tax laws it will be much better for you to inherit the house and pay absolutely NO tax on the value of the property at the time of the inheritance. Two things both bad happen to be put on the deed now:
- your mother will possibly owe Federal and possibly state income tax NOW.
- your basis in the property would be your purchase price now which translates into big capital gain tax later.
Even if you mother is able to use the $250,000 tax free exemption now for her personal residence for 2 of the last 5 years and she owes no taxes, if will still effect your taxes down the road.
One possoible alternative is for your mother to get a second mortgage for the extra $50,000, then take the proceeds and let you pay both mortgages and you live there. Another alternative is for your mother to gift interest in the property tax free. I beleive that its $11,000 per year. And if your married she can gift your spouce and children each $11,000 per year.