• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Adding a Minor to Property Title

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

ringbar

Junior Member
What is the name of your state (only U.S. law)? Minnesota.

My mother and father in-law (both elderly) wish to put their home and lake property in my husband and brother in-laws (their youngest son) names to protect the property from going to the state in the event they need assisted living or from the other siblings from insisting it be sold upon their death. Buying out the other siblings upon my mother and father in-laws death is not an option. Unfortunately, my brother in-law has filed bankruptcy leaving my husband as the only person to which this property will be named to. Because my brother in-law has filed bankruptcy, he wants the property to now go into his minor sons name along with my husbands. His son will turn 13 next month. What are the ramifications of putting a minors name on property along with my husband who is 48 years of age? I realize this is complicated but I think it is a bad idea and want out if they insist on going in this direction. The state is Minnesota. My in-laws wish to complete this ASAP even though they dislike the "minor" idea, they also do not want to disappoint their youngest son.
 


ShyCat

Senior Member
Wow. The things people are willing to do....

Gifting of the property will in fact have many ramifications, not the least of which are gift taxes and Medicaid eligibility, even without the possible complications of a minor on the deed. The parents would have to file a gift tax return to apply against their lifetime unified gift/estate tax exemption, and pay gift tax if necessary and potentially increase the amount of estate taxes due when they pass. There is a 5-year lookback period for Medicaid eligibility so it is unlikely that the taxpayers will be footing the bill while the parents give away their property. Remember, Medicaid is intended to be welfare for the truly indigent, not for heirs.
 

anteater

Senior Member
Just to add to what ShyCat explained...

Politely request that they cool their jets until they have consulted with an attorney experienced in estate planning and/or elder law.
 

ringbar

Junior Member
We have been consulting with an attorney for months but since my brother in law only recently filed for bankrupcy, the deal has been put on hold (at my brother inlaws request). My brother inlaw just asked my mother and father inlaw to add his son to the title recently, I believe, as a desperate attempt to hold on to the property the only way he can think of. I wanted to ask about the "minor" part to if 1.it is even legal to do so. 2. Shoul my brother inlaw be told no and not bother with the attorney with this detail. This property has been in the family for more than a century and it is the intention of my mother and father inlaw to see to it that it remains in the family after their deaths.
 

HomeGuru

Senior Member
We have been consulting with an attorney for months but since my brother in law only recently filed for bankrupcy, the deal has been put on hold (at my brother inlaws request). My brother inlaw just asked my mother and father inlaw to add his son to the title recently, I believe, as a desperate attempt to hold on to the property the only way he can think of. I wanted to ask about the "minor" part to if 1.it is even legal to do so. 2. Shoul my brother inlaw be told no and not bother with the attorney with this detail. This property has been in the family for more than a century and it is the intention of my mother and father inlaw to see to it that it remains in the family after their deaths.
**A: it is legal to add a minor to a deed but unwise. A trust is generally used in lieu.
 
This property has been in the family for more than a century and it is the intention of my mother and father inlaw to see to it that it remains in the family after their deaths.

That may be the parents' intention, but, as suggested by ShyCat, a transfer will not be effective if parents need governmental assistance during the "look back" period and/or there are other creditors who assert a claim against parents and who believe the transfer was an attempt to defraud. What does the attorney you are consulting say about those issues???
 

ringbar

Junior Member
My inlaws will likely come and live with my husband and myself when they are no longer able to live on their own. As for other creditors, they have none. Our attorney was concerned about the property going in the names of two sons from the start and advised them both that one should but-out the other in the future. I have no desire to enter into any type of arrangement with a 13 year-old boy. Thank you.
 

FlyingRon

Senior Member
As others have pointed out, it's a bad idea because of medicaid eligibility issues. Depending on the aggregate property values involved there may be gift/estate tax issues.

It is bad for the kids because they now acquire the parent's tax basis on the property rather than having it stepped up as they would if the parent's had died. A trust would be an easier conveyance.

The next issue is as you said, minors can't convey property. If it become necessary to sell or otherwise deal with the property, it's going to be very difficult (a court ordered guardian will need to be appointed). A trust can give the parents or whoever trusteeship instead.

I recommend an attorney...with a property transfer this big, the attorney fees will be minor.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top