My mom is planning to retire. My husband & I want to buy the house, but our credit is not good. Is there a way we can be added

Asked over 4 years ago - Los Angeles, CA

to the title without checking credit or would a living trust/will work?

Attorney answers (3)

  1. Steven Alan Fink

    Contributor Level 20

    1

    Lawyer agrees

    Answered . She can do a grant deed naming you as joint tenant with rights of survivorship. When she dies you get the property. She remains both on title and on the loan. If you want to do some estate planning yu can do a living trust where you are the beneficiary of the trust.

    The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change.

  2. Henry Daniel Lively

    Contributor Level 20

    1

    Lawyer agrees

    Answered . If there is no debt on the property, your mom can carry back a note on the property. Then you can take title without having to obtain a loan. She could also co-sign on a loan for you if she is willing. Another option is a All Inclusive Deed of Trust (Wrap Around Mortgage), or the use of a trust. You should contact a real estate or estate planning attorney to discuss your specific options.

    Any individual seeking legal advice for their own situation should retain their own legal counsel as this response provides information that is general in nature and not specific to any person's unique situation. Circular 230 Disclaimer - Advice given in this response cannot be used to eliminate penalties with the IRS or any other governmental agency.

  3. Mark Brian Baer

    Contributor Level 14

    1

    Lawyer agrees

    Answered . I would caution you about having your names added to the title because that will cause the property to be reassessed at the current value for property tax purposes (at least to the extent of the interest conveyed to you and your husband). Furthermore, gifts of more than $12,000.00 in any given year (to any particular person) are taxable and the one making the gift (your mother) would have to pay the tax. It is true that she can make a gift of $12,000.00 per year to each of you without tax consequences.

    I would also caution you that I am now dealing with a divorce case where my client's mother did the exact same thing. She conveyed title to her daughter and son in law. They are now divorcing and my client and her mother are very upset about having learned that the soon to be ex son in law has an interest in that house. If your mother added your name and not your husband's, this problem would not occur. If your mother gave the property to you at her death and not to both of you, this would not happen.

    The other problem with her adding you and/or your husband to the title is that a creditor of yours (and/or your husband's) can place a lien on your mother's property. If your credit is not good for a reason, it may be best to leave the property in your mother's mane and for her to covey it to her through a living trust upon her death.

    The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change.

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