Posted on: 04th Dec, 2006 07:42 pm
My parents and I have bought a house together and we are equal partners to the purchase. The mortgage has all of our names on it. We shall be able to pay it off in the next 5 years . My parents and I are thinking of changing the names in the deed to only my name. Can we do this before paying the loan fully? How to go about this?
Yeah, I believe changing the title is possible.
Adonis
Adonis
hi allen,
it is possible to transfer title prior to repaying a home loan. your parents can sign a quit claim deed and hand over the property to you. but depending upon the equity transferred, your parents may have to pay federal gift taxes provided the equity is worth more than $12,000 per donor (for 2006). however, no gift tax will be due if their lifetime gifts worth more than $12,000 per donee, per year do not exceed a total of $1 million.
i think it is better if you consult a tax advisor on this issue.
thanks,
caron.
it is possible to transfer title prior to repaying a home loan. your parents can sign a quit claim deed and hand over the property to you. but depending upon the equity transferred, your parents may have to pay federal gift taxes provided the equity is worth more than $12,000 per donor (for 2006). however, no gift tax will be due if their lifetime gifts worth more than $12,000 per donee, per year do not exceed a total of $1 million.
i think it is better if you consult a tax advisor on this issue.
thanks,
caron.