How Can I Transfer My House to My Child and What are the Risks?

by on January 27, 2012The Realestate.com Team

Thinking of transferring your home to your children? Is this a smart move that can help provide for them and minimize tax liability?

Why are You Transferring Your Home?

how can i transfer my home to my childThe desire to transfer your home to your children to ensure that they are provided for later, or so that the home remains in the family, is completely understandable. Unfortunately, there are many misconceptions that lead parents to make the wrong moves, which may have disastrous consequences for all involved later on. For those asking the question, “How can I transfer my house to my child?” in order to escape legal action and losing their homes or equity, the bottom line is that this is a futile route, akin to jumping out of a plane without a parachute. Any transfers done specifically to hide assets from creditors or a vindictive ex often offer no protection in court.

Sadly, most homeowners wait too long to begin estate planning and rush into the wrong decisions. So what are your options for transferring real estate to your kids and what do you need to watch out for?

How Can I Transfer My House to My Child?

1. Sell Your Home & Gift the Cash

If you are simply worried about providing for your children financially after you are gone, you could simply sell your home and gift them the proceeds. This will enable you to take advantage of tax exclusions for capital gains. This currently applies to the first $250,000 on the sale of your primary residence or $500,000 for married couples – provided you owned and lived in the house two out of the last five years. This may be fine if you don’t want to live in the home anymore, though it can affect your eligibility for receiving government assistance.

According to Grant M. Yochim, an attorney with the Steadman Law Office in Pennsylvania, overlooking the need to fund long-term care, including nursing home care, and the effect that a large transfer of assets to family can have on your eligibility for Medicaid benefits are among the biggest mistakes people make today. Here’s why:

The cost of long-term custodial care – everything from adult day care centers to skilled nursing facilities – can be crippling. A semi-private room in a nursing home now runs over $200 per day, according to the 2012 Genworth Cost of Care study. And assisted living facilities average more than $3,000 per month. That’s enough to overwhelm a retirement pension, and leave nothing for a spouse to live on. What’s more, Medicare has limits as to how much of these costs are covered.

Further, state governments impose strict eligibility requirements on your ability to qualify for Medicaid. Specifics vary by state, but generally, you must have a poverty-level income or less, and have less than $1,700 to $2,000 in total assets, before you can qualify for Medicaid.

It won’t do to transfer your home to meet the asset requirements. Under the terms of the Deficit Reduction Act of 2006, Medicaid officials can look back up to five years and disallow gifts and other asset transfers for the purposes of determining Medicaid eligibility.

Meanwhile, though, states generally exempt some amount of home equity from the eligibility requirement along with a few other basic assets, like a funeral plot, a burial plan, a limited amount of assets for the “community spouse,” or a spouse not requiring long-term care to live on.

By transferring your home, you may be transferring an asset that may be exempt anyway. And if you do it within five years of needing benefits, you may disqualify yourself from receiving Medicaid benefits.

One possible solution: If your state has a “long-term care partnership program,” you could buy a qualifying long-term care policy. These long-term care partnerships allow you to qualify for benefits under Medicaid once your long-term care insurance policy benefits are exhausted, while allowing you to keep assets equal in value to the total benefits paid under your LTC policy. For example, if you have a $400,000 home, you can buy a long-term care policy that provides up to $100,000 in benefits per year for four years. This policy will allow your family to keep the home, if your state has a long-term care partnership program.

2. Gifting Real Estate to Your Children

Clearly selling your home outright to your children can be incredibly expensive and result in many fees and taxes. However, trying to gift your house to your kids by adding them to the title can present a number of challenges too. For a start, any transfer of ownership technically means that transfer taxes are due, even if no cash is changing hands. Gifting the home to your children may trigger the gift tax. Many homeowners mistakenly believe that adding their children on title as joint tenants can help avoid taxes.

However, depending on where you live, there can still be inheritance tax due on the percentage of the property being transferred to your children after you pass on. If you have a mortgage on the property, gifting your home will also technically trigger the “due on sale” clause, bringing your entire loan balance due immediately. Check if your home loan is assumable so that you can avoid this.

3. Let Your Child Inherit the Home

Attorneys and financial planners often do a great job of scaring individuals about the faults in the system that can sometimes wind up in probate issues and result in your estate not being distributed the way you hope. However, it is true that with a solid will and some expert estate planning help one of the best options from a tax perspective is just to allow your child to inherit the property after you die. Some states have a minimal inheritance tax rate for property passed to children, like PA’s 4.5 percent. In other states no estate tax is due unless the inheritance is valued well in the millions of dollars range.

If you go this route, be aware of federal estate tax rules. Generally, your estate will be assessed a tax of 35 percent of everything over 5 million dollars. If one or both spouses are foreign nationals, a lower exemption will apply. If you are married, the surviving spouse receives an unlimited marital exemption; the estate will be taxed upon the death of the second spouse. This could require some planning to ensure that there is enough cash liquidity in the estate to pay the estate tax to avoid having to sell the home to raise the cash. Life insurance is one cost-effective traditional solution to this problem, though there are other options as well, such as the use of trusts. Note that only irrevocable trusts allow those assets to avoid the estate tax. But you also give up control with an irrevocable trust, so there are downsides (see below for more on the use of trusts).

What Dangers do I Face if Transferring My House to My Child Now?

In an interview with William J. Purdy, III of the Law Offices of Simmons & Purdy in California, Bill said “Transferring one’s home to one’s children has to rank right up there with some of the worst ideas ever conceived by modern homo sapiens since the dawn of our species.” Bill conducts a variety of tax and property classes for the firm and a Lincoln Law School. In his 20 years of experience, he says he has seen many horrendous outcomes stemming from parents transferring real estate to their children. He specifically points out issues that can jeopardize the property as well as some outlandish actions by mischievous children.

For a start, once transferred or added to the property, any actions by the children can put the asset at risk. Debts they take on, divorces and auto accidents can all result in judgements against the home. In some cases children encumber the property with mortgages, strip the equity and let it go into default. To their horror the children they transferred to have even evicted some parents from their own homes!

How Can I Safely Transfer My House to My Child?

Still asking, “How can I transfer my house to my child?” Bill Purdy suggests, “Run … don’t walk from any financial planner or attorney who suggest this.” And to “Please, please use a revocable estate planning trust to get the home to the children after both parents are deceased.” A revocable trust will at least allow you to take back control of your home and guarantee a roof over your head in case your cute kid turns into a wild child.

It is never too early to begin estate planning. In fact, having a plan before you even purchase a home in the first place is wise. However, no matter where you are at now, just make sure you interview several real estate and tax professionals before making a decision. Sleeping in tents may seem like a cool idea for a family vacation, or even a protest, but perhaps not so fun if it is because your heirs blew their inheritance early or kicked you out in the street.

{ 85 comments… read them below or add one }

Jackie October 23, 2014 at 2:04 am

Hi my father is currently living in his own apartment near by, but needs to be placed in assisted living faculty per the recommendation from his doctor. Unfortuniy he does not qualify for Medicaid because he owns a piece of property in South Carolina worth $15k. What is the minimal cost he could legally sell me his property so that he could be free of it to be eligible for Medicaid? Note I’m in the military and have limited funds and my dad is retired with $1k in the bank. Advice would be GREATLY appreciated!

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elena October 22, 2014 at 2:42 pm

we have 6 unit building in a family trust, we would like to give it to our
2 children . can this be done, how much taxes do we pay or not pay…thank you

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DT October 8, 2014 at 12:34 pm

This article seems to be a bit biased from a parent that got burned from their child that they didn’t raise properly.

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Martha Miller October 5, 2014 at 10:16 am

My mother-in-law had alzheimer’s and passed away without putting her son (my husband) on anything. The house is paid for, as is her van, how do we get the house in our name. We have lived here since 2009. We moved up to take care of her. She has 2 children, her daughter lives in another city and owns her own home so doesn’t want or need this one.

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Louis Hill September 29, 2014 at 10:34 am

My mother had a stroke and had to be placed in a nursing home. She’s been there going on 2 years because she’s not getting any therapy for her stroke due to her changing her insurance. She’s probably not coming home ever again. My question is I’m her only child and had to take over her mortgage payments as I had to have her Social Security checks redirected to the Nursing Facility for her care. She still has a mortgage on her house. I asked the mortgage company if I would be able to continue to live in the house and make the payments if something unfortunate (she dies) would happen to her. They wouldn’t give me a definite answer. Only saying that I would have to bring them a death certificate before I would know. I’ve made the monthly payments on time from the time I started paying it (the mortgage company). Does anybody know what I may be up against please e-mail me. I am very concerned!

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Mickey Simmons September 28, 2014 at 5:06 pm

hello. my mother in law passed away in 2007. my father in law passed away last week. they owned a home here in Texas, which has been paid for for some time. what happens when neither one of the people on the title is alive and the house needs to be sold? the lady next door to the home wants to buy it so there is no realtor involved. we have no idea what to do. there is a will which mandates that the house is to be sold and proceeds from the sale are to be divided between the three children. any direction at all would be greatly appreciate.

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pATTY October 11, 2014 at 5:56 pm

Go to surrogacy court or court house in the municipality of the county, declare your the children of all property.
Them after that’s resolved you can figure out the assets such as home and other items.

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Cindy A September 8, 2014 at 4:19 pm

My mother died in 2003 & owned her home free & clear. It was her wish that her 2nd husband, our stepfather, continue to reside in the home until his death before selling the home, which we 5 children agreed to honor. In 2012, my son offered to take out a loan in his name to purchase a home for me & I did a quit claim deed to him for my 1/5 interest of any money received from the sale of my Mom’s. My stepfather passed away last year & we put the home on the market. After receiving an accepted offer, the buyers attorney ran a title search & we learned that in 1999, unbeknownst to any of us, my mother had gifted the home entirely to me & because of the quit claim deed between my son & I, my son is now shown on the title as the sole owner of the property. The proceeds from the sale will still be divided between the 5 siblings, but what type of tax implications might my son have. I essentially gifted him the entire property…not my 1/5 interest. I was also told I should have filed a form 709 for the quit claim deed gift, but I am disabled & don’t receive enough to be required to file income tax for several years, so I’m concerned about that. Any advice would be most appreciated.

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Cindy A September 8, 2014 at 3:56 pm

My mother died in 2003 & owned her home free & clear. It was her wish that her 2nd husband, our stepfather, continue to reside in the home until his death before selling the home, which we 5 children agreed to honor. In 2012, my son offered to take out a loan in his name to purchase a home for me & I did a quit claim deed to him for my 1/5 interest of any money received from the sale of my Mom’s. My stepfather passed away & we put the home on the market. After receiving an accepted offer, the buyers attorneyt ran a title search & we learned that in 1999, my mother had gifted the home entirely to me in 2013 has now passed away & when a

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Cathy W. September 4, 2014 at 11:18 am

My son is still living with me and I want to make my will now. I am still paying the mortgage on this condo and plan to stay there until I die. Do I have to transfer the mortgage to him or will it automatically transfer to him since he is the beneficiary? Thank you for your time.

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Mike Hall August 29, 2014 at 10:21 am

My father has dementia but Kaiser has said, in writing, that he is still capable of handling his financial and medical affairs. My mother has recently died and my father wants to change the trust. He wants to leave his house to his natural born son and not my mother’s oldest daughter. My older brother and myself, both step children, are fine with this. My sister is not, or course, and has made it clear she would sue, when the time comes, in order to inherit the house. We are having difficulty finding an attorney to help my dad do what he wants because of his dementia diagnosis. Can he give the house to my brother now? Thanks.

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pATTY October 11, 2014 at 6:00 pm

sure add brother to deed

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Kathy Bates August 25, 2014 at 12:16 pm

My 2013 car is completely paid for and I added a TOD (transfer on death) to the title so my son could have the car if I died. So if I own my home free and clear can I add a TOD to the deed to transfer it to my son upon death?

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Brian August 26, 2014 at 7:55 pm

Why not a non-statutory/ private trust? Transfer the land to a trust of your construction. You can be trustee and one of the beneficiaries, or you can name another as your trustee. If any one of the trustees dies, the remaining beneficiaries automatically share the beneficial ownership left behind, with nothing more tot do.

Best of luck!

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Ann August 22, 2014 at 11:52 pm

My mother in law brought our house as gift for my husband she has clearly stated this even in front of people we brought the home from. However she left it in her name but we pay the insurance and do all up keep etc. my husband has cancer he wants the deed transferred so that mother can’t through her me and our children out if he doesn’t make it . Can we sue her at all ? I live Toledo , Ohio

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PATTY October 11, 2014 at 6:04 pm

we is on the deed owns the home

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Beve August 12, 2014 at 3:47 pm

In 2010, we gave our daughter and son in law a down payment to purchase a home for us. It is in their names still. We are still living in this home in Arizona. We are now ready to sell the home and move back to California. We are all not sure how to do this. There will be capital gains involved. We don’t want them responsible for gains. What is the best way to handle the transaction? My family thinks maybe Quick Claim it to us, or what can we do? We appreciate if you can answer this, or quide us to who can help us. Thank you for you time.

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jab August 4, 2014 at 11:19 am

When your mother signs her home over to you and your husband . if she
continues to pay for siding and windows. When she passes away can the company sue you for the money?

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ryan July 30, 2014 at 10:44 am

My uncle wants to transfer the home to me (morgage around 215K and still loan 160K). He had the deed of the home already. Can he transfer the home to me? What does he need to bring along with? Can I do the transfer by myself instead of him? How much tax I (or he) need to pay?

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Aimee July 27, 2014 at 8:43 pm

Hi. My husband and I and 3 kids live in my moms 2 family. She lives in the smaller apartment and would like to transfer ownership to us. We would take over utilities and taxes obviously as well as responsibility for all maintenance. My father is deceased and my 2 siblings don’t assist with upkeep or maintenance – my husband does it all as we live there, or she hires someone. she’d pay a small rent and there would be a clause that she lives there until she passes away. Would my mom be safe this way in the event she falls seriously ill and needy to go into a nursing home. Living with us she’d not need assisted living unless something goes wrong.

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Lauren July 29, 2014 at 4:52 pm

It would depend on where you live. In PA medical assistance will look back 3-5 years for any assets. If it shows that she transferred assets out of her name, she may disqualify herself from medicaid for a “penalty period” or have to privately pay for services. The going rate at the facility i work for is $426 a day. It’s hard to guess if someone will need long term care in 3-5 years.

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Deb Patterson July 24, 2014 at 10:30 am

My Mother and my Husband and I are jointly on the title to our house. She just turned 80 and wants have her name taken off of the title [house is paid off].what is the best way to go about it. and is it wise? thanks

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BECKY BOICE July 10, 2014 at 3:13 pm

I HAVE AN UNCLE THAT IS TERMINALLY ILL. HE IS WANTING TO GIFT HIS HOUSE TO HIS KIDS. THEY LIVE IN KENTUCKY. HE HAS ONE SON THAT HAS A DURABLE POWER OF ATTORNEY. HE IS UNABLE TO SIGN BUT IS STILL COHERENT. JUST WANTING TO KNOW THE BEST WAY TO GO ABOUT THIS WITHOUT COSTING THE KIDS. HE WILL POSSIBLY BE GOING TO A LIVING FACILITY. WILL THIS BE A PROBLEM.

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LeAnn July 9, 2014 at 1:44 am

If a home is in foreclosure can you sell the home for a $ 1000 to a family member to avoid the home being foreclosed on?

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Fannie Spates July 3, 2014 at 10:46 pm

My Elderly friend,had a son get out of prison after 25 years served he forced his mother to do a quick deed to him, he died in January of 2014 , he have had this
duagther surface, there was no will,how can she get it back in her name.

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linda June 20, 2014 at 3:27 pm

My Parents have had a rental for one year and we rent from them at market value. Are there any tax implications if we buy the home from them for only the loan balance of $135,000? They paid $177,500. They also have a home of their own free and clear.

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jeanne June 10, 2014 at 7:43 am

My mother n law has a lot of land that is paid off. she wants to give it to me & my husband. what does she need to do?

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Danielle June 9, 2014 at 6:19 am

My father in law has 7 acres that he inherited, and it is all tied into his mortgage. Can he will it to my husband if he hasn’t paid it off, by the time he passes away?

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brian June 17, 2014 at 8:22 am

If he inherited land what is it doing in a mortgage?????

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DANNY May 27, 2014 at 11:20 am

MY MOTHER DID A QUIT CLAIM DEED WITH ME ABOUT 5 YEARS AGO AS OF MAY 27TH 2014. THE HOME IS PAID FOR IN FULL AND I AM WANTING TO SELL TO BUILD A NEW HOME. MY QUESTION IS: WHAT DO I HAVE TO DO TO SELL THE HOME SINCE THE TITLE STILL HAS MY MOTHERS NAME ON IT ? AND DO I STILL QUALIFY FOR EXCLUDING THE GAIN ? MY HOME IS VALUED AT $154k FAIR MARKET VALUE
THANKS FOR ANY HELP YOU COULD PROVIDE
DANNY

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Gary June 4, 2014 at 2:20 pm

Not totally understanding the situation, but I would assume the best bet would be to remove your name from the title first. And then let your mom sell the house and gift you the money to build the new house. This should be the most efficient way to sell without triggering a tax event.

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Gail Carroll May 20, 2014 at 8:31 pm

Hello, my parents are in their mid 80′s and would like to make sure that I get the family home. My mom is a candidate for nursing home care and he doesn’t want the home to have to finance her nursing care should she end up in a home. He is in good health and would live in the home until he passes or possibly needs nursing care. Would gifting the home to me look after this? And, if so what is the procedure for doing this. They live in Newfoundland, Canada. Please advise.

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Gail Carroll May 20, 2014 at 8:25 pm

Hello:

My parents are in their mid 80′s and would like to make sure I get thier home. There is a distinct possibility that my mom may end up in a nursing home and my dad would like the home to be left in the family. Is there a way of doing this to ensure that the government doesn’t get the value of the home if my dad ends up in a nursing home as well. They live in Newfoundland, Canada. My dad would like to live in the home until he either passes on or has to live in a nursing home. Can he gift the home to me? And if so, what is the procedure for doing this? Thank you for your help.

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Ms. Powell May 17, 2014 at 8:28 pm

my grandmother gave my uncle POA and put the deeds to her land in his name. She went to a rest home and two weeks later he died. She is still living in the rest home. Would the land go back to my grandmother or will my uncle’s step grandson get everything. My uncle left him everything. My grandmother now does not know what to do. She is 98 yrs. old and never thought she would out live her sons, both are died. The next of kin would be me her granddaughter or her niece. My question is will the land go back to my grandmother or will my uncle’s step grandson get it all because my uncle willed everything to him. concerned for my grandmother.

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Linda June 12, 2014 at 2:58 pm

If she deeded the land to him it is now under his estate.

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Al April 14, 2014 at 7:51 pm

My mother has passed away. Her name together with my stepfather’s name is on the mortgage. We came to live with them during her last 2 years. He now wants to move and would like to sell us the house for no profit. what is the best way to go about it? We only qualify for the amount that is still owed on the house. What is the least costly way to go about this? Secondly is there any benefit to dealing with a separate mortgage lender or should we go to his current mortgage company?

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Melissa M March 25, 2014 at 11:09 am

I have been living in what was my grandparents home for over 5 years. It is in my mother’s name. I have paid all repairs, taxes, insurance and utilities during this time. What would be the best way for her to put the property in my name? It has been in my mother’s name for over ten years and she has never lived in the house. I moved in to help my grandmother while she was dying.

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zina March 11, 2014 at 12:32 pm

Hi, Can you tell me the BEST way for Mom to sell her house to myself. It is two famaly her primery residens and paid off completely, but she depreciate it every year, because 2 famaly .
To avoid tax’s Is there a better way to do this ? Sale, gift…..?
We live in New York
Zina

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mark conti March 6, 2014 at 1:25 am

I bought a house 2 yrs ago, my son has lived in it since then and now wants to buy it. I have claimed it as rental property while he has lived there. what is the best way to do this to avoid as much tax as possible ?

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Linda Brown March 5, 2014 at 3:29 am

My mother-in-law placed her deed in her son’s name who was living with her. Once he died, she put the deed in her other son’s name (my husband). It’s been in his name for 15 years, but she only lied in it. Now she died, and the house has been sold. Now the broker said my husband needs to pay an inheritance tax which could be thousands. Why should he be responsible for the lump sum of the accrued taxes when no one told him about this earlier? Is this legal?

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Beth kirby February 4, 2014 at 12:35 pm

Own a condo outright in a adult community 55 and older. Been here 2 years. Want to put the condo in my daughter name. I’ve heard condos are done differently, what’s the best way to handle this, in case something happens and I end up in a nursing home?

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marilyn Zanca March 24, 2014 at 6:25 am

I already put my ownership of my condo in my 2 daughters names .Susie said I should not- I thought it would protect me from loosing my home.

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Pat January 30, 2014 at 8:17 pm

I am terminally ill and my Blue Cross requires a $6000.00 deductible. After three stays in the hospital, bills exceed $12,000 for 2013 and 2014, so I am responsible for paying $12,000. Can I give my home to my daughter by creating a Quit Claim Deed. Also, I was planning on giving her my 2012 Escape. This does not sound legal to give away assets to avoid paying bills. I plan on paying a portion of my medical costs but I am not in a position to pay the entire amount. I may try to sell my 2012 Escape to come up with the cash. Can someone with experience give me some advise. Thank you.

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Linda June 12, 2014 at 3:00 pm

What state do you live in?

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Lauren July 29, 2014 at 4:58 pm

Have you spoken with the hospital? Most facilities will take something rather than nothing. Try speaking with their financial people about a payment plan.

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Virna January 26, 2014 at 9:44 am

Hi, I currently own a second home which was purchased by my ex-husband and myself in 2003 for my parents. I kept the home as part of our divorce agreement. My parents paid the mortgage, but as I needed cash as a result of the divorce, I got a home equity line of credit on it. Is it possible to transfer the title deed to my parents so they can take the homestead exemption on it? They live in it, they pay taxes, insurance, etc. Please help, I don’t know how to legally do this and is it possible? Should I consult a real estate lawyer to file all the necessary paperwork? Thank you so much!

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Gene Aleman January 12, 2014 at 4:14 pm

In North Carolina, is it smart to have my aging mother put her house in my name and my sister’s name now….before she gets so old that she needs to go to a nursing home? We are trying to avoid using the value of her house to pay for her nursing care and we think that if we put the house in my name and my sister’s name, then any Medacaid nursing home costs woukd be covered by the government instead of funds from having to sell my Mom’s house.

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Tony January 19, 2014 at 2:50 pm

Hi Gene, I’m in a similar situation. I’m guessing that, like me, you’ve discovered that quickly transferring property to avoid Medicaid taking it all is next to impossible. I understand why they try to recover the costs, but for us people who don’t have much, it’s a terrible loss. Medicaid looks back 5 years on the transfer of property, and without estate planning well in advance of the transfer, you’re probably going to have to consult a local attorney. The only things I’ve found that are close, are Title transfers like Quit claim deeds(heavy taxes, and possible fraud for voiding medicaid costs.), and Irrevocable Trusts(5 year look-back) Good luck.

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Maryann September 26, 2014 at 8:58 pm

Hi Gene…I am in a situation similar, I’ve lived with my elderly mom for the past 5 and a half years, as her sole caregiver. She is now at the stage of her life (88 years old) where I can no longer provide her the care she needs and is in the process of entering a nursing home. However, her home has a mortgage on it still, and I am still living in it. After researching and researching, and speaking to her case worker at the rehab nursing facility she is presently at, after falling, I found that there are special circumstances that allow your parent to transfer the home to a son or daughter who has resided in the home for at least 2 years prior to their going to a nursing home, who provided care that essentially kept them out of a nursing home for that time. There are no penalties from Medicaid from the way I understand and read it under such a transfer. Hope this helps. Will post again when I find out my fate, as unfortunately, I am not my mom’s P.O.A. so I must wait until my brother begins the medicaid paperwork and my mom to instruct him as to what her wishes are regarding the house and my living in my car or remaining in the house. Hope all has worked out (just realized you posted in January and here we are about to welcome October in) for you. I’ll post anyway for anyone now going through something similar or anyone who knows more about this Medicaid exemption. Thanks all and best of luck to you. Not sure the link is allowed or will show but I’m posting it so that everyone who needs/wants can read about the exemption.
http://www.nolo.com/legal-encyclopedia/how-can-i-safely-transfer-my-assets-get-medicaid-pay-long-term-care.html

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Nick January 12, 2014 at 11:32 am

Hi,

Partner Died and severed the tenancy and gave her half to our children. Grandparents who care for the children want to a) buy me out or B) Put ther property in trust. If I do this can I place a clause in it that the grandparents cannot touch it. I’d like it to go to the children only, but I know they would like their hands on it.

Can this be done?

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Ajay S December 25, 2013 at 2:35 am

Dear Sir/Madam,

I have purchase flat to my Dad to pay proper stamp duty and Registration but now Society member want 1,00,000/- Rs for Transfer Fess.

Can i pay this amount to Society member because this is Blood relation Transfer.

Please reply ASAP.

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Kevin Momberg November 16, 2013 at 9:37 pm

Me and my wife are on the verge of divorce, can we transfer our bondfree house to our 14 year old Son we both agree with this and there is no hidden debt or any otherproblems with the house.
Please let me know and also if we can how do we go about it. One of us will stay him and take charge of the annual rates and any other costs.
Regards.
Kevin.

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Mollie walker October 1, 2013 at 8:27 pm

My dad wants to give me an acre of land. What would be the best route?

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marge alden April 10, 2014 at 5:41 am

marge alden–may have an opertunity to do this in the future??

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Jan October 1, 2013 at 7:19 pm

My mom transferred her home to me in 2000, she had to go into an Assisted Living Community last September. She had a clause put on the deed, that she could live in that house until she died. I put the house up for sale and closed on January 31st of this year. She died a couple of weeks ago. Her will states that the house was to be divided between my sister my brother and myself. She never filed a gift tax form, what kind of taxes am I looking at here. I would appreciate any I put. Thanks. I never lived in that house during the time the deed was in my name. She paid all taxes, utilities and repairs.

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Theresa Almendarez September 24, 2013 at 7:44 am

Hello I have a question. My parent’s took out a reverse mortgage on their home. My father passed away a year 1/2 ago. My mother who is disabled from a stroke is living in the home. She has fallen twice and now can not live by herself anymore. My question is (I am her daughter) can I move in to care for her?

2nd Question: What would we have to do to buy back her house if she took out a reverse mortgage? Are there any program’s to help buy back her house?

Thank You,
Theresa Almendarez

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Gary September 14, 2013 at 4:18 pm

Hi, Can you tell me the BEST way for Mom to sell her house to myself. It is paid off completely and she wants a certain amount of money for her home. Do we not tell the Lawyer the right price ? To avoid tax’s Is there a better way to do this ? All she wants is the money and All I want is the home ? Thanks, Gary

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Susan November 6, 2013 at 12:11 pm

I am in the same situation with a house that i would like to purchase from my father. Have you been able to find any answers to your post above?
Any information would be greatly appreciated.

Thank you,
Susan

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Lori Houk September 8, 2013 at 9:05 pm

I have a 2ed home a rental that I no longer want to rent out My son is wanting to move out of My Home he is soon to be 21 and I am 57 .I don’t want to mess with the 2ed home and have thought about Just Quick deeding it to him he has always had a fond ness for the home as it is the one he grew up in. what if any type of problems would this Couse for me or him .

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Lori Houk September 8, 2013 at 9:07 pm

Also I will say I Owen the House Free and Clear

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ilene stein August 19, 2013 at 3:22 pm

My mother will be moving into an independent living facility She has to give the facility 166,000 90% refundable at the time of death 9r she leaves the apartment. In order to pay for thi9s she has to sell her house. Her gouse can be sold for $250,000 and she paid $238,000. 6 years ago.she would like to gift us the balance of the home. At the time of her death the balance of the $166,000 goes too her heirs. Is this considered a gift of a home. What is the most legal and least ttax liability for our family

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gpj July 31, 2013 at 4:48 am

My parents both 85 want to give their house to my daughter, 30. What steps are required to do this. Are there any negative consequences? We live in Chicago, IL.

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terry July 30, 2013 at 9:50 am

me and my wife was letting my daughter buy our house to help them out and to help us out, after they were there a while they stoped paying us, what can i do to get it back,

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Paula M. Youmell July 28, 2013 at 5:59 pm

I want to transfer my home to my minor aged children, 11 & 14. Can I do this in NYS?

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Harold Wandle July 17, 2013 at 10:24 am

I want to transfer my home to my daughter and son on law. Iwant to move out and live a life of my own even though I am 85 years old. I have letter of credit and a morgage on the house. Do they have to pay the letter of credit and mortgage. Will it cost me a lot of money for the transfer. Thank you for your help

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Kim July 4, 2013 at 7:44 pm

My mom wants to transfer the deed to a house she owns over to me. She previously rented the house but now it is vacant and I will be moving in shortly. She is 92, I am 58. She lives in her own home. It sounds like it would be simpler to inherit the house instead of deeding it over but I think she just wants one less thing to worry about. The value of the home is around 65K. Can you guide me in the right direction? We live in NC if that makes any difference.

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Teresa June 29, 2013 at 7:00 pm

My husband and I have been living in one of my dads homes for the last 8 years and now want to purchase it from him. We keep hearing that we need to consider him adding my name to the title and then 6 months later removing his name. We would then do a refi to pay him. The home is currently paid for and down payments and closing costs really add up. This is in an effort to avoid all of these fees since this is between parent and child. We have been his only tenents and have maintained all responsibility of taxes, insurance, repairs and remodeled two bathrooms while living here. Is that the way we should go?

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Dave May 29, 2013 at 8:12 am

My wife and I have purchased a new primary residence in PA. We would like to find a way to “rent” our old house which is payed off to our daughter. She has a child and we want to help her and her daughter. The issue is we do not want to seel or gift the house to her as if something happens to her we do not want the property falling to the grandchild which would potentially be in the custody of the ex. We are looking for suggestions which will not kill us at tax time.
Thank you

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christine June 3, 2013 at 6:17 am

Could you allow them now to live there but place a “clause” in your “will” that the house cannot be sold to your grandchild until they reach a certain age (like 25) and only to your grandchild if you feel hesitant that the ex will come back. That is such a hard decision to make.
I’m also in a bad situation with my parents where my brother has always sponged from my parents. Now my parents want to “gift” their house (moving to their other house down south) to us but my brother who states will pay half has not contacted me about but has taken asset from the house already! But the problem is …why would the house still remain in my parents name afterwards? They all claim it’s because of his marriage? Don’t have good feeling..def. need an estate attorney!

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Kathie May 13, 2013 at 12:01 pm

I am 61 and retired. My 32 yr old daughter wants to build an addition to my house and move in. I owe 30,000 on my mortgage with ;my house appraised at 200,000. the addition will cost 150,000. what is the best way to get the equity from my home for the renovations. my daughter works and has a income double to mine.

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Lu November 20, 2013 at 9:28 am

We owned our house for about 6 years . my Mom & Dad wanted to put addition on our house. They were both of good health but unfortunately, Mom mom passed in oct 2011 my Dad a year later. My sister has kept the inheritance money and will not close the will… She has cut all ties with us because she wants a share of what they paid for addition… The house was not in the will. Can she get any of our house if she tries to take us to court or sue us?? My parents paid no rent .. Or bills while here except what the additional taxes were for the addition. PLEASE. hELP!

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AV May 8, 2013 at 11:31 am

We lost our father in December, and my mom has not been able to handle the mortgage. We’ve been paying both her mortgage and ours since December so she can stay in her home, and already had bills transferred to us. Her mortgage is twice the amount of ours, and things have been very tight. She wants to remove her name from the property. How do we do a deed transfer without facing even more money spent? Is there a safe, easy way that won’t trigger bank wanting full payment?

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jackie April 26, 2013 at 7:42 am

I am single and live in my parents house which is paid for, they live in a rented council bungalow, I am the only child and my dad wants to sign the house over to me as security for myself tho i don’t work but I claim a bit of income support and carers allowance will this effect my benefits?

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Jessica April 22, 2013 at 12:13 am

Ok my grandparent have a home that they paid off but as of today owe 25,000 on taxes…..but right now it’s just my grandma left and my aunt is in charge of everything and close to loosing the house. Is there anyway I can make arrangements with the IRS on making payments and somehow owning the home. My aunt is a mean lady and would never let me have the house so I wanted info on how that would work or if it is possible before they end up loosing a great home. It just been sitting there for YEARS

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Roy Freake April 19, 2013 at 12:47 pm

Hi:
I live in Eastern Canada….I am in the process of buying a SECOND residential property (3 bedroom home) as an income property….
During the deed transfer and purchase of this house, I want to record ownership in the name of my 11 year old daughter…May I have your advice on doing this…?

ADDITIONALLY….Please give me your advice on transferring my existing income property (house) over to my 11 year old daughter’s name….?

One or the other..?

The purpose in doing one or two of these actions, is to ensure that my daughter has a nest egg for when she gets older…

Many Thanks,

Roy…

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laurie April 3, 2013 at 5:53 am

We are facing bankruptcy. Haven’t filed or anything yet but we own a business and screwed up by doing it is a sole proprietorship and our home and business is comingled and now we are facing bankruptcy. What can I do about protecting our home.

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Marion Wyborney February 19, 2013 at 12:57 am

My daughter bought my house, do I pay her rent to live in it ?

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Kolakbg February 22, 2013 at 8:34 am

Your daughter should determine whether she want to provide you a free residence or charge you minimum amount to cover expenses or charge you full market rate to make profit.

On the other hand, are you your daughter’s dependent? If you are, you can expect her to provide for you, including free housing.

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Inna January 17, 2013 at 1:28 pm

I wonder if it is good an idea to sell presently my condo to my daughter ( I have a son who is not an a financial position to buy it ) and rent it from her. What kind charges and taxes I am going to face it? I live in BC Canada. Please reply.
With appreciation,
Inna.

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Dan November 30, 2012 at 10:28 am

If I was left a house from someone’s estate and they had debt that was owed at the time of death (Reverse mortgage) on the property. The house was since foreclosed but yet the estate itself has not been settled. I am not in a financial situation to pay out what the deceased owed at the time of death. I am also disabled. Here is catch; I can’t fork over my other interest in the property for I will loose my Medicaid which I need. My mother has secured a loan in the amount needed to pay off the deceased reverse loan amount. Since the property was legally under foreclosure at the time of my mother paying the debt. Will I still have to pay inheritance on the property since it was foreclosed on and I technically legally lost it via the foreclosure in order to settle the estate even though I didn’t gain anything via the foreclosure? Also would this in any way affect my medicad? I believe that since my mother purchased the property in her name and out of foreclosure she would be able to title the house in her name and only have the pay state taxes on the amount she purchased the property for. Very complicated situation and I’m in need of help with it ASAP. Thanks!!

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RealEstate.com Team November 30, 2012 at 1:43 pm

Dan – It sounds like you’re in a tough situation. Unfortunately, we’re not qualified to offer legal advice. We recommend consulting a lawyer to get help. Best of luck to you.

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Dan November 30, 2012 at 4:15 pm

I was not asking for legal advise I just wanted to know if I had any options. Thanks for your responce.

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paul martin April 21, 2012 at 12:02 pm

My Mother owns a house ( approx. worth $105,000) and currently has a reverse mortgage on it for the last 2 years. On her passing……correct me if I am wrong…..When the house is sold after my Mom’s passing the family heirs would receive whats left after the reverse mortgage debt was paid off .

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Floralba June 16, 2012 at 2:30 am

Well more than likely you wont need reaglur school classes, real estate/ loan processing and so forth have their own classes. mostly done with a bigger realtor establishment in your area, check with them and find out how many hours you need to take and how much they cost.

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Susie COlho March 24, 2012 at 9:00 pm

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