How to name an inheritor on title?

[Torellian]

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

I own my house along with my dad jointly. I have now paid off a loan from him that pays for his half, meaning that I have now paid for the whole house. How would I go about removing his name from the title (with his permission) in a way that would guarentee the he would get the house if I were to die? Is there a way to register a "will" somehow with the title that would make that happen?

 

[Zigner]

You've already asked this question. https://forum.freeadvice.com/other-real-estate-law-questions-11/can-i-remove-name-title-house-485649.html

 

[Torellian]

You've already asked this question. https://forum.freeadvice.com/other-real-estate-law-questions-11/can-i-remove-name-title-house-485649.html

I know. But things changed a little since last night when I mentioned to my dad about actually doing this. He now suggests leaving his name on the title in case something happens to ME, then he gets the house easily. I find that odd, since I'm 38 and he's 69. But if this is what he wants, then I was wondering if we could still take off his name, but he still gets the house if I died like he wants.

I want his name off so I don't lose my house if ended up in a nursing home, or he got sued for everything he owned (including my house) if he caused a car accident or something like that. But if there was a way to satisfy both of us, then I'm interested in that option.

 

[FlyingRon]

Then you follow up to the existing thread rather than creating a new one.

The answer is you guys have already screwed the pooch on this. You're likely to screw his medicaid eligibility with what you are doing. You can use a will or trust to take care of what happens if you die

Get professional help.

 

[Torellian]

Then you follow up to the existing thread rather than creating a new one.

The answer is you guys have already screwed the pooch on this. You're likely to screw his medicaid eligibility with what you are doing. You can use a will or trust to take care of what happens if you die

Get professional help.

I'm not sure how that would screw his medicaid eligibility. All we did is list our names as joint tenants on my house to protect his interest while I was paying off the loan to him. It was recommended by the Real Estate agent to do it this way when we first bought the house.

 

[Zigner]

I'm not sure how that would screw his medicaid eligibility. All we did is list our names as joint tenants on my house to protect his interest while I was paying off the loan to him. It was recommended by the Real Estate agent to do it this way when we first bought the house.

You tried to do it on the cheap and now you're (both) going to end up paying a LOT more.

 

[Torellian]

You tried to do it on the cheap and now you're (both) going to end up paying a LOT more.

I said we did what the Real Estate agent recommended.

How will we end up paying alot more? Please be specific. If I can understand how it works, then I can remedy it.

 

[Mass_Shyster]

I said we did what the Real Estate agent recommended.

How will we end up paying alot more? Please be specific. If I can understand how it works, then I can remedy it.

Medicaid has a look-back period. In five years, when dad is going into a nursing home, they will look and see that in 2009, he gave half of a house to his son. They will determine that the half he gave his won was $X00,000. Now they will say to him that he needs to use the $X00,000 that he received for the house to pay for the nursing home.

When he says "But it wasn't really my house - it was his", they'll look at him and say "Yeah - right".

 

[tranquility]

It's not just names on paper, it's OWNERSHIP. Deeds are presumptive of ownership.

While you could make arguments to the contrary (like, equitable as opposed to legal ownership), they are arguments attorneys make when things go bad.

This is destined to go bad. That you don't see the medicaid problem (gifting of asset within the probable lookback period) just goes to show it is time to get someone involved who knows the answers. Not your buddy, not a real estate agent, not even your dad; an attorney.

 

[Torellian]

Understood. But there is no gifting being done here. I repaid a loan to him and I have the receipts to prove it. This is not a case where he is simply taking his name off the loan and that's it. This is a case where I have repaid a loan to him, and therefore, I have paidfor his half. He's not just giving it to me. When a person pays off a bank loan, and the bank removes ownership of it from themselves to the homeowner, that isn't a gift for the same reason.

Now I'd just like to do it in a way that would make it to where he would be the sole heir of it if anything happened to me.

 

[efflandt]

A normal lender is handled differently. They are not listed as an owner on the deed, they record a separate lien that is effectively removed when the loan is satisfied. Even for something like a vehicle where the lender holds the title until the loan is satisfied, they are not listed on the title as owner, they are listed as lienholder.

So since you actually paid for it (not a gift), it likely has to be handled like a purchase transaction where you buy out his half. Although, I believe the transfer fee would be waived between parent and child.

See Real Estate Transfer and Merger/Conversion - Wisconsin Department of Revenue

He will also need to account for cost basis and any capital gain on income taxes. For example I had to file WI non-resident tax forms in WI for sale of land even when there was no gain (due to easement issues).

As far as inheritance a will or trust has been mentioned. For example my sister has her Waukesha home in a living trust, so it can benefit her daughters (without going through probate) and not her ex. There is no real estate transfer fee for putting property in a trust.

 

[Torellian]

A normal lender is handled differently. They are not listed as an owner on the deed, they record a separate lien that is effectively removed when the loan is satisfied. Even for something like a vehicle where the lender holds the title until the loan is satisfied, they are not listed on the title as owner, they are listed as lienholder.

So since you actually paid for it (not a gift), it likely has to be handled like a purchase transaction where you buy out his half. Although, I believe the transfer fee would be waived between parent and child.

See Real Estate Transfer and Merger/Conversion - Wisconsin Department of Revenue

He will also need to account for cost basis and any capital gain on income taxes. For example I had to file WI non-resident tax forms in WI for sale of land even when there was no gain (due to easement issues).

As far as inheritance a will or trust has been mentioned. For example my sister has her Waukesha home in a living trust, so it can benefit her daughters (without going through probate) and not her ex. There is no real estate transfer fee for putting property in a trust.

Thanks for the link, although this legal stuff is mostly "over my head".
So if there was a way to convince my dad to do a quit claim deed, would that be enough to do what is needed without all the legal hassles and additional paperwork? I was thinking maybe we could do that (if he'll agree) and then put it in a living trust.

You said, "There is no real estate transfer fee for putting property in a trust." Does that mean that there wouldn't be any cost in changing the current status of the title (joint tenants) to a living trust? What would be the process of doing that? And would doing something like this eliminate having to account for cost basis and any capital gain on income taxes and stuff of that nature?

 

[FlyingRon]

Thanks for the link, although this legal stuff is mostly "over my head".
So if there was a way to convince my dad to do a quit claim deed, would that be enough to do what is needed without all the legal hassles and additional paperwork?

Is the word NO over your head, too. We've told you NO countless times.
You screw your father if you make him do a QC deed. "Receipts" most likely mean NOTHING here. Stop screwing around and find someone competent to see if they can salvage this mess you maide.

I was thinking maybe we could do that (if he'll agree) and then put it in a living trust.

QC to you and then a trust wouldn't change anything.
Deeding to the trust directly (that he was still the trustee/beneficiary) wouldn't protect your interests.

You said, "There is no real estate transfer fee for putting property in a trust." Does that mean that there wouldn't be any cost in changing the current status of the title (joint tenants) to a living trust?

Changing from your name to your in vivo trust generally has no implications period. However other changes will.

What would be the process of doing that?

Get someone who knows what they are doing to first create the trust, and then prepare and record the deed transfering it.

And would doing something like this eliminate having to account for cost basis and any capital gain on income taxes and stuff of that nature?

No, this has no effect on taxes.