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legalgems, Arbitrator
Category: Real Estate Law
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Experience:  Just Answer consultant at Self employed
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My mom is 72 years old and holds the title to her home. She

Customer Question

My mom is 72 years old and holds the title to her home. She was losing her home I recently spent $20K to get her caught up. I now would like to refinance the home, but I am not on title. What are is best option: Create a Living Trust adding my name and Grant Deed to home to the trust?
JA: Since estate law varies from place to place, can you tell me what state this is in?
Customer: California
JA: Has any paperwork been filed?
Customer: No
JA: Anything else you want the lawyer to know before I connect you?
Customer: I would like to use the mortgage interest as a write off on my taxes going forward.
Submitted: 10 months ago.
Category: Real Estate Law
Expert:  legalgems replied 10 months ago.

Hello! I will be reviewing your question and posting a response momentarily; if you have any follow up questions please respond here. Thanks!

Expert:  legalgems replied 10 months ago.

I'm glad to hear you were able to save your mother's home.

The problem with transfers during life is as follows:

1. any gifts over $14,000 do not require the payment of gift tax but do require the filing of the return

2. upon death, if a heir receives property, they receive a "stepped up basis" so that the heir's tax basis is the fair market value of the property on the date of death, which is a huge tax benefit as it essentially wipes away any prior appreciation. That is not the case for gifts.

3. it exposes both parties to each other's debts in the event a creditor secures a lien.

If, knowing all that, one is still interested, then the owner can simply execute a quit claim deed, transferring 1/2 of the property to the desired person. That person can then put their ownership interest in a trust if they desire but it is not necessary.

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Information provided is for educational purposes only. Consultation with a personal attorney is always recommended so your particular facts may be considered. Thank you and take care.

Customer: replied 10 months ago.
Will Quit Claim provide access to refinance the property or Grant Deed?
Expert:  legalgems replied 10 months ago.

Either will; the lender will allow a refinance in the name of the parties on title, and both those documents will serve that purpose.

Expert:  legalgems replied 10 months ago.

Hi- just checking in to see if you needed clarification on any of the above information. If so please post here (there is no additional charge for this) and I will do my best to get you the requested information.

Thank you!

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