Title Advice after Parent Death

[ColoradoSon]

What is the name of your state (only U.S. law)? CO

My Mother passed away in late July and my father is currently battling cancer.

My mother is listed on titles with my father (House, Car, Motorcycle). I am wondering how to remove my mother's name from the titles and also wondering if we should add my name and/or my sister's name to the titles? She is my only sibling and we are in complete agreement about everything, not looking to make money, but looking to do whatever will make it easier when the time comes to sell the vehicles and the house, decrease taxes if possible, and avoid probate.

Thank you in advance for any guidance

 

[LdiJ]

What is the name of your state (only U.S. law)? CO

My Mother passed away in late July and my father is currently battling cancer.

My mother is listed on titles with my father (House, Car, Motorcycle). I am wondering how to remove my mother's name from the titles and also wondering if we should add my name and/or my sister's name to the titles? She is my only sibling and we are in complete agreement about everything, not looking to make money, but looking to do whatever will make it easier when the time comes to sell the vehicles and the house, decrease taxes if possible, and avoid probate.

Thank you in advance for any guidance

Unfortunately, it is difficult to both avoid taxes AND probate. If or your sister's (or both) name goes on any of the assets (with right of survivorship) that avoids probate. However, in that case you have been gifted the asset and you lose the stepped up basis, therefore when you sell it, you pay more capital gains tax. That isn't really an issue with the car or motorcycle because those depreciate, but it is an issue with the house.

Simplified Example: Dad paid 40k for his house 40 years ago. Today it is worth 200k. If he puts your names on it to avoid probate your taxable gain will be 160k with 24k (or more depending on your individual tax situations) of capital gains tax.

If you inherit the property (have to go through probate) then you would get a stepped up basis to fair market value and your taxable gain would be zero...so zero tax.

Now, if dad is healthy enough to go to an estate planner there are ways (trusts, TOD's etc) that could avoid both probate and tax, but depending on how much probate actually costs in your state, you might pay more to an estate planner than the cost of probate.

By all means switch the car and motorcycle titles if you want to, that does tend to lessen complication, and do the same for bank accounts, IRA's and other financial accounts, but unless probate in your state is VERY expensive, you probably do not want to do that with the house.

 

[justalayman]

What is the name of your state (only U.S. law)? CO

My Mother passed away in late July and my father is currently battling cancer.

My mother is listed on titles with my father (House, Car, Motorcycle). I am wondering how to remove my mother's name from the titles and also wondering if we should add my name and/or my sister's name to the titles? She is my only sibling and we are in complete agreement about everything, not looking to make money, but looking to do whatever will make it easier when the time comes to sell the vehicles and the house, decrease taxes if possible, and avoid probate.

Thank you in advance for any guidance

what does your father say about this?

has your mother's estate been through probate?

how are the titles to each of the properties in questions held;

with the house, you have tenants in common or joint tenancy with rights of survivorship?

basically the same thing with the vehicle titles; does the term: "Joint Tenancy with Rights of Survivorship" appear on the titles?

 

[ColoradoSon]

Reply

what does your father say about this? - My father is completely on board with whatever will make things smoother for my sister and I when we need to take care of his estate. He has already drafted a will listing my sister and I as beneficiaries and we are both listed on Medical and Financial POAs.

has your mother's estate been through probate? - No, no probate

how are the titles to each of the properties in questions held; - My father thought he put them as Him "Or" Her, but when reading them, they simply list his name and her name right below it

with the house, you have tenants in common or joint tenancy with rights of survivorship?

basically the same thing with the vehicle titles; does the term: "Joint Tenancy with Rights of Survivorship" appear on the titles? - Joint Tenancy with Rights of Survivorship" with regards to the house, but I think it will make the sale easier when the time comes, if it is in only my Dad's name.

Thank you again in advance for any suggestions

 

[justalayman]

what does your father say about this? - My father is completely on board with whatever will make things smoother for my sister and I when we need to take care of his estate. He has already drafted a will listing my sister and I as beneficiaries and we are both listed on Medical and Financial POAs.

ok

has your mother's estate been through probate? - No, no probate

if she left no will and if you and your sibling are the only descendents (legally) of your mother and you are also descendants (legally) then your father inherits everything. http://livingtrustnetwork.com/estate-planning-center/applicable-state-laws/intestate-succession/colorado-intestacy-laws.html

how are the titles to each of the properties in questions held; - My father thought he put them as Him "Or" Her, but when reading them, they simply list his name and her name right below it

I would suggest contacting the DMV> I have read conflicting information regarding multiple owners. On one site it said multiple owners are required to title it jointly with rights of survivorship (wros). Another source said otherwise. If it is joint WROS the direction was to take the death certificate to the DMV and apply for a new title in the survivors name. If it is not joint and if the above applies, the action would be the same I believe.

basically the same thing with the vehicle titles; does the term: "Joint Tenancy with Rights of Survivorship" appear on the titles? - Joint Tenancy with Rights of Survivorship" with regards to the house, but I think it will make the sale easier when the time comes, if it is in only my Dad's name.

it is essentially in only your father's name now. Upon the death of your mother your farther became the sole owner. I cannot find anything quickly on how to register your mother's death so that title will be formally vested fully in your father's name. I would suggest contacting the county register of deeds and speaking with them. While they cannot give legal advice they can possibly provide a lot of information. In some states it is as simple as registering your mother's death certificate and attach it to the property records.

one misconception is that there is a physical record of title of real estate. That is not correct. Ownership is determined by researching the title history and all deeds and other actions involving the property and determining who owns the property. If your father's property were to be researched now it would be determined that he is the sole owner (given the situation being as you describe things).