Posted on: 22nd Jun, 2007 12:42 pm
I want to pay off my mortgage and give ownership of my home to my sister. What is the best way to go about this? What are the financial ramifications?
Hi Linda,
If you are going to pay off the mortgage and then transfer the ownership to her then as the title will clear of any liens you can use a warranty deed for making the transfer.
Miller
If you are going to pay off the mortgage and then transfer the ownership to her then as the title will clear of any liens you can use a warranty deed for making the transfer.
Miller
Hi Linda,
Welcome to Mortgagefit forum.
One thing is that as the home will be given as a gift, being the donor you can have gift taxes to pay for.
Gift taxes will have to be paid only if the allowed gift tax exemption limits are crossed. The annual exemption limit is $12,000 & if the value of the gift made is less than or equal to this amount then gift taxes are not required to be paid.
But if the amount exceeds this limit then you will have to see if your lifetime gift tax exemption limit has been crossed or not which is $1 million. If this limit has not been crossed then there are no tax ramifications for you.
Colin
Welcome to Mortgagefit forum.
One thing is that as the home will be given as a gift, being the donor you can have gift taxes to pay for.
Gift taxes will have to be paid only if the allowed gift tax exemption limits are crossed. The annual exemption limit is $12,000 & if the value of the gift made is less than or equal to this amount then gift taxes are not required to be paid.
But if the amount exceeds this limit then you will have to see if your lifetime gift tax exemption limit has been crossed or not which is $1 million. If this limit has not been crossed then there are no tax ramifications for you.
Colin
Hello Linda,
As you wish to transfer the ownership of your home to you sister, you can try out with a warranty deed. The Warranty deed would transfer the title to your sister. Also, since the title is free from any lien, hence there would not be any problem in the transfer. :)
Regarding the financial ramifications, you can seek advice from a tax advisor who would be able to clear your doubts.
As you wish to transfer the ownership of your home to you sister, you can try out with a warranty deed. The Warranty deed would transfer the title to your sister. Also, since the title is free from any lien, hence there would not be any problem in the transfer. :)
Regarding the financial ramifications, you can seek advice from a tax advisor who would be able to clear your doubts.
Hi Linda,
If you wish to transfer the ownership of your house to your sister you can sign on a quitclaim deed. But you should remember that by signing this deed, you can transfer only the title of the property, not the loan. For other financial obligations related to the property transfer, you can seek the guidance of an attorney.
Thanks.
If you wish to transfer the ownership of your house to your sister you can sign on a quitclaim deed. But you should remember that by signing this deed, you can transfer only the title of the property, not the loan. For other financial obligations related to the property transfer, you can seek the guidance of an attorney.
Thanks.