Joint Tenancy with Rights of Survership

[jmmahr]

What is the name of your state? NY

My mother recently died, now my father want to add me as JTWRS (Joint Tenancy W/ right of survivorship) on his home in NY which is paid off.
I understand that the house will pass to me upon his death.
My husband is worried about TAX implications this could cause to us.

Will the house pass to me using which cost basis - current market value or what he paid back in the 50's?

Are there any other tax issues I need to be aware of?

And also how does he add me to the deed - will we need to see a lawyer for the paperwork ?

THANKS

[lwpat]

You and your father need to see an elder care attorney. You need to take care of other issues such as a living will, POA etc in addition to the house. There is also the problem with Medicaid if that may be an issue in the future. You don't want to do it wrong. You can find one at the NAELA website.

[ShyCat]

If your father adds you to the deed, you become a co-owner and your cost basis is the same as his (i.e., what he paid for it in the 50's plus any capital improvements). Upon his death, you simply become the sole owner of the house. You do not get the step-up in cost basis that you would if you had instead inherited the house.

Your father would also have to file a gift tax return. He may or may not have to pay any gift tax, depending on how much of the $1M exemption has not yet been used up by other gifts greater than the maximum per person per year (currently $12000).

It also makes his house vulnerable to your own financial difficulties that may arise. The house counts as one of your assets if you ever get sued. And, of course, there's the potential Medicaid issue that was mentioned in the prior reply.