Posted by Natalie-VA on September 22, 2006 at 09:47:51:
Barry,
I’m not an attorney or CPA. You might want to check with one before receiving that gift deed. You could be creating a huge tax liability for yourself. It’s my understanding that it’s much better to inherit property rather than receive it as a gift.
–Natalie
Gift Of Deed & existing mortgage question - Posted by Barry
Posted by Barry on September 21, 2006 at 17:55:24:
Hi All,
I was wondering if someone could answer a question for me.
My Mother is in failing health and trying to get her affairs in order, her Will, etc.
She ownes a SFH in which she lives, w/ a approx. mortgage bal. of $90,000 and approx. $90,000 in equity as well. She wants to leave the home to me upon her death.
My plans for this house are to keep it as a long term rental and deed it into my existing LLC.
Our plans are for her to Gift Deed me the house.
My question is concerning the existing mortgage, what would happen to it? Would it continue to remain in her name subsequent to her death and I continue making pmts. on it, similar to a sub-2 deal?
Would I have to qualify for a new mortgage in my name for the remaining balance? Not sure how this would all work if the house was gifted to me, appreciate any input you may have.
Thanks,
Barry