QUESTION
can my in-laws do a deed transfer in order to give us their house even though there is an existing mortgage on the house?
Asked on Nov 18th, 2011 on Residential Real Estate - New York
More details to this question:
Our parents want to give us their house through a deed and mortgage transfer even though mine nor my wife''s name is on the deed. The bank suggested that the parents re-finance and add our names to the deed then in a few years they can transfer the deed and existing mortgage to us. Is this possible? and if so is there anything that I should no that I don''t?
1 ANSWER
The motives for making the transfer in question should be examined carefully before making any transfer. Many times clients are interested in making a transfer and the real motivation behind the transfer is asset protection for long-term care needs. This is a very complex issue with the interplay of income tax, gift tax an Medicaid regulations not to mention protection of your parents' rights to continue to occupy the premises and retain real estate tax reductions. A thorough consultation should occur with an experiences elder law attorney before entering into this transfer.
Alfred Polizzotto III
Answered on Nov 19th, 2011 at 2:14 PM