Minor's name on deed

[Stuartgerbil]

What is the name of your state? Virginia

Recently my youngest son was hospitalized, we have no health insurance and now we have over $18,000 worth of medical bills. We own our house, the bank does not. It is going to take my husband and I many many years to pay this debt off and we are worried that we will eventually be sent to collections. Our credit is poor so we would not be able to get a loan to pay it off. Is there any way we can put our oldest son, who is 12 years old, the sole owner of our house to at least safeguard our future and not have it in jeapardy? All the medical bills are under my name, not my husband, but both our names are on the deed. What would be the legalities of a minor owning a house?

[LindaP777]

OK, trying not to be judgemental, but the hospital/doctors provided a much needed service to your son, but now you don't want to pay them? You own your house free & clear (no payments), but yet instead of making payments to the hospital/doctors, you're looking for a way to stiff them??? You don't need to get a loan to pay them, just start making payments. You'd be surprised how they'll keep accepting the payments as long as you keep sending them.

[fairisfair]

are you eligible for your states medical plan. Remember that although you may not have been eligible before, these new bills may make you eligible. Some states offer retroactive coverage, it is worth an application.

[moburkes]

If she owns a house outright, I'm not sure that she will qualify, but there is no harm in looking into it.

[tranquility]

I'm sorry for the medical bills. I hope your son is better.

Even with bad credit, if you own a home outright, you should be able to find many who will loan you the money. Especially if the amount you seek is going to be so little as compared to the (probable) value of the home.

Putting the house into the hands of your child is a bad idea. First, it may not accomplish what you want. A transfer without value won't be looked kindly on if you need to go bankrupt. Second, a kid can't sign legal documents in a way to make them count. That means no one will do a deal with the property unless you get a guardian ad litem. (A person appointed by the court to protect the minor's interest.) That means no loans, insurance or sale of the home until you go through the court and get the guardian to agree.

Also, you would need to file a gift tax return for the gift. No tax would probably be due, but you would need to file a return.

[You Are Guilty]

Might want to brush up on fraudulent conveyances:

Originally Posted by §55-80

Every gift, conveyance, . . . transfer of, or charge upon, any estate, real or personal, . . . given with intent to delay, hinder or defraud creditors . . . of or from what they are or may be lawfully entitled to shall, as to such creditors, . . . be void.

[PghREA]

Arrange a meeting with the hospital and work out a payment plan.