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Barrister
Barrister, Attorney
Category: Estate Law
Satisfied Customers: 36240
Experience:  16 yrs estate law, real estate. Wills/Trusts/Probate
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My mother has cancer and she has signed her house over to me

Customer Question

My mother has cancer and she has signed her house over to me and my brother. She has a mortgage on it of about $24,000.00. The house is only worth about $35,000.00. My brother has moved into the house and is paying the mortgage. When she dies I will pay the mortgage off in cash and have my brother make payments to me. Will I have to claim anything on this to the IRS? Should I take my name off the title before my mother dies? My brother can't get a loan because he just filed bankruptcy. What should I do? Please help me.
Submitted: 1 year ago.
Category: Estate Law
Expert:  Barrister replied 1 year ago.

Hello and welcome! My name is ***** ***** I will try my level best to help with your situation or get you to someone who can.

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Will I have to claim anything on this to the IRS?

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No, this is just a gift from mother to you so there are no tax implications to you. But if brother starts making payments to you, if you charge interest you would have to report that as income. However, I would make sure that you had any agreement with brother about the mortgage payments in writing so you can enforce it by selling the house if necessary to be repaid.

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Should I take my name off the title before my mother dies?

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I am not sure why you would want to do that unless you want to give up your ownership interest in it.

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My brother can't get a loan because he just filed bankruptcy.

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There is an exemption in BK for a person's homestead for up to $37,775, so the creditors of brother couldn't come after the house if he is living there.

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thanks

Barrister

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