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If my aunt adds her grandsons name to the title of her home will that avert taxes, and probate when she passes away.

Detroit, MI |

My uncle just died. They own the home mortgage free. He is 24

Attorney Answers 4

Posted

What taxes are you trying to avoid? Gifting does not avoid taxes, and can actually accelerate transfer taxes and possibly increase property assessments. Transferring to joint tenancy would achieve the result of avoiding probate, but its really not the greatest estate planning tool because circumstances could change for grandma or grandson could develop bad habits that grandma doesnt like or could turn on grandma and force the sale of the property.

Grandma should really meet with an estate planning attorney to go over her options.

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Posted

It would avoid probate regarding the home, but it wouldn't necessarily avoid probate of the rest of her estate. As for taxes, it depends on what taxes you're talking about.

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Posted

The tax question is far too complex to answer in this format. Yes, it would most likely avoid probate in regards to the house. However, probate may be necessary for other reasons, and adding someone to the house is not a great idea. If grandson ever ends up running into financial trouble or even gets a divorce, then that house is counted as his property and would be subject to that court process or could be attached by his creditors.

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Posted

I agree with my colleagues. The answer, in large part, depends on how this is done. Your aunt should visit with an estate planning attorney. She needs to set this up properly, in order to avoid all kinds of possible problems, down the road. There are ways to set this up that will likely achieve your aunt's goals. She should not attempt to do this on her own. There is also additional estate planning your aunt will need, including durable power of attorney forms for medical and financial matters. These avoid the need for probate during lifetime, in the event your aunt becomes incapacitated.

James Frederick

***Please be sure to mark if you find the answer "helpful" or a "best" answer. Thank you! I hope this helps. ***************************************** LEGAL DISCLAIMER I am licensed to practice law in the State of Michigan and have offices in Wayne and Ingham Counties. My practice is focused in the areas of estate planning and probate administration. I am ethically required to state that the above answer does not create an attorney/client relationship. These responses should be considered general legal education and are intended to provide general information about the question asked. Frequently, the question does not include important facts that, if known, could significantly change the answer. Information provided on this site should not be used as a substitute for competent legal advice from a licensed attorney that practices in your state. The law changes frequently and varies from state to state. If I refer to your state's laws, you should not rely on what I say; I just did a quick Internet search and found something that looked relevant that I hoped you would find helpful. You should verify and confirm any information provided with an attorney licensed in your state. I hope you our answer helpful!

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