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Do we need to deed our ownership to our son for a loan?

Do we need to deed our ownership to our son for a loan?

Q: Can my parents just give me their house?

Yes, your parents can give you their house through a gift deed. However, this may have tax implications for both parties, such as gift taxes or capital gains taxes when you sell the property. It's important to understand these implications and consider consulting a tax advisor or attorney before proceeding.

Full question:

We have purchased a home with our son and daughter-in-law. He would like to put a loan on it to buy another home. At our age we don't want to be responsible for the loan. Do we need to deed our ownership over to him and if so how do we do that? We have only owned the home for six months.

Category: Real Property
Subcategory: Joint Tenants
Date: 04/07/2025
State: California

Answer:

In joint tenancy, all owners share equal rights to the property, and decisions about it must be made together. This includes taking out a second mortgage, which requires joint agreement. On the other hand, tenancy in common allows individuals to own separate shares of the property. Each owner can make independent decisions regarding their share, including obtaining a loan secured by their portion. However, if a tenant in common defaults, the property may need to be sold, and proceeds divided among the owners and creditors.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Can you add someone to your house without refinancing?

Yes, you can add someone to your house title without refinancing. This is typically done by executing a new deed that includes the new owner's name. However, if there is a mortgage on the property, the lender may need to be notified, as adding an owner can affect the loan terms. Be aware that this does not change your mortgage obligation, and you remain responsible for the loan unless the lender agrees otherwise.

Should you put your adult children on your house deed?

Putting your adult children on your house deed can have benefits, such as avoiding probate and allowing them to inherit the property more easily. However, it also means they share ownership and decision-making rights. Additionally, this can impact your taxes and eligibility for certain benefits. It's wise to consult with a legal professional before making this decision.

Can my parents just give me their house?

Can I add someone to my house title without refinancing?

How much does it cost to add someone to a house title?

The cost to add someone to a house title can vary depending on your location and the complexity of the deed. Typically, you may incur costs related to drafting the new deed, recording it with the county, and possibly legal fees if you hire an attorney. It's advisable to check with local authorities or a legal professional for specific costs in your area.

How to give your house to your child without paying taxes?

To give your house to your child without incurring taxes, consider using a life estate deed or gifting it below the annual exclusion limit for gift taxes. However, be aware that this can have implications for capital gains taxes when your child sells the property. Consulting a tax advisor or estate planning attorney can help you navigate these options effectively.