QUESTION
Should I put my daughter's name on my house before I die?
Asked on Dec 01st, 2011 on Estate Planning - Arizona
More details to this question:
I have a house that is not paid for yet. Should I put my daughter's name on now, before I die?
7 ANSWERS
Appellate Practice Attorney serving Bloomfield Hills, MI
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Law Office of William L. Spern
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Prepare a will and do not put your daughters name on the deed.
Answered on Dec 12th, 2011 at 9:47 AM
Tax Attorney serving Portland, OR
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Bullivant Houser Bailey PC
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I would not. Except in very unusual circumstances, the real and potential problems it creates are more significant than the possible probate savings.
Answered on Dec 05th, 2011 at 4:07 PM
Trusts and Estates Attorney serving Jacksonville, FL
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Law Office of David M. Goldman PLLC
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This might trigger a due on sale clause and create potential tax problem when she sell the home. You typically want an appreciated asset to transfer after death, this can be done with a trust or a lady bird deed. You should consult with a lawyer to review your circumstances to see what make sense in your situation as some options can cause other problems with medicaid or other things if they are needed in the future.
Answered on Dec 05th, 2011 at 1:51 PM
Donald B. Lawrence
That would be a good idea only if you do it by the correct method. One cannot tell from your question if you may die imminently or sometime in the indeterminate future. In either instance, it should remain your house and in your control until you die or decide to part with it permanently. In order to have the house go to your daughter at your death without the hassle of probate, you should use an enhanced life estate deed, sometimes referenced as a "Lady Bird" deed. In this deed you state that you are transferring title to "X" (your daughter or whomever you want) but are reserving the right during your lifetime to revoke the transfer, to sell the property, to mortgage the property or exercise any other incident of ownership during your lifetime. This gives you complete control over the property but assures that your daughter will get it at your death unless you have conveyed it, sold it or otherwise disposed of it during your lifetime. That way, if your situation changes and you decide to do something other than give it to your daughter at your death, you do not need to get her permission to do so and she cannot force you to sell it or to split the value of it with her, not that she would ever do any of those things but you won't have to worry about it. This answer also assumes that your daughter is a competent adult and not a child or incapacitated. If those factors are applicable, you need to ask additional questions.
Answered on Dec 05th, 2011 at 10:21 AM
The answer to your question depends on the all of the facts of your specific situation. No attorney can give you specific advice to your situation without knowing the entire situation. I can comment generally based on the information that you provided in your question. However, you should understand that the information contained in your question does not contain essential information needed to provide you with legal advice. This message is not intended to be legal advice for you and you should not consider that we have formed an attorney/client relationship. I am assuming that you are in Oregon and that Oregon law applies. You really need to think of this in terms of your entire family and your entire estate. An estate plan needs to cover everything and not just one part to be effective. What are all of your assets and all of your debts and liabilities? Given them, how does this idea fit into the entire plan? If you only have one child and no spouse and no other commitments, then you might want to put the house in both of your names as joint tenants. You need to be sure that the house is worth more than the debt on the house and that your child wants the house and will be able to use it.
Answered on Dec 05th, 2011 at 10:17 AM
Probate Attorney serving Newport, OR
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Minor, Bandonis & Haggerty P.C.
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The trust deed (mortgage) almost certainly has a "due on sale" clause, which makes any transfer a default on the mortgage. You can't "put somebody's name on" the deed you are transferring an interest in the house to her. This is almost always a bad idea. It is a gift, which has ramifications, and it makes the house subject to your daughter's creditors and other problems. Oregon just adopted a new law allowing for "transfer on death" deeds, so that may be an option. But please, see a good estate planning lawyer. Once you pass away, bad estate planning cannot be fixed.
Answered on Dec 05th, 2011 at 9:26 AM
Rather than transfering the house to your daughter now, you may want to consider executing a "beneficiary deed." This document preserves your interest in your house during your lifetime, but automatically transfers ownership to a named beneficiary upon your death without the need for probate. I recommend you speak with an attorney for more details to determine if this is your best course of action.
Answered on Dec 05th, 2011 at 9:18 AM