Title Vesting for New Home

[natomasguy]

What is the name of your state?What is the name of your state? California

I am purchasing a home with my parents for them to live in (I will not be living in the home, I own my own home) and need advice on the best title vesting for ownership to have the least tax consequences, liability to me upon their death and the easiest title conveyance. There is also the issue of liability for the lien and payments, which makes a case for me (son) not being on the original deed and note.

We were going to hold title as joint owners (mom, dad and son) with right to survivorship or we could have them hold title as husband and wife, community property, with a living trust ammendment listing me, the son, as eventual owner upon death.

Which ownership method would be better from a legal and tax perspective? Other options for vesting?

 

[nextwife]

WE do not know your individual tax. credit, liability and inheritance issues. Speak to an estate planning or RE attorney with whom you discuss your background info. They will then be in a better position to properly advise you.

 

[natomasguy]

Title Vesting

I am a single man, no children, no liabilities except my own home, working fulltime, age 48, I have no inheritance issues other than this house we are purchasing - parents have no other assets, I am putting up 1/3 of their down payment , but will not be making the payments.

Does this info. help to get a more insightful answer, with a consult your attorney qualifier/disclaimer as a part of the answer?

 

[HomeGuru]

I am a single man, no children, no liabilities except my own home, working fulltime, age 48, I have no inheritance issues other than this house we are purchasing - parents have no other assets, I am putting up 1/3 of their down payment , but will not be making the payments.

Does this info. help to get a more insightful answer, with a consult your attorney qualifier/disclaimer as a part of the answer?

**A: No, it does not help. Read nexie's response again.

 

[natomasguy]

Thanks, I got a more helpful answer in the inheritance tax law forum. Just needed some basic info. that applies to all situations regardless of personal info., such as - how cost basis of property at time of death is calculated, if being on title initially effects cost basis for tax purposes (it does - cost basis would be calculated at time of purchase vs. value at time of death - If I were on the title from the purchase date, I would owe taxes based on the purchase price vs. owing taxes on the increased value from time of death to sales date, a huge $$ difference)........."see a lawyer" is really not very helpful initial fact finding info.

Of course I will visit a real estate attorney to explore all avenues, but was looking for some basic info. to start with.

 

[HomeGuru]

Thanks, I got a more helpful answer in the inheritance tax law forum. Just needed some basic info. that applies to all situations regardless of personal info., such as - how cost basis of property at time of death is calculated, if being on title initially effects cost basis for tax purposes (it does - cost basis would be calculated at time of purchase vs. value at time of death - If I were on the title from the purchase date, I would owe taxes based on the purchase price vs. owing taxes on the increased value from time of death to sales date, a huge $$ difference)........."see a lawyer" is really not very helpful initial fact finding info.

Of course I will visit a real estate attorney to explore all avenues, but was looking for some basic info. to start with.

**A: Ok, good luck to you.