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Transferring parents' house to children

Started 1311089882.617 in Among Friends | Last reply 1311437989.367 by Dagna

Hi everyone. My parents are both 73, reasonably ok health, they want to transfer the deed to their house to my brother and me. Has anyone ever done this before? Good idea? We live in Pennsylvania.

Thanks for any input.

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KZoo1311090049.381942 PostsRegistered 1/26/2010

I would think it would be a good idea, no inheritence taxes or probate, but consult a lawyer.

-Donna

when all is said and done........will you have said more than done?

Marp1311096808.41313480 PostsRegistered 10/6/2004Western NC

Kimmy,

With our former home as my mother aged she simply added my name to the deed so the property was in our joint names with right of survivorship and would have passed to me. That is how we have our current home too. No taxes and no probate necessary.

Can't answer about a straight transfer but I think there might be tax liabilities doing it that way.

Last edited on 7/19/2011

Last edited on 7/19/2011

A dog chasing his tail eventually bites himself.

marmot241311098956.04406 PostsRegistered 10/7/2009 Steeler country

Hi Kimmy, We live in Pgh. too, and just this last Jan. we added our daughter's name to a house we bought for her, but was in DH and my name. We never lived there, just her and her husband.

If you put the house in just your name and you do not live in the residence, you cannot use the Homeowners Exemption on your city taxes. However if you just add your name to the deed, you can still use the exemption. As long as someone on the deed lives there, it can be used.

Also, we saved alot on our homeowner's insurance. When it was just DH and me on the deed, we had to insure it as "rented to others". Once we added DD name, now she can get a "homeowner's policy", much cheaper and covers alot more on the policy.

Good luck with whatever you do and BEAT EM BUCS !!

My kitties have a prized home with canned food & lots of love!

WSfan1311108532.252117 PostsRegistered 10/6/2004

My aunt and uncle did this, transferred the deed of their house to their children (my cousins). Then they found out that if either of my cousins were to be sued for any reason, they could lose their house, so they changed it back. My suggestion would be to talk to a lawyer first.

Gooday1311108689.74310212 PostsRegistered 1/20/2008

Papers have to be filed with the county you live in. We had a lawyer do this when my mom had Alzheimer's. We had her name removed and then my name added along with my dad. The home was put in a TRUST.

game-on1311110500.3173464 PostsRegistered 6/9/2007

Kimmy...ever heard of a quit claim deed? Your parents can quit claim the home to you and your brother signing it in front of a notary public (any bank has one) and then the deed can be kept in a safety deposit box and registered at the time of their death. This answers many of the legal questions...

happy2writ­e4u1311111182.2874600 PostsRegistered 10/21/2007

Yes, as many have said this can be done quite easily. We know many people who do this. Just one point, all that has done this, that I am aware of must have complete trust with their children, as the names on the deed will be in the children's names but the parents still own the home.

Also as others pointed out, the names can be added to a deed. Very easy to do, which ever way you choose. A lawyer can have this drawn up in no time.

Kindness and Peace are Priceless!
RIP Joan & Robin
The one ,only, original happy is back.

Epicurean1311121261.861501 PostsRegistered 8/19/2005

Don't know about Penn. laws. But, my Mother In Law who had 4 children had the house put in their names with a right to life for her. Meaning she could live in it as long as she wanted, and she was responsible for upkeep and taxes etc. So, when she passed, they just put the house up for sale and split the profit. No probate necessary.

ROMARY1311122522.39716095 PostsRegistered 4/28/2010

Always consult a local attorney. Also a qualified tax accountant. As I recall, many years ago, an elderly acquaintance added her nephew to her house, and there were significant gift and/or other (maybe property?) taxes that accumulated for approx. 6 years. She had to obtain an attorney to sort out all of her financial situation.

Last edited on 7/25/2011

Last edited on 7/25/2011

Yellow Rose

Epicurean1311125978.41501 PostsRegistered 8/19/2005

Oh,your right. Luclkily for us my BIL is a IRS auditor.....

FreddieP1311167604.051395 PostsRegistered 4/17/2008

That's exactly what my mother did Epicurean. But in our state you have to have the legal paperwork in place five years prior to a parent's death or entry into a nursing home.

kitkom1311169561.0475646 PostsRegistered 10/6/2004
On 7/19/2011 TeamJill said:

I would think it would be a good idea, no inheritence taxes or probate, but consult a lawyer.

There is NO inheritance tax except if there's an IRA acct. I know, I'm going through the process right now of distributing all of my dads assets. Thank GOODNESS he had a trust. It's making everything effortless.

"Happiness is Lake Charlevoix!"

Jeanhelen571311204288.2732728 PostsRegistered 11/1/2005

Personally--my FIL did that..he put his home in his 3 kid's names. He never said why. He then sent us the bill for the taxes and decided how much he would "chip in" to help us out with "our house" (that he continued to live in) It was a burden to come up with extra money for taxes at the time with our own 3 kids at home..nobody complained I guess because they were essentially given the house??!!?? But we, of course, didn't do anything with it till after their parents passed on--to this day I think that was "messed up"...I cannot imagine putting my home in my kid's names, continuing to live in it, but then telling them it's their house so they have to come up with the $4000 in taxes each year (without arranging or asking before I do it!)

Eeen1311235757.262532 PostsRegistered 10/7/2009

Bump

mariakippen1311397322.17738 PostsRegistered 12/25/2006

I live in California and the rules here are that you can transfer the home from a parent to a child. If the home is paid for there is a form that transfer the property from their name to the childrens name and they property taxes stay the say. We called it Proposition 13. So, if you purchased the property in 1970's or so, you can do that. The Form is called "A Change In Ownership Statement". Within that form Part 1, section C it states the change is between a parent and a child. Of course you need to fill out the rest. When you do this the property taxes stay the same. We handle Probate and this is the form that we use. I have also used this form with my mother years before she died. I hope that this helps. You can e-mail me at mklegal@cox.net if you have any other questions.

Dagna1311437989.3514011 PostsRegistered 2/10/2006
On 7/22/2011 mariakippen said:

I live in California and the rules here are that you can transfer the home from a parent to a child. If the home is paid for there is a form that transfer the property from their name to the childrens name and they property taxes stay the say. We called it Proposition 13. So, if you purchased the property in 1970's or so, you can do that. The Form is called "A Change In Ownership Statement". Within that form Part 1, section C it states the change is between a parent and a child. Of course you need to fill out the rest. When you do this the property taxes stay the same. We handle Probate and this is the form that we use. I have also used this form with my mother years before she died. I hope that this helps. You can -mail me at mklegal@cox.net if you have any other questions.

That has always seemed wrong to me. I thought property taxes funded necessary services - and we all know that state and municipal governments are going broke. It's bad enough to give homeowners the continuing benefit of no raise in taxes, but then when they "transfer" the property, the benefit should not continue in my view.



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