Adding name to deed

My father in-law has a townhome in avenel, nj. He would like to add my name to the deed. What is the best way of doing this? Would there be any tax ramifications? The home is worth around 230,000 with no mortage.

The way to do it is to get a lawyer to draft the deed and have it signed, notarized, and recorded.

The implications are BROAD. Being put on the deed isn't like being made a member of a club. Your father-in-law would be giving half the house to you, irrevocably.

There are serious issues. Is this the house he's living in? Will he be needing money later that's tied up in the house? He can not get a reverse mortgage with someone younger than the qualifying age as an owner. It would be hard for him to sell or refi without your assistance. It may also jeopardize his medicaid eligibility.

For you, you will now get his basis which may cause you substantial tax issues when you subsequently sell (after his death). You'd get a stepped-up basis if you inherited the property instead.

Thanks for the response.

The home is a rental property. Do you think it might be better to have the entire home signed over rather then being put on the deed. We both have concerns of Uncle Sam getting a large portion (50%) of the property when dad is called to heaven.

His estate may or may not be subject to Federal estate tax. Only the amount over the exemption amount is subject to the Federal estate tax. However, giving you a house (or putting you on the deed) will require him to file a Federal gift tax return.

I recommend your father have a consultation with an estate planning lawyer to ensure he doesn't "shoot himself in the foot".

thanks for the suggestion. Any idea how to find someone in Avenel, NJ area?

kooksmooks said:

thanks for the suggestion. Any idea how to find someone in Avenel, NJ area?

Click to expand...

Google...
or even a phone book.

Let me rephrase. A reputable attorney.

kooksmooks said:

Let me rephrase. A reputable attorney.

Click to expand...

Google...
or even the phone book.

Of course, you'll want to interview and check references.

Here, try this link!

Let me google that for you