Posted on: 02nd Feb, 2009 01:50 pm
My mother is in the early stages of Alheimer's and we are trying to decide how to handle her home that is paid off. Some people say quit claim, others say deed of transfer with the living trust, and how does it effect the property taxes which are very low right now?
Hi sherry,
A quitclaim deed can be a good way of transferring the property from your mother to you. while doing that you may have to pay doc stamp tax, transfer tax, recording fees etc, depending on which state you live in. Once the quitclaim is executed, the grantee has to pay the property taxes. Establishing a living trust involves a lot of expense. The costs depend on the current rate of property in your locality, how complex the estate is. Though the costs of setting up a trust are higher, it can help you save some valuable money when the assets are distributed, as it avoids the process of probate.
A quitclaim deed can be a good way of transferring the property from your mother to you. while doing that you may have to pay doc stamp tax, transfer tax, recording fees etc, depending on which state you live in. Once the quitclaim is executed, the grantee has to pay the property taxes. Establishing a living trust involves a lot of expense. The costs depend on the current rate of property in your locality, how complex the estate is. Though the costs of setting up a trust are higher, it can help you save some valuable money when the assets are distributed, as it avoids the process of probate.