How do we go about doing this and would I have to pay taxes? She is basically transfering her paid off house under my name and taking he name off the title.
2007-10-22 07:49:38 · 8 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
In CA, you can just go to the County Recorders Office and transfer the title. Costs about $20-$25. Also in CA you can request a tax exemption as a gift from grandparent to grandchild which basically exempts it from being reassessed. I don't know where you live, but google your county's tax assessor's office or call them for more info.
2007-10-22 08:15:00 · answer #1 · answered by ? 6 · 1⤊ 0⤋
Yes ... She can sign the grant deed to transfer the house title to you ... There will be no fee as it will be a gift from her to you ... But there will be a recording fee charged ...
Yes, you will have to pay property taxes as it will be in your name unless your grandmother pays for the property taxes until she passes away then you take over and pay property taxes but then again you do not want the property taxes to become defaulted ... Unless you are living with her already then you should be able to help her with property taxes ... It should NOT be so much money cuz she has lived at the house for so long ...
Or she can write up a living will stating that she is giving the house to you after she passes away ...
Go to a real estate broker and ask for specific details so your grandmother can transfer the title to you smoothly with no hassles and mistakes ...
2007-10-22 08:00:28 · answer #2 · answered by Little J 4 · 0⤊ 0⤋
This can be done quite easily by having your grandmother sign a quit claim deed, deeding the property to you. Her signature on that deed needs to be notarized, and of course your grandmother must be competent and of sound mind. You would then take the deed to the county recorder, pay the recording fees and record it.
As mentioned by others, if you are in California, you would be entitled to keep your grandmothers "proposition 13" exemption, on property taxes, which should save you some money.
Having said all that - you should probably NOT transfer the property from your grandmother to yourself in this manner. This is so for the following reasons:
1. A transfer at this time will be construed as a gift. You will have to pay gift taxes on the value of the home. Gift taxes on a home could be quite expensive.
2. Your "tax basis" in the property will be nothing - since you paid nothing for the property. What this means is that if you rent it out you won't have any depreciation expense to claim on your tax return. Having no depreciation to offset rental income will increase the income tax you pay on any rental income received.
3. If you live in the home you won't be affected by the inability to deduct depreciation - since you have no rental income to offset. However, when you sell the home - this "gift" will come back to haunt you. Lets say you sell the home after 20 years and its worth 1 million dollars at that time. You could wind up paying capital gains tax on the entire 1 million dollars. (Assuming you don't use your one time lifetime exclusion.)
If your grandmother transferrs the property to you by way of a joint tenant deed or will or trust you get a new "basis" in the property AS OF THE DATE OF HER DEATH !!. So if she dies when the property is worth $300,000 that is your "basis" in the property. A sale 20 years later for $1,000,000 would only result in capital gains tax on $700,000 ($1,000,000 less your original $300,000 basis.)
3. A transfer by your grandmother to you - especially where she has not been represented by an attorney - can be challenged by other potential heirs or relatives if they think she was incompetent or subject to undue influence.
I STRONGLY recommend that your grandmother go see an attorney to advise her on the best way to transfer this property to you. It is in both your interest and hers to see that it is done right.
2007-10-22 11:29:23 · answer #3 · answered by Bigguy989898 2 · 0⤊ 0⤋
Go to a Real Estate TITLE agency and request a transfer of TITLE. You're going to have to pay taxes whether you like it or not.
2007-10-22 07:57:47 · answer #4 · answered by CuriousCandy 2 · 0⤊ 1⤋
you both go to a title company to transfer the name and yes you will have to pay property taxes if youre the title holder... unless she wants to continue paying them for you...what a nice grandmother you have!!!!
2007-10-22 07:58:39 · answer #5 · answered by cristelle R 6 · 0⤊ 1⤋
There are several ways to do this, but you need advise from a lawyer or title company to find the best method. My aunt granted her house to my sisters and I through a beneficiary deed. This was pretty easy, but it may not be the best choice in your state.
2007-10-22 09:31:04 · answer #6 · answered by Debdeb 7 · 0⤊ 0⤋
Yes, the taxes would be your responsibility. This way if she requires a nursing home at any time you have the home.
Go to an attorney and pay the taxes.
2007-10-22 07:58:39 · answer #7 · answered by Dawnita R 4 · 0⤊ 1⤋
Consult a real estate/tax attorney. This may not be the best way to go about it.
2007-10-22 08:15:47 · answer #8 · answered by Anonymous · 0⤊ 0⤋