Question on changing grant deed

[dorayaki]

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

we have a question on how to change our grant deed.

Currently on our grand deed:

For a valuable consideration, receipt of which is hereby acknowledged:
Mom, an unmarried woman as to an undivided 70% interest, Ben and Sharon husband and wife as to an undivided 30% interest as tenants in common.

My mom is over 70+ and she wants to gift us her 70% interest in this property. I checked with county and they said we need to "record" new grant deed first to make change in title, then fill out BOE 58AH form.

my question is, how would we go about in stating that in the new grant deed?

do we word it like this?
Mom, an unmarried woman gifts her undivided 70% interest to Ben and Sharon husband and wife as to an undivided 100% interest total as tenants in common.

much appreciate all the help. thanks!

 

[Zigner]

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

we have a question on how to change our grant deed.

Currently on our grand deed:

For a valuable consideration, receipt of which is hereby acknowledged:
Mom, an unmarried woman as to an undivided 70% interest, Ben and Sharon husband and wife as to an undivided 30% interest as tenants in common.

My mom is over 70+ and she wants to gift us her 70% interest in this property. I checked with county and they said we need to "record" new grant deed first to make change in title, then fill out BOE 58AH form.

my question is, how would we go about in stating that in the new grant deed?

do we word it like this?
Mom, an unmarried woman gifts her undivided 70% interest to Ben and Sharon husband and wife as to an undivided 100% interest total as tenants in common.

much appreciate all the help. thanks!

Your question, while seemingly simple, goes beyond the scope of this (or any) legal forum. You should consult with a local attorney.

 

[FlyingRon]

What you're asking sounds about right, but as Zig says, you should employ a lawyer for several reasons. First, you're going to want to get this thing properly drafted and recorded. Most attorneys that handle deeds can also arrange owner's title insurance which you will want (I wouldn't even take property from my sainted aunt without title insurance). Lastly, it would be best for her to be advised as to the adverse implications of her further giving away property to you. SHe's already screwed herself for reverse mortgages, and she may disqualify herself from medicaid services by these transfers. For you, understand that these gifts result in you acquiring her low basis in the property rather than it being stepped up if you had inheritted it. This can make a substantial tax difference to you.

 

[dorayaki]

What you're asking sounds about right, but as Zig says, you should employ a lawyer for several reasons. First, you're going to want to get this thing properly drafted and recorded. Most attorneys that handle deeds can also arrange owner's title insurance which you will want (I wouldn't even take property from my sainted aunt without title insurance). Lastly, it would be best for her to be advised as to the adverse implications of her further giving away property to you. SHe's already screwed herself for reverse mortgages, and she may disqualify herself from medicaid services by these transfers. For you, understand that these gifts result in you acquiring her low basis in the property rather than it being stepped up if you had inheritted it. This can make a substantial tax difference to you.

well the house is almost paid off and the 30% interest we have is because we are the ones taking out the mortgage loan.

 

[Zigner]

well the house is almost paid off and the 30% interest we have is because we are the ones taking out the mortgage loan.

If you're taking out a mortgage loan, then the folks doing that for you will fix this.
If you've already taken out a mortgage loan, then this act may cause the balance to become due on the mortgage.

It's even MORE apparent that you need the assistance of an attorney.

 

[FlyingRon]

well the house is almost paid off and the 30% interest we have is because we are the ones taking out the mortgage loan.

It still doesn't make a whole lot of difference. Mom is jeopardizing her future by giving away substantial assets.

 

[dorayaki]

Zig, no, we are not taking out a mortgage loan. since it's almost paid off, we don't have short term plans to take out a loan. mom is just asking how to go about in giving us her 70% share as gift.

It still doesn't make a whole lot of difference. Mom is jeopardizing her future by giving away substantial assets.

"Mom is jeopardizing her future by giving away substantial assets" how so? is this something we can also check with estate planning agents?

 

[FlyingRon]

I already told her. Asset dumping can disqualify her for medicaid. Even barring that, if she NEEDS the money giving you the house now precludes that (as she's already precluded from getting a reverse mortgage since there are now owners under 62).

 

[LdiJ]

Zig, no, we are not taking out a mortgage loan. since it's almost paid off, we don't have short term plans to take out a loan. mom is just asking how to go about in giving us her 70% share as gift.



"Mom is jeopardizing her future by giving away substantial assets" how so? is this something we can also check with estate planning agents?

WHY does mom want to gift you the 70%? Lots of people think that they should gift their houses to their children to avoid probate, not realizing that the gift actually will end up costing their children a considerable amount of tax. On top of that gifting the house to the children also ends up causing huge problems if the parent ever needs nursing home care.

My mom tried to gift us children her house in order to avoid probate and I finally made her understand that in our state at least, we would be far better off just inheriting her house.

 

[dorayaki]

WHY does mom want to gift you the 70%? Lots of people think that they should gift their houses to their children to avoid probate, not realizing that the gift actually will end up costing their children a considerable amount of tax. On top of that gifting the house to the children also ends up causing huge problems if the parent ever needs nursing home care.

My mom tried to gift us children her house in order to avoid probate and I finally made her understand that in our state at least, we would be far better off just inheriting her house.

well i have an older brother, which when mom helped him with his house, he made himself 100% ownership. whereas when our mom helped me, it was titled as such. so now mom wants to gift this house to my wife and i because in case something happens, my older bro doesn't get half of my mom's 70% share.

 

[FlyingRon]

well i have an older brother, which when mom helped him with his house, he made himself 100% ownership. whereas when our mom helped me, it was titled as such. so now mom wants to gift this house to my wife and i because in case something happens, my older bro doesn't get half of my mom's 70% share.

Giving property a way is a lousy method of estate planning. Your mother can accomplish the same thing in a better fashion. Get her to an attorney.
While you're there dealing with the house in a prudent fashion, if she doesn't already have certain other documents it would behoove her to have them put in place. Things like advance medical directors, possible durable and medical power of attorneys, etc... We were fortunate to get these in place for my mother in law before she became incompetent to care for herself.

 

[dorayaki]

Giving property a way is a lousy method of estate planning. Your mother can accomplish the same thing in a better fashion. Get her to an attorney.
While you're there dealing with the house in a prudent fashion, if she doesn't already have certain other documents it would behoove her to have them put in place. Things like advance medical directors, possible durable and medical power of attorneys, etc... We were fortunate to get these in place for my mother in law before she became incompetent to care for herself.

thanks flyingron~~

 

[LdiJ]

well i have an older brother, which when mom helped him with his house, he made himself 100% ownership. whereas when our mom helped me, it was titled as such. so now mom wants to gift this house to my wife and i because in case something happens, my older bro doesn't get half of my mom's 70% share.

There are several different methods that can be used to accomplish that, that would cost you a lot less money in the long term than her gifting it to you now.

You need to get your mother a consult with an estate planning attorney.

 

[Zigner]

... in case something happens, my older bro doesn't get half of my mom's 70% share.

A will does that, as does a trust...and both have advantages over a simple gift.

ETA: I know you were also told this above. I'm simply reiterating the information.