My mother owns a home, in her name on both the deed and mortgage. In this way, if she dies, the house goes into probate, unless she has it included in a living trust. Is it possible to simply ADD me and/or my brother to the deed so that it automatically becomes our property if she dies. I would assume that we would have to get a new mortgage for whatever balance remained unless somehow we could be added to her mortgage without her having to refinance the existing one with one of us as joint. Oh BTW, the property is located in the NYC suburbs in Rockland County NY…
you could have her deed it to you now, but not file it. when/if she dies, have the hearse stop by the courthouse on the way to the funeral and file it.
You may want to check with an attorney where the property is located. I am not so sure that simply adding your name to the deed avoids probate. You may find that the probate court will still be needed to fully transfer your mother’s interest to yourself and other titled owners.
I am sure, however, that adding your name to the title now will give you a capital gains consequence when the property is sold after you inherit your mother’s interest because you lose the full value of the stepped up basis.
adding people to the tile does not accomplish what you want to do; it just divides the interest and when your mother dies you will be co-owners with her estate.
if she places it in a living trust with herself as the trustee and the beneficiary then she can continue to controll the property and its associated equity. She can name you (or whom ever she likes as the successor beneficiary and/or trustee). They can be the same person or different people. The beneficary receives the property and the trustee controlls it disposition. During the whole time, prior and after your mothers passing, the trust holds title and thus it is excluded form the probate of her estate.
contact an atty who specializes in estate plannig and trust. yes, it will cost some money to set it up, but can avoid considerable time and expense int he future.
Note, I have read numerous horror stories over the years of people adding spouse/children, etc to the title only to end up with a giant mess (both title and tax wise) on their given the various possibilities; a living trust is widely recognize as vehcile to accomplish what you seem to what to do.
It sounds like the living trust is the way to go but I was just curious. We already went to seminar about living trusts but have not moved forward yet. Most of her money is in a 401k and an annuity both of which we are named as beneficeries on, so those should simply be handed over to us from what we were told. Also her insurance policy we are on as well. There is only a checking account and the house that really needs to be put into a living trust from what I understand.
if you and your brother are added to the title, and your brother is involved in an auto accident and there is a lawsuit, what do you uthink will happen to your property???
I am pretty sure it will be tied up in the lawsuit and you could lose any of the equity in it.
use the trust, or put it in a corporation and protect the equity with a “friendly lien” this should avoid probate because your mother will no longer own the property.
as for the mortgage, I would not recommend assuming any of your mothers debt. The bank would love to have you added to the loan. I would not assume any responsibility of the loan until your mother passes. at that time, believe me, the bank will have an opportunity to ask you to be added or assume the loan.