Posted on: 23rd Jul, 2007 02:03 pm
I am living in a house my father and brother bought about five years ago. It is in my brother's name. My brother lives with my mom. We share her care. (My dad passed away 2 months aqo without a will, but a community property agreement with my mom).
There are two issues here (two houses). I want my name added to the house I'm in, and we want to keep the other house in the family and therefore put us kids' names on it with mom's. Would quit claim deeds be OK or do we need title deeds? What are the tax ramifications? I don't understand the income tax effects on having part of a house signed over to me. and my brother was concerned about the income tax effects of having the kid's names on mom's house. From reading your site, it appears the grantor is taxed, not the grantee. But isn't there an income tax for the grantee? Also, would I be responsible for half the property taxes if my name were on my house?
My brother has not been forthcoming with info and I am feeling very vulnerable and not trusting. I am on disabilty and it is my understanding I can own a home, I just don't know if I can afford the taxes/utilities/insur.
Can my brother take out a loan on my house if my name is on it through a quit claim and not a title deed? He has already done remodeling on it that I did not want or ask for., and there is much conflict over it.
We were hoping to fill out the paperwork on our own, and then have an attorney go over them. I cannot afford a long legal involvement, and my brother and sister seem to think they can resolve this without an attorney. Also, what happen to the houses if my mom has to go to a nursing home?
Thanks, annie
There are two issues here (two houses). I want my name added to the house I'm in, and we want to keep the other house in the family and therefore put us kids' names on it with mom's. Would quit claim deeds be OK or do we need title deeds? What are the tax ramifications? I don't understand the income tax effects on having part of a house signed over to me. and my brother was concerned about the income tax effects of having the kid's names on mom's house. From reading your site, it appears the grantor is taxed, not the grantee. But isn't there an income tax for the grantee? Also, would I be responsible for half the property taxes if my name were on my house?
My brother has not been forthcoming with info and I am feeling very vulnerable and not trusting. I am on disabilty and it is my understanding I can own a home, I just don't know if I can afford the taxes/utilities/insur.
Can my brother take out a loan on my house if my name is on it through a quit claim and not a title deed? He has already done remodeling on it that I did not want or ask for., and there is much conflict over it.
We were hoping to fill out the paperwork on our own, and then have an attorney go over them. I cannot afford a long legal involvement, and my brother and sister seem to think they can resolve this without an attorney. Also, what happen to the houses if my mom has to go to a nursing home?
Thanks, annie
Hi Annie,
Welcome to Mortgagefit discussion board.
I am very sorry to hear about your father's death.
Correct me if I go wrong somewhere in understanding your post.
First house is in your brother's name and you want your name added to it. To be included on this house your brother will have to sign a deed to transfer part ownership in your name.
The second house, as there was a community property agreement between your father & mom, belongs to your mom now. To include anyone on the title of this house your mom will be making a new deed and signing as the grantor.
"Can my brother take out a loan on my house if my name is on it through a quit claim and not a title deed?"
If it is going to be solely in your name then he cannot but if it is jointly owned by both of you then he can. The loan amount will be based on the value of the equity his share of property has.
Thanks
Blue
Welcome to Mortgagefit discussion board.
I am very sorry to hear about your father's death.
Correct me if I go wrong somewhere in understanding your post.
First house is in your brother's name and you want your name added to it. To be included on this house your brother will have to sign a deed to transfer part ownership in your name.
The second house, as there was a community property agreement between your father & mom, belongs to your mom now. To include anyone on the title of this house your mom will be making a new deed and signing as the grantor.
"Can my brother take out a loan on my house if my name is on it through a quit claim and not a title deed?"
If it is going to be solely in your name then he cannot but if it is jointly owned by both of you then he can. The loan amount will be based on the value of the equity his share of property has.
Thanks
Blue
"From reading your site, it appears the grantor is taxed, not the grantee. But isn't there an income tax for the grantee? Also, would I be responsible for half the property taxes if my name were on my house? "'
You are correct, at the time property is transferred tax implications are for the grantor if the value for which property is transferred is less than its present value. If the value is less then gift taxes may have to be paid if the amount of gift exceeds the gift tax exemption limits.
Please read go through this page to know more about gift tax implications of transferring property using a quit claim deed: http://www.mortgagefit.com/discuss/quitclaim-taximplications.html
And this page about Income Tax Aspects of Property Transfers - http://www.extension.iastate.edu/agdm/wholefarm/html/c4-20.html
The other thing is that after you become co-owner of the house, you will have to pay property taxes along with your brother.
Miller
You are correct, at the time property is transferred tax implications are for the grantor if the value for which property is transferred is less than its present value. If the value is less then gift taxes may have to be paid if the amount of gift exceeds the gift tax exemption limits.
Please read go through this page to know more about gift tax implications of transferring property using a quit claim deed: http://www.mortgagefit.com/discuss/quitclaim-taximplications.html
And this page about Income Tax Aspects of Property Transfers - http://www.extension.iastate.edu/agdm/wholefarm/html/c4-20.html
The other thing is that after you become co-owner of the house, you will have to pay property taxes along with your brother.
Miller