I wish to give my home to my grandaughter for her to take over the payments, what do I have to do?

Question

Here's the situation: I have big payments and I'm planning on moving to a small apartment. My daughter offers to help me with 1/2 of what I'm currently paying and my idea is to give her the house so that she can take over the payments. I want for the property to be under her name. How do we start? who do we have to contact? what forms do we have to fill out? How long will this process take? will it affect my credit? What are the pros and cons of doing this?

Thank you,

:)

Answer 1

You can put your daughter on a title, it will take 30-60 days depends on a county, you have to contact your attorney, so it's done properly.
Or you can refinance your house on both of your names, or only on your daughter name, it will take 20-45 days. Title will cost you around
$100.00 and refinance more expensive.
Good Luck!

Answer 2

Do not just add her to the deed without consulting a tax professional and/or an attorney. If there is equity in the house more than $12k, you will be giving her a gift that will result in needing to file a gift tax form, and possibly in having to pay a gift tax.

You would be best off to actually sell the house to her. If your loan is assumable, she can assume the loan, and you can take back a 2nd for the rest of the equity in the house, if it's more than $12k. You can then forgive part of the mortgage each year. If your loan is not assumable, then she will have to get a mortgage on her own to buy the house.

You REALLY need to consult a professional about transferring the property. If done incorrectly, it can lead to lots of problems in the future, some of them very costly.

Answer 3

I would start (without spending any money) by going to the county clerks office and ask them how you can add someone to the deed. It sounds like you have a mortgage so I am sure the bank would contest the legality of your having transferred the property over to her (if you pass away with an outstanding mortgage). I would also check with the bank about adding her to the deed and as a co-signer for the mortgage or how to transfer both the mortgage and property to her. Both of these sources would be able to tell you the forms you need.

While you may not want to spend any money you may want to still check with a lawyer on the phone - normally the first call is free and you may be able to pick their (call multiple ones with different questions) brains for majority of the information you need.

Answer 4

See a lawyer on this one, to make sure all parties are properly protected. Many people in your situation have legal papers saying that they can live in the house for their lifetime.

You'd need to both change the mortgage and the title. If she can get financing, there shouldn't be a problem.

Answer 5

Your daughter should apply for a mortgage in her name and you can probably sell it to her for the outstanding balance if the loan company will go with it. If your state does homestead exemption for taxes, if she is going to live in it, she will probably need the property in her name to take advantage of the exemption as well as any potential homeowner's insurance discounts (she will need her own policy as an owner, not a tenant) You probably can not quitclaim the home to her with an existing mortgage.

Answer 6

You may want to speak with an attorney first for advice on how to do this. In my state (WA) you could sign a "Quit Claim" deed to your granddaughter. Just call your local title company for guidance on this matter.

Answer 7

You'll have to call your mortgage company to see if your loan is assumable, and very few are these days.

If it isn't, you are free to go with any mortgage company and have her purchase the home in her name.