My in-laws (soon to be 70 y/o each) want to add 1 of thier 7 children to thier house deed in order for it to stay in the family & not be sold away at thier death. Is it as simple as going downtown & adding them on? Or should they put it in a will what they want (if so, will the property transfer that way)? Are there any tax implications to doing it either way? Is one way better than the other? Why/why not? Is there a different & better way than those options?
Info:
1 mortgage for $100k left (with only the inlaws on it).
in Washington, DC.
been in house for 30 yrs.
will most likely keep house for either principle resident or rental.
the child currently rents, will they have to buy from estate?
2006-12-26 01:27:26 · 3 answers · asked by ricks 5 in Business & Finance ➔ Renting & Real Estate
La Roche: Great insite, thanks. The other 6 are fine with it. Believe it or not, we are not a squabling family like many others. We understand the reason & purpose & dont oppose any actions because all are informed beforehand & respect the decision (but your point is completely understood!). We know that some would sell it right away for the $ & then blow it! Others are not responsible enough to take care of it.
She is married (20yrs) & he is trustworthy. No legal issues that we know, but probably not.
As far as rental, if it comes to that point we would all come to an agreement & would abide (but I would get all that in a contract if needed)
2006-12-26 02:26:10 · update #1
You really should contact a lawyer to handle this for you, and here's why:
1. If the intent is for the property to stay in the family, your inlaws should establish a living trust. In the event of their death, there's no probate; the successor trustee (named by your inlaws in their trust) handles the business of the trust upon their death. The trust agreement can handle a number of issues concerning the dispositon of not only the property, but other assets (bank accounts, etc.)
2. If only one child is added to the property, then only that child will be on title. What will the other six have to say about that?
3. Depending upon the marriage laws where you live, if the property is deeded to the child, and that child is married, the spouse may have a community property interest and be entitled to half of the property.
4. The child who they add to the deed may have other problems that your inlaws don't know about. If he / she has judgments, federal or state income taxes due or is currently in some sort of litigation, those issues attach to the property.
Your inlaws need to think beyond keeping the house in the family. If the property is rented to a non-family member, will the entire family benefit from the rents? Who will be in charge of physical maintenance of the property? Are all the children equally responsible? Without there being anything in writing, the child that is deeded the property could simply sell it and keep all the proceeds.
Your inlaws need to have a discussion with their attorney and tax accountant. I can't tell you what's the best situation for you, but I can definitely tell you what happens when you don't get professional advice. Your inlaws need to be very clear on what their intentions are, then take the steps to insure their intentions are met upon their death.
The one thing I can tell you, with absolute certainty, is that you absolutely should not have any deeds recorded until you've consulted with your attorney and accountant.
You are fortunate that you're family members are all of the same accord. But my main concern is that your in-laws accomplish what they intend, which is keeping the house in the family. You should have them go to an attorney and CPA, then get everything in writing. If everyone gets along as you say, then they should all be cool with this.
The real benefit of getting legal and tax advice is knowing that their wishes are being carried out, and they'll be able to find things that may have been missed or not considered. Otherwise, all their great plans could fall apart. I think a revocable trust would be the way for them to go, but take an attorneys word, not mine. And, to save you time and money, be very clear on what it is you're trying to accomplish so you'll give them a road map to accomplish their goals. I recommend going to MSN.COM and looking under their money section. They have all kinds of information about estate planning...it would be a good starting point. Good luck!
2006-12-26 02:11:22 · answer #1 · answered by Le_Roche 6 · 0⤊ 0⤋
Look into opening an irrevocable family trus, but this will also mean the family won't be able to use the home's equity, you should see a lawyer fo further details
2006-12-26 11:25:48 · answer #2 · answered by mayaprincess68 2 · 0⤊ 0⤋
This is a question for a Lawyer. Sorry, but the folks here are not your best resource for this one.
2006-12-26 01:31:56 · answer #3 · answered by Anonymous · 0⤊ 0⤋