Title/Mortgage Question

[keeshy2]

My fiancee & I live in Virginia. He owns a house. We're getting married soon and neither of us knows the answer to this question:
After we're married, what is the best way to handle the ownership issue? He has decided he wants to make us joint owners. Is it possible to add me onto the title & mortgage without refinancing? Or can I just be added onto the title? Is there such a thing as survivorship rights?
We don't want to refinance since he has an extremely low interest rate & my credit is good but not great.
We will definitely use an attorney to do this if needed - we just don't want to sound like idiots when we call
Thanks.

 

[Tracey]

Fair enough. I don't like to sound like an idiot either.

If he gives you 1/2 the equity in the house, this is not a sale & won't trigger the due on sale claise of the lease. You'd simply fill out a wuit claim deed 'from H to H&W as joint tenants with right of survivorship'. Your basis will be the same as his & you may pay capital gains tax later on. But that's a whole 'nother topic.

If he sells you 1/2 the equity, you basis is whatever he sells it to you for. One way to do this is to 'sell' you the house on paper & set up a payment plan, then gift you the $$ to make the payments. You could also set up a contract detailing how you build equity in the home (helping pay mortgage, taxes, work on the place, etc.).

Another option is to enter into a contract to leave you the house in his will. You get the step up in basis at that time. Also include clauses detailing that any subsequent houses you two purchase will be owned jointly & what share of the house you get if you divorce.


There are lots of other options too. Just make sure your attorney explains the estate planning & tax consequences of each option before you choose.

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This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws. [email protected] - please include some facts so I know who you are!

 

[David J. Miller]

If I may, I'd like to pose a question to Tracy. Are these steps necessary because Virginia is not a community property state?

Thanks!!