Want to add daughter to deed

[kfowler57]

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

I'm getting ready to retire to FL, my mortgage here in Missouri only has a few years left, the payment is low and my daughter wants to move in and take over the payments. She's not on the mortgage. I just want her to finish making the payments and she can have the house. If I add her to the deed (and assuming she does makes the payments on time), could there be a problem for her keeping the house if I passed away before the mortgage is paid off. I don't want them (Citibank) to realize I'm gone two years after I've passed away and take back the house, in spite of her making timely payments.What is the name of your state (only U.S. law)?

 

[LdiJ]

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

I'm getting ready to retire to FL, my mortgage here in Missouri only has a few years left, the payment is low and my daughter wants to move in and take over the payments. She's not on the mortgage. I just want her to finish making the payments and she can have the house. If I add her to the deed (and assuming she does makes the payments on time), could there be a problem for her keeping the house if I passed away before the mortgage is paid off. I don't want them (Citibank) to realize I'm gone two years after I've passed away and take back the house, in spite of her making timely payments.What is the name of your state (only U.S. law)?

Citibank won't take the house back if timely payments are being made...particularly on a mortgage that is nearly finished.

 

[nextwife]

I recommend you stay on title as co owner until at least the mortgage is paid off. And make sure there are no adverse legal matters that will attach to title BEFORE you add her!

There is a five year lookback period- so you can't give away your assets in anticipation of long term care needs. If you have funds set aside to take care of such needs without using the house, then this should be OK. In otherwords you can't enrich your kids by giving your assets away and then expect future long term care needs to be paid by taxpayers.

 

[kfowler57]

Got it. When you say I should check for adverse legal matters, what should I look for? As far as I know, everything is fine on the deed and the property. No liens or crazy neighbors causing problems. I've been here forever.

Thanks to all for your help.

 

[Mass_Shyster]

"Whoa" says Steve.

Some mortgages have a "due on transfer" clause. If you add daughter to the title, the balance of the mortgage may come immediately due.

Check first.

 

[nextwife]

Got it. When you say I should check for adverse legal matters, what should I look for? As far as I know, everything is fine on the deed and the property. No liens or crazy neighbors causing problems. I've been here forever.

Thanks to all for your help.

I am referring to matters such as liens, judgments, lawsuits, child support leins, unpaid tax liens that might be against DAUGHTER and would then attach to the real estate if she comes on title. Do not make the mistake of presuming to know without a search.

 

[FlyingRon]

Nextwife brings up important points.

Putting someone on the deed is GIVING them ownership. It's not some sort of club membership. Even if you stay on the deed, HALF of the property is hers.
Hopefully you have sufficient other assets that you are in good shape should you require nursing care in the next few years or won't ever need to get something like a reverse mortgage (which you can't get with someone under 62 on the deed).

Further, while the tax laws are constantly being tinkered with, it's generally been better to inherit property than to have it gifted to you.

 

[kfowler57]

I get it. You all have brought up a lot of things I never considered.

Is there a document I can fill out that would make her a beneficiary, like a TOD? I know I can spell it all out in a will, I was trying to make it so she can get it faster than fighting it out with her brothers in court.

 

[LdiJ]

I get it. You all have brought up a lot of things I never considered.

Is there a document I can fill out that would make her a beneficiary, like a TOD? I know I can spell it all out in a will, I was trying to make it so she can get it faster than fighting it out with her brothers in court.

Unfortunately no, there really isn't an easier way that does not involve any risk. You just have to weigh the risks of one vs the other, then decide which risks are less. Could your daughter get a mortgage for the balance due on your home? Or you and your daughter get a mortgage together to refinance the home? If you or she could, then you could gift her half of your equity in the home. If you have not exceeded your lifetime gift exclusion (1 million dollars at this time) then it would not trigger any tax, but you would have to file a gift tax return.

 

[John_DFW]

"Whoa" says Steve.

Some mortgages have a "due on transfer" clause. If you add daughter to the title, the balance of the mortgage may come immediately due.

Check first.

In addition, there very well may be an owner occupied clause.

OP could just sell the house to the daughter, or rent to own contract.

 

[anteater]

Is there a document I can fill out that would make her a beneficiary, like a TOD?

As everybody has pointed out, there are a number of considerations and tradeoffs depending upon your situation and goal. But, on this narrow question, yes, Missouri is one of the 10 or so states that allow for a beneficiary/TOD deed.

Deeds effective on death of owner--recording, effect.
461.025. 1. A deed that conveys an interest in real property to a grantee designated by the owner, that expressly states that the deed is not to take effect until the death of the owner, transfers the interest provided to the designated grantee beneficiary, effective on death of the owner, if the deed is executed and filed of record with the recorder of deeds in the city or county or counties in which the real property is situated prior to the death of the owner. A beneficiary deed need not be supported by consideration or be delivered to the grantee beneficiary. A beneficiary deed may be used to transfer an interest in real property to a trust estate, regardless of such trust's revocability.

2. This section does not preclude other methods of conveyancing that are permitted by law and that have the effect of postponing enjoyment of an interest in real property until the death of the owner. This section does not invalidate any deed, otherwise effective by law to convey title to the interest and estates therein provided, that is not recorded until after the death of the owner.